EU funds allocated to the Lithuanian PM's sister-in-law's business are being used for purchases from the PM's own company.
In a series of financial investigations, Lithuanian Prime Minister Gintautas Paluckas has found himself at the centre of a controversy involving two companies: Dankora and Garnis.
Dankora, a company based in the Klaipeda District, received approximately €173,000 in EU subsidies last year under the LEADER program for expanding the infrastructure for charging electric vehicles and boats in the village of Drukiai. The company is owned by Paluckas’ sister-in-law, Virginija Paluckiene.
Interestingly, Dankora launched a tender to purchase battery systems with two inverters, and the only company that won the tender was Garnis. This company is co-owned by Paluckas and Mindaugas Milasauskas.
This arrangement has raised serious concerns of a conflict of interest and the misuse of European Union subsidies. Investigators from Lithuania’s Financial Crime Investigation Service (FNTT) raided Dankora’s offices as part of a pretrial probe into suspected credit fraud related to these transactions.
Additionally, the Special Investigation Service (STT) is also examining Paluckas’ past business dealings, including his links to companies and real estate.
Following public scrutiny, Dankora announced the return of the EU funds, citing family peace of mind, though it vowed to continue the project with private funds. Parliamentary and public pressure over these allegations ultimately led to Paluckas’ resignation as Prime Minister on 31 July 2025. He denied wrongdoing and expressed intent to defend his honor as investigations continue.
Further investigations have revealed that Garnis received a €200,000 soft loan from the national development bank ILTE. Questions have been raised as to whether the funds from this loan have been illegally used to the benefit of Emus, another company co-owned by Paluckas and Milasauskas.
The FNTT is also looking into the Garnis case in response to a journalistic investigation, while the Chief Official Ethics Commission is carrying out a separate investigation whether Paluckas should have recused himself when the government made decisions regarding ILTE.
Investigative journalism centres such as Siena and Laisvės TV, along with mainstream media outlets like 15min.lt and LRT, have extensively reported on and investigated these overlaps between Paluckas’ business stakes and public procurement.
The Special Investigation Service is also carrying out a separate probe into loans, real estate purchases, and ties to businessman Darijus Vilcinskas in response to another investigative report. These revelations have cast a shadow over the Prime Minister’s tenure and raised questions about the transparency of public procurement processes in Lithuania.
- The involvement of the Prime Minister Gintautas Paluckas in the business realm extends beyond Dankora and Garnis, as investigations also scrutinize his past financial dealings, including his ties to other companies such as Emus.
- The overlap between Paluckas' business interests and public procurement processes in Lithuania has been a topic of interest for numerous investigative journalism centers, like Siena and Laisvės TV, raising questions about the transparency of such processes in the realm of politics and general-news.
