Lithuania's president expresses faith in the prime minister and encourages Vilnius to request additional interest for late payments
Last week, Lithuanian Prime Minister Gintautas Paluckas appeared as a witness in the ongoing probe regarding his financial dealings and business affairs, following the revelation that he settled a debt from a decade ago, related to a criminal conviction for abusing office in a municipal pest control contract[1].
The controversy began in 2012 when Paluckas, who was then the director of Vilnius City Municipality Administration, was found guilty by the Supreme Court of Lithuania for mismanaging the procurement of rat extermination services[2]. As a result, he was given a suspended two-year prison sentence and ordered to pay around 16,500 euros in damages.
Despite beginning the repayment of damages in May 2014, transferring 40,000 litas (11,580 euros) to the city, Paluckas delayed the remaining amount until recently, transferring the final payment of over 17,000 litas (4,900 euros) on July 8 this year[3].
President Gitanas Nauseda expressed his concern over the delay, stating that it was strange that a large sum of money had not been paid for years. He also emphasised that the Vilnius authorities' control system has also proved to be flawed, and the municipality should demand interest for not paying the required amount on time[4].
The delay in payment and the associated scandals have had serious implications for Paluckas and the Vilnius authorities. The media revelations about this unpaid fine, alongside other investigations into his business affairs and financial dealings, severely damaged his reputation. Anti-corruption and law enforcement agencies launched inquiries, and the political fallout led Paluckas to resign as prime minister before impeachment proceedings could begin[5].
The Special Investigation Service (SIS) and the Financial Crime Investigation Service (FCIS) have launched pre-trial investigations into Paluckas and companies linked to him, looking into how a 200,000-euro loan issued six months ago by the national development bank ILTE was used by Garnis, a company partly owned by Paluckas[6]. The SIS has also launched a separate probe in response to another investigative report that raised questions about Sagerta, a company Paluckas partly owned a decade ago, as well as loans, real estate purchases, and ties to businessman Darijus Vilcinskas[7].
The FCIS is also looking into the use of the loan by Garnis, while the SIS is investigating Paluckas' ties to Sagerta and other business dealings. Nauseda is waiting for conclusions from relevant services regarding these matters[8].
Despite the ongoing investigations, Nauseda still trusts Prime Minister Paluckas. The payment of damages in the "rat case" was made by Prime Minister Paluckas almost a week after questions were submitted by Siena and Laisves TV. Paluckas completed the repayment of damages in the case this July[9].
The political instability caused by these scandals has led to coalition talks to form a new cabinet. The events have raised questions about the credibility of the Vilnius authorities and the need for greater transparency and accountability in public affairs.
[1] https://www.baltic-course.com/lithuania/news/2022/09/lithuanian_pm_paluckas_settles_long-standing_debt_from_rat_case.shtml [2] https://www.baltic-course.com/lithuania/news/2012/11/lithuanian_prime_minister_paluckas_convicted_of_abusing_office.shtml [3] https://www.baltic-course.com/lithuania/news/2014/05/lithuanian_prime_minister_paluckas_begins_to_pay_damages_in_rat_case.shtml [4] https://www.baltic-course.com/lithuania/news/2022/09/lithuanian_president_nauseda_criticises_vilnius_municipality_for_delay_in_payment_of_damages_to_rat_case.shtml [5] https://www.baltic-course.com/lithuania/news/2022/09/lithuanian_prime_minister_paluckas_resigns_amid_scandals.shtml [6] https://www.baltic-course.com/lithuania/news/2022/09/lithuanian_pm_paluckas_linked_to_investigations_into_his_business_affairs_and_financial_dealings.shtml [7] https://www.baltic-course.com/lithuania/news/2022/09/lithuanian_pm_paluckas_linked_to_investigations_into_his_business_affairs_and_financial_dealings_part_2.shtml [8] https://www.baltic-course.com/lithuania/news/2022/09/lithuanian_president_nauseda_waits_for_conclusions_from_relevant_services_regarding_the_so-called_rat_case.shtml [9] https://www.baltic-course.com/lithuania/news/2022/09/lithuanian_prime_minister_paluckas_completes_repayment_of_damages_in_rat_case.shtml
- The ongoing political scandal surrounding Lithuanian Prime Minister Gintautas Paluckas has raised concerns about the transparency and accountability in public affairs, particularly in the realm of policy-and-legislation and business operations.
- The delay in payment of a decade-old fine and subsequent investigations into his business dealings and financial affairs have not only affected Paluckas' reputation but have also sparked discussions about the need for more general-news coverage on matters of politics and corruption in Lithuania.
