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Corruption in Lithuania

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Corruption in Lithuania is examined on this page.

Extent

% Percentage of Lithuanian population who Remarks References
95% consider corruption to be widespread
95% consider country's corruption to be a major problem
90% believe that corruption is widespread in Lithuania's government
72% believe that bribes help solving problems.
61% are prepared to pay bribes when needed.
48% believe that corruption is pervasive in the legal system.
46% would not report corruption due to belief that the corrupt individuals would not be punished.
45% paid bribes in the preceding year
39% consider prevalent tax evasion to be a major problem.
25% trust Lithuanian legal system
10% trust Lithuanian parliament

Summary

Lithuania ranked 38th out of 176 countries in the 2016 Corruption Perception Index published by Transparency International (rising from 52nd place in 2009). 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 to be widespread and a major problem. In surveys of Lithuanian business people, corruption is highlighted as the main issue prohibiting economic development and international competitiveness. An investigation by Lithuanian government revealed that 46% of Lithuanians would not even consider reporting corruption due to resignation that the corrupt individuals would not be punished. Lithuania has established a hotline for reporting corruption, but no major crimes have been reported in the first 5 years of its operation.

Tax evasion is prevalent in the Lithuania and total tax revenues (inc. social security contributions) was at 27.5% of GDP in 2012, the lowest in the European Union. According to Lithuanian president Dalia Grybauskaitė, Lithuanian parliament's unwillingness to combat corruption is a major issue in the fight against corruption. An anti-corruption program was introduced by the government in 2011–2014.

Annual survey done by Special Investigation Service (STT) revealed that 45% of Lithuania's citizens paid bribes in 2014. Lithuania's shadow economy was estimated to be 29% of the GDP in 2012. Society's trust in the political and legal system is low overall, a survey in 2015 showed that 25% of citizens trusted the Lithuanian legal system and 10% trusted the national parliament, Seimas. An international Gallup study found that 90% of Lithuanians believe that corruption is widespread in Lithuania's government. A study by Freedom House in 2013 claimed that corruption remained widespread in Lithuania and politicians regularly attempted to influence or undermine judicial decisions, compromising the independence of the courts. Despite solid judicial base, Lithuania’s law enforcement is very weak according to independent assessors.

Impunity from corruption

There are numerous examples, recent and past, which strongly support that it is rare to be punished for corruption charges in Lithuania. In most cases, corrupt officials don’t receive any penalties. Even high-profile cases, which receive much media 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 former director of the Lithuanian National Opera and Ballet Theatre, had amassed significant wealth despite a meager 2000 EUR monthly salary. His assets included large areas of land, several houses and an apartment, as well as real estate in Altea, Spain. Kevišas had previously been involved in expensive and scandalous renovation of Lithuanian National Opera and Ballet Theatre. 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 . 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. Public procurement deals are still won by companies with no employees or companies on the "black list".
  • 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. In 2012, public servants involved in the toilet's procurement received prison sentences for recklessness, malfeasance, misuse of power and document falsifications. In 2014, all public servants suspected of corruption were cleared of charges and received compensations higher than their annual salary.
  • In 2017, Rasa Kazėnienė revealed that Lithuanian prison procurement contracts are always won by the same handful of companies and some items are bought for prices up to 175 times higher than the market price. Lithuanian STT refused to start an investigation. Rasa went on the record with 15 min about direct and indirect threats which followed her revelations as well as circulating rumors that she will "be dealt with", persistent stalking, and flood of complaints against her.

Lobbying in Lithuania

Lithuania has a large number of shaddow lobbyists, some of whom are at the same time employed in the Lithuanian parliament. A study by 15 min revealed that many lobbying organisations are using governmental real estate in prime locations at no cost. There is very little insight in the sector, as there are no reporting or control regulations. Lobbying is widely spread and particularly common in sectors related to energy, farmaceuticals, construction, public healthcare and alcohol. Illegal conduct such as bribery is common. Lithuanian parliament has been unwilling to regulate lobbying.

Famous cases

Alcohol box money case

In May of 2016, Masiulis alcohol box money case shook Lithuania. Eligijus Masiulis, leader of the Liberal Movement, a 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. MG Baltic, a Lithuanian investment firm, is suspected of giving the bribe. During a house search, another 250 thousand euros in cash were found in Masiulis apartment. In September 2017, the Liberal Movement and Labour Party were additionally named as suspects in the continuing investigation. As of November 2017, no charges have been pressed against Masiulis.

Kaunas golden toilet case

In 2009, municipality of Kaunas (led by mayor Andrius Kupčinskas) converted 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. 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. 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 of a lengthy anti-corruption investigation. Municipality even considered to demolish the building. In 2012, public servants involved in the toilet's procurement received prison sentences for recklessness, malfeasance, misuse of power and document falsifications. In 2014, all public servants suspected of corruption were cleared of charges and received compensations, which pushed the total construction cost to 352'000 euros.

  • Kaunas "golden toilet" Kaunas "golden toilet"

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) and Lithuania's ministry of culture declared the building ruin to be a national treasure freezing Lidl's plans in the process. There have been speculations and allegations that such actions were a covert attempt to extort bribes. After a public dispute, where Lidl placed formal complaints to various branches of Lithuanian government, including to Lithuania's president, and after several rounds of legal battles, Lidl settled the case out of court in early 2017.

Gallery

Abandoned former police headquarters in Vilnius, which were later declared to be Lithuanian architectural treasure.

Examples post-2016

  • In 2016, a Lithuanian public energy company came under fire for purchasing supplies well above the market prices. As of September of 2017, no charges have been brought against any employees of the company.
  • In 2016, ŽŪMPRRA, an agency providing food support to the Lithuania's poor and financed by the EU bought food supplies significantly above the market price.
  • In 2016, several politicians in Kaunas, Lithuania's second largest city, were sued by the new city administration for having fictional employment - receiving large salaries without ever coming to work.
  • 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.
  • 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 favoring a company managed by his son.
  • In early 2017, a scandal erupted when newspapers uncovered that Gintautas Kėvišas, a director of the Lithuanian National Opera and Ballet Theatre 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. Kevišas was involved in scandals surrounding an expensive renovations at the theatre. He was dismissed from his position, although, as of September 2017, there have not been any charges laid against him.
  • In 2015, „Start Vilnius“, a municipal agency tasked with attracting investment, allowed one of its employees to claim a favourable plot of land in Vilnius. In 2016, the same agency was again accused of handing over a large plot of land in central Vilnius to a private company for 15 000 EUR.

Examples pre-2016

  • Arturas Zuokas, former mayor of Vilnius was convicted for trying to bribe a fellow politician. Criminal record was later removed, although the Zuokas was not declared innocent.
  • In 2004, former Lithuanian president 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 ownership rights to people close to Paksas
  • Lithuania is a major receiver of EU funding and there have been several high profile cases of EU funding embezzlement
  • There are suspicions that project to close Ignalina Nuclear Power Plant involves significant embezzlement and money laundering

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