Prime Minister Gintautas Paluckas on Thursday denied influencing the state development bank ILTE over a loan granted to a company in which he holds shares and said he had asked the Chief Official Ethics Commission (VTEK) for a ruling on whether there was a conflict of interest.
“In light of the investigation and published information, I personally contacted the Chief Official Ethics Commission today to clarify whether there are any concerns or recommendations regarding the alignment of public and private interests,” Paluckas told reporters at the government headquarters.
Asked whether he intends to step down, the prime minister said: “No”.
“I am convinced I have not violated the relevant law. I have declared my shares in the company in accordance with regulations. I also have several comments on some of the facts or interpretations mentioned in the investigation, but first and foremost I want to state that I have not influenced ILTE regarding the loan in any way – not in writing, not verbally, not formally, not informally,” he added.
An investigative report published Wednesday by the journalism centre Siena and Laisvės TV revealed that a company partially owned by Paluckas received a €200,000 subsidised loan from ILTE while he was serving as prime minister. The company, Garnis, plans to manufacture battery systems. Paluckas owns 49% of its shares.
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The loan was granted in early February under the Startuok programme, designed to support new small and medium-sized enterprises. Paluckas is a majority shareholder in another electronics company, Emus, that has been in business since 2010. It would not have qualified for the startup loan.
In February and March, the government – with Paluckas participating – approved several measures related to ILTE, including legislative amendments regulating the bank and setting borrowing limits for central government bodies, including ILTE.
Paluckas maintains he does not participate in the company’s operations and saw no reason to recuse himself from decisions involving the bank.
Remigijus Motuzas, leader of the Social Democratic parliamentary group, defended the prime minister.
“Personally, I don’t see any wrongdoing here. The only factual issue is that a company in which the prime minister owns shares received a loan from ILTE. From what I’ve seen publicly, the company likely applied under the usual procedures, and no special conditions or privileges were granted,” Motuzas told BNS on Thursday.
“We currently see no indication that the prime minister influenced the process. Moreover, he is not involved in the company’s management,” he added.
Motuzas said the Social Democrats had yet to formally discuss the matter, as lawmakers were working in their constituencies this week. He noted the issue would likely be addressed during next week’s party meeting.
Meanwhile, Arvydas Anušauskas, chairman of the Parliamentary Anti-Corruption Commission and a member of the opposition Conservatives, said Thursday he would send formal inquiries to Paluckas, ILTE, and the ethics commission regarding the loan.
“Today, I will send questions to ILTE, the prime minister, and VTEK. Once we receive responses, commission members will decide whether to open an investigation or take other actions,” Anušauskas told BNS. “There are many unanswered questions, and we need detailed answers to make an informed decision.”
Anušauskas also questioned the company’s eligibility as a startup, suggesting the entire situation should be investigated from the company’s inception.
“If you already operate successfully in the sector and establish a parallel company presented as a startup, that raises more than one red flag,” he said.
He criticised Paluckas for failing to recuse himself from related decisions.
“Every politician knows they must step back from direct business decisions to avoid conflicts of interest or reputational risks. In this case, I believe the prime minister acted inappropriately,” Anušauskas said.
President withholds comments until VTEK ruling
Politicians should hand over control of their businesses and shares before they assume high-ranking positions, presidential adviser Frederikas Jansonas said the prime minister was told during his recent conversation with President Gitanas Nausėda.
“The president expressed his wish that politicians, especially before they take up the most responsible positions in the state, should resolve business issues in a way that would not raise questions or doubts in the future,” Jansonas told reporters.
“We’ve had many similar decisions in history and in the world where not only management but also shares are temporarily handed over to others. If this had been the case with Paluckas, we would have probably had far fewer questions today.”
He also said that President Nausėda will share his position on the matter when the VTEK issues its ruling.
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