Lithuanian Prime Minister steps down amid investigation into alleged corruption
Lithuanian Prime Minister Gintautas Paluckas tendered his resignation on Thursday, 31 July 2025, as an ongoing investigation into potential financial crimes involving companies linked to him unfolds. The probe centres on allegations of preferential loans, misuse of EU funds, and past corruption cases.
Key details of the investigation include:
- Authorities, including Lithuania’s Financial Crimes Investigation Service (FNTT), searched offices of Dankora, a company owned by Paluckas’ sister-in-law that received EU funds used to purchase goods from Garnis, a company in which Paluckas holds a 49% stake.
- A 20,000-euro loan granted by the national development bank to Garnis is under scrutiny, as it was allegedly preferential given Paluckas’ involvement with the company; this loan sparked the initial scandal.
- Paluckas was also implicated in a 2012 case when, as a senior official of Vilnius City Municipality, he was fined 16,500 euros for abuse of office linked to irregularly hiring a pest control company—a fine paid with a decade-long delay, raising further concerns.
- Investigative reporters in Lithuania first revealed in May that the same company partly owned by Paluckas received a subsidized state loan while he was head of government.
- Dankora returned the EU funds after public outcry, but investigations continue into multiple cases of alleged corruption revealed by the press.
Political pressure grew as coalition partners threatened withdrawal, leading to Paluckas’ resignation from both prime minister and leader of the Social Democratic Party. However, he maintains his innocence and awaits the investigation’s final conclusions.
The government cabinet is expected to resign as well, likely causing a political crisis shortly before scheduled Russian-Belarus military exercises in the region.
It is worth noting that Paluckas was previously convicted of abuse of office while serving as the director of the Vilnius City municipal administration and was fined.
In a statement, Paluckas said he will continue to defend his honor and dignity. The resignation was announced an hour ago to the president, and the search for a successor has already begun. The investigation is ongoing, focusing on financial graft connected to the prime minister’s business interests, preferential loans, misuse of subsidies, and historic abuse of office.
The ongoing investigation into the Lithuanian Prime Minister Gintautas Paluckas involves allegations of financial crimes, preferential loans, and misuse of EU funds, which have triggered political pressure and general-news headlines. Crime-and-justice agencies are scrutinizing a 20,000-euro loan, the irregular hiring of a pest control company in 2012, and the receipt of a subsidized state loan by a company partly owned by Paluckas, all leading to the resignation of the prime minister and creating a potential general-news and crime-and-justice crisis for the Lithuanian government.
