Trasta komercbanka is a gift that keeps on giving for its liquidators
It should be reminded that Mārtiņš Bunkus was killed in the summer of 2018. He was a public official, a sworn attorney, an insolvency administrator and a millionaire. He became rich doing the state's work, liquidating Trasta komercbanka - within a six-month period, together with the court-appointed administrator Armands Rasa, they paid themselves 2.9 million euros. For several years now, Bunkus has moved from Aizsaules Street to the Second Forest Cemetery in a fine location next to President Jānis Čakste. Armands Rasa, on the other hand, is continuing his work with other assistants.
An invaluable experience
The website of the law firm RER Lextal states that its partner "Armands Rasa has been the insolvency administrator of LAS (JSC under liquidation) “TRASTA KOMERCBANKA” since June 2017 allowing him to gain invaluable experience in matters related to the insolvency proceedings of credit institutions, including the protection of creditors’ interests. He currently represents the interests of a number of LAS “PNB Banka” creditors in the insolvency proceedings of the bank.”
Armands Rasa continues to gain not only invaluable experience but also invaluable remuneration from the liquidation of Trasta komercbanka. The news section on the bank's own website has not been updated since last summer. This is somewhat negligent because the current news are very valuable. They are published by the official publisher of the Republic of Latvia Latvijas Vēstnesis. By entering the phrase Trasta komercbanka in the search engine, it is possible to use the activity reports to trace the entire process of gaining invaluable experience up to the beginning of the bank's liquidation.
One-third of recovered money goes into expenses
For example (really - just for example), in June 2017, during the previous administrator Ilmārs Krūms, the insolvency expenses of the credit institution, including the remuneration of the administrator and the administrator's assistant, were 175,671 euros. It might seem like a very large amount for two men in one month. But no! It is a very small amount for insolvency proceedings of this scale. The big amount is the one that Armands Rasa and his assistant received in October this year. An official announcement has been placed in the November 15 issue of Latvijas Vēstnesis: “Report of LAS TRASTA KOMERCBANKA for October 2021 in accordance with Section 161 (2) (10) of the Credit Institution Law.”
You can find the following news in the report:
* In October, the administrator recovered the credit institution's assets in the amount of 5,681,670 euros;
* The insolvency expenses of a credit institution in accordance with Article 166 of the Credit Institution Law, including the remuneration of the administrator and the administrator's assistant, were 1,996,500 euros;
* Necessary expenses for the maintenance of the credit institution's property and maintenance of the necessary work premises during the insolvency proceedings: 13,656 euros;
* Expenses for placing publications in newspapers: 573 euros;
* Total expenses of the insolvency proceedings are 2,010,729 euros.
Thus, almost a third of the recovered money was spent on the insolvency administration of Trasta komercbanka in October.
Is this really effective?
Neatkarīgā wanted to know what the Insolvency Control Service, which had been established in the country after the insolvency mafia was exposed, thought about this incredible proportion. However, it turns out that this institution monitors all insolvency proceedings, except those in which credit institutions are administered. The administration of bank insolvency proceedings is supervised by the Financial and Capital Market Commission. They promised to comment on whether this is normal.
Neatkarīgā also turned to the administrator Armands Rasa. He was not available for an interview but said through a co-worker that he would answer a written question. And here's the question:
"Does this amount of expenditure indicate effective management of the insolvency proceedings?"
With the Vidzeme Suburb Court of the City of Riga judgement of 14/03/2016, liquidation proceedings have been initiated.
The license to operate a credit institution has been revoked in accordance with the European Central Bank's 03/03/2016 decision.
With the Vidzeme Suburb Court of the City of Riga judgment of 10/05/2017, it has been declared insolvent. With the Vidzeme Suburb Court judgment of 19/06/2017, administrator Ilmārs Krūms has been removed and administrator Armands Rasa has been appointed.