Corruption in Lithuania

Corruption in Lithuania is examined on this page.

Extent

 % Percentage of Lithuanian population who Remarks References
95% consider corruption to be widespread [1] [2]
95% consider country’s corruption to be a major problem [1] [2]
90% Believe that corruption is widespread in Lithuania’s government [3]
73% experience same or increased levels compared to 5 years ago A 2016 study. 31% experience same level of corruption, 20% higher and 22% much higher [4]
72% believe that snatches help solving problems. [5]
70% of companies do not participate in tenders [6]
61% are prepared to pay bribes when needed. [5]
48% believe that corruption is pervasive in the legal system. [7]
46% would not report corruption due to belief that the corrupt individuals would not be punished. [8] [9]
45% paid bribes in the preceding year [10]
39% consider the prevalence of tax evasion to be a major problem. [11] [12]
25% trust Lithuanian legal system [13]
23% would report corruption [4]
10% trust Lithuanian parliament [13]

Summary

In 2017, Lithuania remains to be one of the most corrupt EU countries. Current environment is unsafe for investment and honest competition, according to independent experts. [14] Anti-corruption laws are often missing or not being enforced. [14] According to 2014 EU Anti-Corruption Report, Lithuania had the highest proportion of citizens who had paid bribes in the preceding 12 months of any EU country, with 95% of citizens considering corruption and a major problem. [1] [2] In surveys of Lithuanian business people, corruption is highlighted in the main issue of prohibiting economic development and international competitiveness. [15]An 2016 investigation by Lithuanian government revealed that only 23% of Lithuanians would report corruption, [4] and those who would not often believe that the corrupt individuals would not be punished. [8] [9] Same investigation from 2016 found that 73% of citizens experience or increased levels compared to 5 years ago. Lithuania has established a hotline for reporting corruption, but no major crimes have been reported in the first 5 years of its operation. [16] Transparency International’s 2016 Corruption Perception Index ranks the country 38th place out of 176 countries, [17] on with neighboring Latvia, [18] but behind Poland [19]and Estonia which ranks 22nd in the same rating. [20]

Tax evasion is prevalent in the Lithuania and total tax revenues was 27.5% of GDP in 2012, the lowest in the European Union. According to Lithuanian president Dalia Grybauskaitė , Lithuanian parliament’s unwillingness to fight corruption is a major issue in the fight against corruption. [21] An anti-corruption program was introduced by the government in 2011-2014. [22]

Annual survey done by Special Investigation Service (STT) revealed that 45% of Lithuania’s citizens paid bribes in 2014. [10] Lithuania’s shadow economy was estimated to be 29% of the GDP in 2012. [23] Society’s trust in the political and legal system is low overall, a survey in 2015 Showed That 25% of citoyens trusted the Lithuanian legal system and 10% trusted the national parliament, the Seimas . [13] An international Gallup study found that 90% of Lithuanians believe that corruption is widespread in Lithuania’s government. [3]A study by Freedom House in 2013, which has been undermined by judicial and judicial decisions, compromising the independence of the courts. [22]Despite solid judicial base, Lithuania’s law is very weak according to independent assessors. [24] A 2016 corruption survey by STT found that the majority of Lithuanian population perceives that corruption levels have increased in the past 1 year and past 5 year periods. [4]

Impunity from corruption

There are numerous examples, recent and past, which strongly suggest that it is rare to be punished for corruption charges in Lithuania. In most cases, corrupt officials do not receive any penalties. Even high-profile cases, which receive much attention, often end without any punishments. In 2017, Lithuania had many prominent scandals, but they did not lead to any corruption charges:

  • Newspapers uncovered Mr. Gintautas Kėvišas, a director of the Lithuanian National Opera and Ballet Theater , had amassed significant wealth despite a meager 2000 EUR monthly salary. His assets included wide areas of land, Several houses and an apartment, [25] as well as real estate in Altea , Spain . [26] Kevišas HAD beens Previously Involved in scandalous and expensive renovation of Lithuanian National Opera and Ballet Theater . [27] [28] As of November 2017, there is no active investigation and Mr. Kėvišas has not received any punishment.
  • “Golden spoon scandal”, involves Lithuanian military which bought large quantities of kitchen supplies at prices 7-8 times above the market price. [29] The scandal became a major focal point in all of Lithuania’s major newspapers, but as of November 2017, it did not lead to any dismissals or corruption charges. A report by 15 min found that corruption schemes continue even after “golden spoon” and other scandals of 2017. [30] or companies on the “black list”. [31]
  • In mid-2016, Eligijus Masiulis, leader of Lithuania’s second largest political party at the time, was arrested with an alleged 106 thousand euro bribe. As of November 2017, no charges have been pressed against Masiulis.
  • In 2009, municipality of Kaunas built a dysfunctional outdoor toilet at a significantly inflated cost cost. [32] In 2012, public servants involved in the prison, misuse of power, misuse of power, and falsifications. [33] In 2014, all public servants accused of corruption were cleared of charges [34] and received compensation higher than their annual salary. [32] [35]
  • Suspicions that 20 million litas were lost by Kaunas municipality eventually died out without any criminal charges. [36]
  • In 2017, Rasa Kazėnienė revealed that Lithuanian prison procurement contracts are always won by the same time as the market. Lithuanian STT refused to start an investigation. [37] Rasa went on the record with 15 min about direct and indirect threats which followed her revelations as they were going to be “dealt with”, persistent stalking, and flood of complaints against her. [38]
  • Miroslavas Jagela, to form STT inspector, sued STT for unlawfully firing him and for prohibiting an anti-corruption investigation into his boss’ friend. [39]

Lobbying in Lithuania

Lithuania has a large number of shadow lobbyists, some of whom are at the same time working in the Lithuanian parliament. [40] A study by 15 min revealed that many lobbying organizations are using government. [41] There is very little insight in the sector, as there are no reporting or control regulations. Lobbying is widely spread and particularly related to energy, pharmaceuticals, construction, public healthcare and alcohol. Illegal conduct such as bribery is common. [42] Lithuanian parliament has been unwilling to regulate lobbying. [43]

Nepotism

Nepotism is a very visible problem in the Lithuanian society. [44] [45] It exists in all levels of society and especially in the public sector. Lithuanian language even has an expression about nepotism “Lithuania is a country of relative” (Lithuanian: Lietuva yra giminių kraštas). [46] Despite nepotism’s spread, it is rarely discussed in the parliament or in any of the other governing structures. [47]

Nepotism is deeply rooted within the public sector. There are known counties in many counties – Vilnius , [48] Klaipėda , [49] [50] [51] Šiauliai , [52] Marijampolė , [53] Kaunas , [54] Telšiai [55] etc. An investigation by Kauno diena found tensions de lieu positions sur base sur les amiships ou kinship. [54] At least one fourth of employees of Marijampolė municipality have related filling local governmental jobs. [56] [57] There is little in the way of punishment for nepotism. In a 2016 study bySTT , nearly half of public directors claiming that they have some experience of employing somebody based on their political party membership. [58] A politician of a small village. Bragged on her Facebook profile [49]

The practice of trading employment for favors, friendship or kinship is also prevalent in Seimas , Lithuanian parliament. Loreta Graužinienė , trainer of the parliament , gave her hairdresser’s daughter a job in the parliament. [59]Member of Parliament Greta Kildišienė is employed by the photographer in the parliament. When Lietuvos rytas investigated the issue, it turned out that the photographer was receiving a salary, but nobody in the parliament knew who she was, what she did, and had not seen her. [60] Parliamentarian Kestutis Pukas employed his lawyer’s wife as his advisor. [61]

Various forms of nepotism are also prevalent in public companies and organizations. Vice Minister of Ministry of Social Security and Labor Arrangements for Public Retirement. [62] A 15 min study discovered that one in six employees of Registro centras are relative. [63] Another study by Delfi found that 34% of Kauno’s employees are regionally related. Entire construction and road is highly influenced by nepotism. [46]Internal audit of public road builder “Automagistralė” revealed that some of the work was done in order to benefit the CEO, eg to build his mother’s house. [64]

Nepotism bands are also prevalent between public entities and their partners in the private sector, which increases risk for corruption in public procurement. High percentage of unofficial and unannounced public procurement tends to be one of the factors contributing to the average price. [65] When Lithuanian Railways investigated 5M EUR damage through procurement contracts, they discovered that 40% of employees were close to suppliers and partners. [66]Suppliers and partners with kinship bands to Lithuanian Railways employees have been consistently promoted and prioritized. [67]Many of the public procurement scandals revolving about inflated prices involved nepotism – Šilainių hospital contracts, [68] Kaunas prison contracts, [69] [70] the many scandals surrounding Gintautas Kėvišas family, [71] etc.

Famous cases

Alcohol box money case

In May 2016, Masiulis box money box shook Lithuania. Eligijus Masiulis , leader of the Liberal Movement , has prominent political party in Lithuania, was arrested with 106 thousand euros in cash stuffed into an alcoholic beverage box. Bribery suspicions initiated a criminal investigation. [72] MG Baltic , Lithuanian Investment Firm, is suspected of giving bribe. Another 250 thousand euros in cash were found in Masiulis apartment. In September 2017, the Liberal Movement and Labor Party were named as suspects in the continuing investigation. [73] As of November 2017, no charges have been pressed against Masiulis.

Kaunas golden toilet case

In 2009, municipality of Kaunas ( converted by mayor Andrius Kupčinskas ) converted to a shipping container into an outdoor toilet at a cost of 500,000 litas (around 150,000 euros). It also required 5,000 LTL (1,500 EUR) in monthly maintenance costs. [74] At the same time when Kaunas “golden toilet” was built, Kėdainiai tennis club acquired a very similar, but more advanced solution for 4,500 EUR. [32] Because of the inflated cost, Kaunas outdoor toilet was nicknamed “golden toilet”. Despite the investment, the “golden toilet” was dysfunctional and remained closed for years. It was subject to a lengthy anti-corruption investigation. [74]Municipality even considered to demolish the building. [75] In 2012, public servants involved in the prison’s misuse of power and document falsifications. [33] In 2014, all public servants accused of corruption were cleared of charges [34] and received compensations, which pushed the total construction cost to 352,000 euros. [32] [35]

Lidl police headquarters case

In 2016, Lidl bought an abandoned building in the outskirts of Vilnius with intentions to build local headquarters. Soon after the purchase, Lithuanian Union of Architects (Lietuvos architektų sąjunga) [76] [77] and Lithuania’s ministry of culture [78] declared the building ruin to be a national treasure freezing Lidl’s plans in the process. [79] There have been speculations and allegations that such actions were a covert attempt at extorting snatches. After a public argument, Where Lidl Placed formal complaints to various branches of Lithuanian government, Including to Lithuania’s president, [80] and after-Several rounds of legal battles, [81]Lidl settled in the early 2017. [82]

Post-2016 examples

  • In 2016, a Lithuanian public energy company. [83] As of September 2017, no charges have been brought against any employees of the company.
  • In 2016, Ū Ū R R R R providing providing providing providing providing providing providing providing 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016, agencyŪ RŪ [84]
  • In 2016, several politicians in Kaunas , Lithuania’s second-largest city, were received by the new city administration. [85]
  • In 2016, a politician in Kaunas was arrested under suspicion that his newly built house was a bribe, provided to him by a government contractor. [86]
  • In 2017, the head of state-owned Šilainiai clinic, one of the largest clinics in Kaunas, was sued for corruption. Under his management, the clinic had signed several contracts under conditions of management. [87]
  • In early 2017, a scandal erupted when newspapers uncovered that Gintautas Kėvišas, a director of the Lithuanian National Opera and Ballet Theater with a 2,000 EUR salary, had amassed significant wealth, including large areas of land, several houses and an apartment, as well as real estate in Altea , Spain . [25] [26] Kevišas was involved in scandals surrounding an expensive renovations at the theater. [28] [27] He was dismissed from his position, though, as of September 2017, there.
  • In 2015, “Start Vilnius”, a municipal agency tasked with attracting investment, allowed one of its employees to claim a favorable plot of land in Vilnius. [88] In 2016, Vilnius has a private office for a private company for 15,000 EUR. [89]

Examples pre-2016

  • Arturas Zuokas , mayor of Vilnius was convicted for trying to bribe a fellow politician. Criminal record was later removed, but the Zuokas was not declared innocent. [90] [91]
  • In 2004, Lithuanian chairman Rolandas Paksas became the first president in Europe to be impeached. He was impeached on multiple corruption charges: for giving Lithuanian citizenship to his Russian donor Jurij Borisov, for passing secret information to Jurij Borisov and for pressuring a private company to hand over to people close to Paksas [92] [93]
  • Lithuania is a major receiver of EU funding [94] and there have been several high-profile cases of EU funding embezzlement [95] [96] [97]
  • There are suspicions that project to close Ignalina Nuclear Power Plant involves significant embezzlement and money laundering [98] [99]

References

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  76. Jump up^ “Konfliktas išspręstas: Vilniaus valdžia leido” Lidl “Griauti buvusį Kelių policijos pastatą” . November 13, 2017 . Retrieved 18 November 2017 .
  77. Jump up^ ” ” Lidl “ruošiamą griauti pastatą stojo ginti šalies architektai” . November 13, 2017 . Retrieved 18 November 2017 .
  78. Jump up^ “Vilniaus valdžia: I do not Kultūros paveldo departamentas,” Lidl “įsigytas pastatas jau būtų nugriautas – Verslas – 15min.lt” . November 13, 2017 . Retrieved 18 November 2017 .
  79. Jump up^ ” ” Lidl “trūko kantrybė – kreipėsi į prezidentę, iš Lietuvos ketina reikalauti atlyginti nuostolius – Verslas – 15min.lt” . archive.org . September 23, 2017. Retrieved October 21, 2017 .
  80. Jump up^ “Neapsikentęs prekybos tinklas” Lidl “kreipėsi net į prezidentę – DELFI Verslas” . archive.org . October 18, 2017 . Retrieved October 21, 2017 .
  81. Jump up^ “Teismas iš naujo spręs, ar priimti” Lidl “pretenzijas Vilniaus valdžiai – Verslas – 15min.lt” . archive.org . October 18, 2017 . Retrieved October 21,2017 .
  82. Jump up^ “Bendrovės” Lidl Lietuva “, savivaldybės bei paveldosaugininkų ginčas baigėsi taikos sutarties patvirtinimu – Lietuvos teismai” . archive.org . October 18, 2017 . Retrieved October 21, 2017 .
  83. Jump up^ ” ” Auksinių šaukštų “skandalą keičia” auksiniai kabeliai “- Verslas – 15min.lt” . 22 September 2017.
  84. Jump up^ (in Lithuanian) “Skandalas Rinkos reguliavimo agentūroje: varguoliams skirtos kruopos ir miltai kainuoja kaip auksiniai” . 15min.lt . Retrieved 5 April 2017 .
  85. Jump up^ (in Lithuanian) “Kauno politikė priversta pasiaiškinti: nieko nedirbo, bet gavo 1500 eurų atlyginimą?” . delfi.lt . Retrieved 5 April 2017 .
  86. Jump up^ (in Lithuanian) “Štai koks namas atiteko kyšininkavimu įtariamam Kauno rajono valdininkui” . lrytas.lt . Retrieved 5 April 2017 .
  87. Jump up^ (in Lithuanian) “Kauno savivaldybė kreipėsi į teismą dėl Šilainių poliklinikos sutarčių” . respublika.lt . Retrieved 5 April 2017 .
  88. Jump up^ (in Lithuanian) “Afera Artūro Zuoko panosėje: įtakingas pareigūnas susižėrė miesto turtą į savo rankas” . 15min.lt . Retrieved 5 April 2017 .
  89. Jump up^ (in Lithuanian) “Specialus tyrimas: žemė Vilniaus širdyje dalijama pusvelčiui” . 15min.lt . Retrieved 5 April 2017 .
  90. Jump up^ (in Lithuanian) “Amžinoji Vilniaus mero rinkimų byla baigta: Zuokas – kaltas” . 15min.lt . Retrieved 6 April 2017 .
  91. Jump up^ (in Lithuanian) “A.Zuokui panaikintas teistumas” . delfi.lt . Retrieved 6 April 2017 .
  92. Jump up^ (in Lithuanian) “Prezidentas R.Paksas yra nušalintas nuo pareigų” . Delfi.lt . Retrieved 6 April 2017 .
  93. Jump up^ (English) “Lithuanian Parliament Removes Country’s President After Casting Votes on Three Charges” . New York Times . Retrieved 6 April2017 .
  94. Jump up^ (in English) “Infographics: EU Budget Expenditure and Contribution by Member State” . European Parliament . Retrieved 6 April 2017 .
  95. Jump up^ (in Lithuanian) “SAPARD parama: pradanginti ES milijonai valdininkams nerūpi” . alfa.lt . Retrieved 6 April 2017 .
  96. Jump up^ (in Lithuanian) “E.Cijausko veiklą shots speciali komisija” . delfi.lt . Retrieved 6 April 2017 .
  97. Jump up^ (in Lithuanian) “Korupcija skandina milijoninius projektus” . delfi.lt . Retrieved 6 April 2017 .
  98. Jump up^ (in Lithuanian) “Nešvarus pirmasis milijardas” . respublika.lt . Retrieved 6 April 2017 .
  99. Jump up^ (in Lithuanian) “Atominiai litai išgaruoja” . VakaruEkspresas.lt . Retrieved 6 April 2017 .

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