The Academy of Sciences will appeal the court’s decision regarding the compensation of funds invested in the “Riga” concert hall / Article

9-year-old litigation

The building of the Academy of Sciences built in 1955 and the hall decorated in it once stood out not only for its particularly luxurious interior, but also for the only amphitheater in Latvia and excellent acoustics. Cultural life in these premises was interrupted in 1972, when a fire occurred due to a short circuit, so Miller’s idea to restore the concert hall deserved attention. The hall was in demand by the audience – concerts, performances and meetings were held here. In the first season, there were about 170 of them in total, of which about a fifth were events produced by Miller himself.

The beginning of Miller’s legal proceedings with LZA can be traced back nine years ago, when the Academy of Sciences broke the lease agreement with Miller, and the producer went to court to recover the money invested in the renovation of the hall from the Academy.

The producer allegedly invested more than one million euros in this hall, but because of the management of the academy, disagreements started, which led to court proceedings.

Now the producer is satisfied with the court’s decision. Miller admitted that he is aware that LZA will try to file a cassation complaint in the Supreme Court.

He asked a rhetorical question: “What moral right can the Academy of Sciences, which has been deliberately destroying the concert hall “Riga” for eight years now, have to appeal to the Supreme Court, if neither the Academy nor its new lawyers even came to the district court session?”

Miller believes that any action that the Academy’s management will take will be a deliberate delay, while the Latvian public will be denied the opportunity to visit the concert hall in the very center of Riga, where the number of audience seats is said to be greater than in the National Theatre. Miller called this action a crime against society.

In Miller’s view, the legal proceedings in this case have come because no one from the management of LZA believed that he would succeed in restoring this concert hall. However, when this was done, in his view, illegal activities began.

Miller said: “At that point, the Academy of Sciences began a series of actions, including falsifying documents, with the aim of raiding the renovated concert hall, which they completely failed to do. And the court has also found that the Academy of Sciences had an obligation to compensate those investments, because it was initial agreement.”

Miller said that the total value of the investment in the concert hall reached more than one million euros according to two expertises, but the paid part at the time of the initiation of legal proceedings was 433,000 euros, which the court recognized as justified and compensable.

LZA will appeal the verdict, as the Academy’s arguments have not been heard

The whole process started during the leadership of the previous president of the academy, Ojārs Spārīš, but continues even now, when the academy is led by Ivars Kalvinņš.

Miller emphasized that he will write to LZA several times with the desire to sit down at the negotiating table for a peace settlement, but so far it has not been successful. An amicable settlement is said to be possible for the unpaid part of the investment, which could be the subject of further legal proceedings, including falsification of documents, raiding and lost profits.

Latvijas Radio also tried to contact the former head of LZA, Ojāras Spārītis, but could not get a comment.

The current president of LZA Ivars Kalviņš revealed that he will definitely appeal the court’s decision.

What might be the consequences of this decision if the judgment goes into effect? Kalvinņš said: “In any case, this would have a catastrophic effect on the academy’s operation, because we do not have such funds to pay the unjustified demands, so this payment will have to be covered by the state in one way or another.

But in what way it will happen, I do not know. If it happens.”

Kalviņš also emphasized that LZA does not agree with the court’s decision because the academy’s arguments have not been heard. Kalvins said: “We have no other way but to fight so that the country does not suffer unjustified losses for investments that do not exist in nature or have been dismantled and taken away, and this is what Miller and his people have done.”

There was no representative of the academy in the district court, because Kalvinņš had asked the court to postpone the hearing to a slightly later time, as another lawyer had been hired, who had not had time to familiarize himself with the materials of this voluminous case. Usually the court does not object, but this time it happened differently.

The court process has paralyzed the activity of the Academy of Sciences

How does the ongoing trial affect the priorities of the Academy? Kalviņš admitted that the activity of LZA has been paralyzed, because in the past it was possible to hold conferences, gather scientists and train students in the specific hall, but now it is said to be prohibited. Due to the court process, it is also not possible to attract an investor so that the Academy of Sciences could be transformed into a science and innovation support center, where laboratories and a certification center could be located, so that all the necessary infrastructure would be under one roof, which would be available to both scientists and entrepreneurs for the creation of new products .

Currently, there are tenants operating in the LZA building, but their number is no longer as large as before the Covid-19 pandemic and before the financial crisis of 2008, Kalvinņš said.

Latvijas Radio made sure that the editorial office of the publication “Zintnieks” related to astrology and esotericism, as well as a language learning center, a driving school, art and music studios and other tenants rent premises in the LZA building. The academy also offers rehabilitative exercise for back health, joints and well-being. The “Zinātne” bookstore operates on the first floor.

When he took office three and a half years ago, Kalvinņš made it his priority to raise the prestige of LZA, increase the budget and create a science center in the high-rise building of the academy, but so far the creation of the center has not succeeded.

The high-rise building of the Academy belongs to the state. Previously, it was under the auspices of the “State Real Estate”, but two years ago it came into the possession of the Academy of Sciences without compensation.

Kalvinņš pointed out: “The state has not invested budget funds in the maintenance of this building until now. It is a 50-year-old building, all communications are aging, repairs are necessary, and only the academy has taken care of this.”

The Academy of Sciences is financed from the state budget allocated by the Ministry of Education and Science (MES), and last year this funding reached almost one million euros. Lifetime grants of state emeritus scientists make up the largest part – more than half of the budget, while the second largest budget item is the provision of basic functions of the academy.

If the court decision goes into effect, Miller will receive almost half of the academy’s annual budget.

MOE: Only the academy is responsible for the court process

The Ministry of Interior, under the supervision of LZA, is cautious in its comments. In a conversation with Latvijas Radio, Deputy State Secretary of the Ministry of Education and Culture for Higher Education, Science, Space and Innovation, Jānis Paiders, said that the trial is ongoing between the Academy of Sciences and producer Miller, the ministry is not involved in it.

Paiders explained: “It is the responsibility of the Academy of Sciences for its activity. They have been given a great deal of autonomy to act. In our opinion, if the decision is unfavorable, it is the full responsibility of the responsible persons of the Academy for this entire court process.”

Paiders emphasized that the goals so far have not been met, the number of tenants has not increased, the building is half empty and there are major problems with conducting economic activities. If the court’s decision is unfavorable to the academy, then “it will mean significant changes in how they are able to ensure their current economic activity”, said Paiders.

In the meantime, LZA president Kalvinņš hopes that he will succeed in winning the court and then he could realize one of his strategic goals – to create the state’s “Silicon Valley” by turning the academy into a science and innovation support center. If all competence centers were united in one state building – the Academy of Sciences – then it would be possible to save money and the state would be a winner. It is possible to create a modern designer’s office or a high school of natural sciences in the building, similar to the one operating under the auspices of the Riga Technical University, but so far no ears have been found to implement it. Kalviņš requested a meeting with Prime Minister Evikas Siliņa (“Jaunā Vienotība”) to talk about these issues.