The Latvian Building Materials Traders association is holding the government to account for letting contracts to illegal traders. Vice President Guntis Sokolovskis points out that those traders who avoid taxes and don't pay wages are in a better position to get government contracts because they can offer lower prices for goods and services.
The State is apparently still awarding contracts on the basis of lowest price against the technical specifications. Sokolovskis points out that the disordered government policies threaten the honest traders who are paying both white wages and taxes.
There are many companies in the building trade who are owed large amounts of money or owe money. The usual practice is to close the company and then open another one. This year 587 new building supplies companies have newly registered despite the industry contracting severely.
The Association has 34 dealers and a combined annual turnover of 386million Lats.
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