Prime Minister Gintautas Paluckas on Tuesday dismissed calls to resign over a controversial state-backed loan granted to a company he partially owns, calling the allegations “baseless”.
“I haven’t done anything wrong, I’m not accused of anything – why should I step down?” Paluckas told reporters at the Seimas. “These claims are pulled out of thin air.”
Paluckas was responding to growing scrutiny surrounding a €200,000 low-interest loan awarded to battery systems startup Garnis by the national development bank ILTE.
Paluckas owns 49% of Garnis, which was established early last year, even though the prime minister also co-owns an established business working in a similar field. Critics have questioned whether the company was set up specifically to qualify for the loan.
During Tuesday’s parliamentary session, the prime minister faced questions from opposition lawmakers, particularly from Liberal MPs, who requested clarification on the timeline of Garnis’ loan application, the company’s shareholder structure, and the sources of its capital increase. They also called for transparency over the loan agreement and documents.
Investigative outlet Siena and Laisvės TV reported last week that Garnis received the preferential loan while Paluckas was serving as prime minister. A second company, Emus – 51% owned by Paluckas – was ineligible for such financing due to its operating history. The reports suggest that Garnis could have been ineligible too if it were officially linked with Emus in a corporate group.
Further concerns were raised when Andrius Tapinas, a journalist and activist who heads Laisvės TV, shared alleged correspondence showing that goods paid for using Garnis’ loan funds were delivered instead to Emus, which was not eligible for the loan.
Paluckas insisted the companies operate separately and transparently, stating Garnis is a “classic startup” focused on battery production, while Emus specialises in battery management systems. The two are separate companies working together in a technology partnership, “where one company’s products are used as inputs by another company”, he said.
“All the shares are transparently declared. There were no preferential conditions. I’m absolutely confident about the outcome of any investigation,” he added.
The prime minister has asked the Chief Official Ethics Commission to review the matter. Meanwhile, the Special Investigation Service is assessing media claims, and ILTE has launched an internal audit.
“I don’t believe owning shares or starting a business is a sin,” Paluckas said. “I’ve disclosed everything publicly and remain morally strong.”
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