The Prime Minister announced that he had already contacted the ethics watchdog himself but did not see any potential conflict of interest in this situation.
„Today, I contacted the Supreme Ethics Commission (VTEK) to clarify whether there are any doubts or recommendations regarding the reconciliation of public and private interests.
I have not violated the provisions of the law above and have declared my shares in the company by the established procedure. I also have several comments on some of the facts or interpretations mentioned in the investigation.
I would like to say that I have not influenced ILTE in any way, whether in writing, verbally, formally or informally, regarding the loan,“ Paluckas assured at a specially organised press conference.
According to the Prime Minister, the company applied to ILTE by the established procedure and standard conditions, so all decisions were made by ILTE's procedures.
„I have no further information on this matter, as I am not involved in the company's economic and management activities, as required by the Law on Joint Stock Companies, „ the Head of Government explained.
When asked whether he should have given up his shares after becoming Prime Minister, Paluckas said he did not think so. He also stated that he did not see any conflict of interest in this situation.
„I am permitted to hold shares by the law. I am required to declare my shares in accordance with the established procedure for both public and private interests. However, I am not involved in the activities, economic management or administration of these companies. I have said this many times before, and I am repeating it now.
In general, I do not see a conflict of interest, as the information about the shares I hold is publicly available and has been disclosed by established procedures. Meanwhile, attempts to link my current position with alleged influence in the allocation of funds are far-fetched.
I have never exerted such influence and do not intend to do so, „the Prime Minister emphasised.
„No,“ Paluckas replied briefly when asked if he had considered resigning.
The Prime Minister also made it clear that the company does not intend to repay the loan.
'Everyone is equal before the law – no influence has been exerted, no violations have been committed, so now I have no basis for saying that you should or should not repay anything,' said Paluckas.
Following the commotion, the head of Government has already communicated with another shareholder of the company. According to Paluckas, the latter is surprised by the situation.
„Neither he nor the company's managers have received any questions, „ said the Prime Minister.
Paluckas claims that false information is currently being spread that both companies manufacture the same product and that the division of the companies is artificial and aimed at gaining benefits.
What happened?
A joint investigation by Laisvės TV and the investigative journalism centre Siena, published on Wednesday, revealed that Garnis, a company established last year and controlled by Prime Minister Paluckas, received a EUR 200,000 loan from the national development bank ILTE (formerly Invega). It is alleged that the loan was granted to Paluckas while he was already serving as Prime Minister.
The investigation found that the loan to the Prime Minister's company was granted under the Startuok programme for young small and medium-sized enterprises. It is emphasised that Paluckas controls another company, Emus, which, according to data from the end of 2023, has more than EUR 1.7 million in undistributed profits.
The investigation states that this company is not eligible for preferential ILTE loans for young businesses, which is why the EUR 200,000 loan was granted to Garnis, a company established only last year and has not yet submitted its financial statements to the Register Centre.
As announced, a meeting of Garnis shareholders was held on 30 December last year, at which Paluckas and his partner, Mindaugas Milašauskas, agreed to increase the authorised capital to EUR 40,000 by issuing new shares and acquiring shares in proportion to their existing holdings. Paluckas, who was already serving as Prime Minister at the time, acquired 49% of the shares.
According to the investigation, in the autumn, the authorised capital amounted to EUR 10,000, which did not meet the minimum requirements for obtaining a loan.
The Prime Minister himself told journalists that he was not involved in the activities of Garnis, which had received the loan and saw no reason to recuse himself from decisions related to ILTE.
Paluckas confirmed in December of last year, while already heading the Government that he had participated in a meeting of his company's shareholders, the aim of which was to secure more funding from ILTE. However, he insisted that he saw no conflict of interest in this situation.
Although the Prime Minister told journalists that Garnis had applied for the loan last summer, ILTE itself stated that the loan application was received in November of the previous year.
This means that the decision was made a few days after the former chair of the Social Democratic Party, Vilija Blinkevičiūtė, announced that she would not be running for Prime Minister and named Paluckas as her successor. The most critical decisions were made while Paluckas was already in office.
The investigation emphasises that after Garnis had already received a EUR 200,000 preferential loan, the Prime Minister not only spoke publicly about ILTE as an opportunity to finance small and medium-sized businesses but also took decisions related to the national bank himself.
The investigation states that in February, the Government submitted amendments to the law directly regulating ILTE's activities to the Seimas. In March, the cabinet led by Paluckas approved borrowing limits for central government entities, including limits for ILTE Bank.
It is added that decisions regarding ILTE are also made by the bank's founder, the Ministry of Finance, and therefore by the Minister of Finance, Rimantas Šadžius, who reports to the Prime Minister.
According to the Senior Civil Service Ethics Commission (VTEK), Paluckas also owns shares in Triden Solo Tarim, a company registered in Turkey that invests in agriculture.
In October, Paluckas, who was a candidate for Prime Minister at the time, assured that he did not intend to give up his shares in several businesses while in office. However, the politician also emphasised that he would recuse himself from voting in the Seimas or the Government if a conflict of interest arose.