Lithuanian Prime Minister and Social Democratic Party leader Gintautas Paluckas is facing renewed scrutiny over his past business dealings, loans, and long-standing ties to businessman Darijus Vilčinskas, according to a joint investigation by Laisvės TV and the Center for Investigative Journalism Siena.
The investigation reveals that in 2013, Paluckas acquired a newly established company, Sagerta, and served as its head. The firm developed a lakebed mapping project called MyLakeMap.
The venture proved unsuccessful. Between 2013 and 2017, Sagerta received €180,000 in loans that were never repaid, the report said.
While the loans were reportedly issued by a company called Uni Trading, the investigation could not determine who owned or controlled the lender. Both Paluckas and Vilčinskas denied knowing the company’s true ownership, even though business registry records show that Vilčinskas at one point represented Uni Trading’s interests.
Vilčinskas told reporters that Uni Trading had in fact been a shareholder of Sagerta from its early weeks of operation, but said this was not recorded in official registries due to a clerical error.
According to the investigation, Uni Trading’s ownership structure – especially during Sagerta’s initial funding years – raises significant questions. At the time, the company was managed through another Lithuanian firm, Amber Realty Investments, which in turn was controlled by Cyprus-based Bitus Holdings Limited.
Paluckas and Vilčinskas also had other links. In 2012, Paluckas purchased a 127-square-meter newly built apartment in Vilnius’ Trinapolio Street from a company led by Vilčinskas, Verslo Investicijų Projektų Centras (VIPC). Public registry data provided to Siena showed the transaction was valued at €223,000. Both parties claim the property was legally acquired with the help of a bank loan.
In summer 2018, after Paluckas had fully divested from Sagerta and was serving as vice mayor of Vilnius, the city council approved a €6 million deal to take over the fire-damaged Trade Union Palace from VIPC Vilnius – a company linked to Vilčinskas – for public use. The site is now being redeveloped into the National Concert Hall.
Paluckas, in written responses to journalists, emphasised multiple times that he had no joint business ventures with Vilčinskas.
Vilčinskas described the prime minister as a long-time family friend.
“I have no ties to the Lithuanian prime minister. But with Mr. Gintautas Paluckas, we’ve been family friends for more than 15 years, and that’s no secret,” he said.
In late May, Siena and Laisvės TV reported that Garnis, a company partially owned by Paluckas and planning to manufacture battery systems, received a €200,000 low-interest loan from the national development bank ILTE.
Authorities are now investigating whether the loan was granted on legitimate grounds and whether the funds are being used appropriately.
The Chief Official Ethics Commission is also looking into whether Paluckas may have violated conflict-of-interest rules by taking part in government decisions involving ILTE while Garnis was receiving funding from the bank.
Paluckas has denied any wrongdoing, stating that he does not participate in Garnis’ daily operations and has not mixed public and private interests.
PM’s spokesman calls allegations ‘fantasies’
Palucas’ spokesman has called the report “fantasies” that have little to do with “real facts”.
“It is a lot of speculation, assumptions, fantasies, not based on real facts,” Justinas Argustas, an adviser to the prime minister, told LRT RADIO.
“But I would like to stress that the prime minister answered all the questions of his colleagues, explained all the facts and circumstances, and the creators of the investigation are being creative with them. This can be described as speculation and attempts to show alleged links with various people based on stories dating back a decade or more,” he added.
According to Argustas, the prime minister understands that his position places his assets and connections under more scrutiny, but, he said, Paluckas has declared everything in accordance with the law and will answer any questions that arise.
MPs of the opposition Homeland Union (TS-LKD) party said on Sunday they would have Paluckas answer all the questions raised by the report.
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