The State Environmental Service in Latvia has imposed hefty fines on two more waste management companies, which in the past received substantial natural resources tax breaks, TV3 television reported on October 1st, cites LETA.

As reported, last month the Environmental Service slapped a EUR 12.9 million fine on Riepu Bloki company that had been storing in Riga huge amounts of used tires well above the permitted limit. The service also terminated agreement with the company, thus kicking it out of the hazardous waste management system, which means that the company and its cooperation partners will no longer be eligible to the relevant tax rebate.

According to TV3, the Environmental Service last week fined Nordic Recycling EUR 9 million and Latvijas Zalais Elektrons - EUR 12 million. The service is to officially announce its decision sometime later this week.

The two companies are said to be unable to prove that they recycle waste paper, wood, carton and glass according to the procedures relevant.

TV3 said that shutting down Nordic Recycling and Zalais Elektrons will cause massive problems to companies that use disposable tableware, glass and plastic bottles. They will have to sign agreements with either Latvijas Zala Josta or Latvijas Zalais Punkts recycling companies, whose services are costlier.

TV3 also reports that the Environmental Service's Director Inga Kolegova is not denying that the two companies were imposed the huge fines at the Environmental Protection and Regional Development Ministry's behest. She also told TV3 that, although the huge fines were absurd and it was clear that neither company could pay such a fine, the Environmental Service would continue the practice.

According to TV3, one of the most prominent figures in waste management and recycling business is Janis Vilgerts, who formerly was parliamentary secretary at the Environmental Protection and Regional Development Ministry. Vilgerts' company has a stake in Latvijas Zala Josta company, and he is the head of the Latvian Association of Waste Management Companies.

Vilgerts told TV3 that he had several times complained to the Environmental Service about suspicious companies whose services were inexplicably cheap and damaging competition on the waste management and recycling market.