Latest news with #Garnis
Fox News
31-07-2025
- Business
- Fox News
European prime minister resigns after protests over past financial dealings
Lithuanian Prime Minister Gintautas Paluckas resigned on Thursday following protests in the country's capital over investigations into his alleged business dealings. "Gintautas Paluckas called me this morning and informed me of his resignation," Lithuanian President Gitanas Nausėda told reporters, according to Lithuanian National Radio and Television (LRT). Nausėda also said Paluckas made the right choice and welcomed the decision. Nausėda recently gave Paluckas two weeks to decide whether or not to stay in his position. "The president has asked the prime minister to either give a reasoned answer to the questions raised by the public in the next two weeks, or to consider seriously his further options as prime minister," presidential adviser Frederikas Jansonas told reporters on July 24, according to LRT. The prime minister's resignation also comes after a smaller party threatened to exit the country's ruling coalition unless Paluckas stepped down from his position. After media outlets began publishing investigations into Paluckas' business and financial dealings, Lithuania's anti-corruption and law enforcement agencies launched probes of their own, according to the Associated Press. One of the cases against him is more than a decade old. In 2012, Paluckas was convicted of mishandling the bidding process for rat extermination in Vilnius, where he was serving as the director of the city's municipality administration, the Associated Press reported. However, it has been revealed that he did not pay a chunk of the nearly $20,000 fine. A more recent scandal involved a €200,000 ($228,777) subsidized loan that Garnis, a company Paluckas co-founded, received after Paluckas was already serving as prime minister, according to LRT. The outlet added that Lithuania's Chief Official Ethics Commission is investigating the loan. Garnis was also linked to a more recent scandal involving the prime minister in which Dankora — Paluckas' sister-in-law's company — received EU funding and used it to purchase goods from Garnis. However, according to LRT, public outcry pushed Dankora to return the funds. Paluckas denies any wrongdoing and claims the criticism is part of a "coordinated attack" by his political opponents, according to the Associated Press. The prime minister's resignation puts Lithuania in a precarious position, as it comes just before Russia and Belarus hold joint military exercises. Paluckas' whole cabinet is expected to resign as well, possibly leaving the Baltic country without a functioning government just weeks ahead of the Russian-Belarusian exercises, according to the Associated Press. However, this may not impact Lithuania's foreign policy, as Nausėda, who represents the country on a global scale, has been an ardent supporter of Ukraine during its years-long war with Russia.
DW
31-07-2025
- Politics
- DW
Lithuanian PM Gintautas Paluckas quits amid corruption probe – DW – 07/31/2025
The Lithuanian premier Gintautas Paluckas has stepped down following public protests and mounting scrutiny over his business ties, just months after taking office in a coalition government. Lithuanian Prime Minister Gintautas Paluckas resigned on Thursday amid growing pressure over investigations into his business dealings, which sparked public protests in the capital demanding he step down. Paluckas, a member of the Social Democratic Party, took office late last year after helping to form a three-party coalition government following October's parliamentary elections. President Gitanas Nauseda announced Paluckas's resignation to the media on Thursday morning, with Paluckas later explaining his reasons. "I informed the president about an hour ago that I took the decision to resign from my duties as the prime minister," Paluckas said in a statement, adding that he would also leave his post as the head of the Social Democratic party. "Despite my decision to leave my current duties, I will continue to defend my honor and dignity and I'm waiting for the conclusions of the investigations, which I'm sure will separate the facts from insinuations," he said. Several news outlets published reports in July detailing alleged misconduct linked to both past and current ventures by Paluckas. The revelations prompted anti-corruption and law enforcement agencies to launch formal investigations. In a major blow to his credibility, it emerged that Paluckas never paid a large part of a €16,500 ($19,039) fine tied to a case known as the "rat poison scandal." To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video He was convicted in 2012 of abusing his position while overseeing Vilnius' rat extermination contract bids. Lithuania's top court found that he had illegally favored the highest bidder. Although sentenced to two years in prison, the term was suspended and he was never jailed. Paluckas, leader of the Social Democratic Party, has denied wrongdoing in his business affairs and called the scrutiny a "coordinated attack" by political rivals. He resigned before opposition lawmakers could initiate impeachment proceedings. Earlier on Thursday, Lithuania's Financial Crimes Investigation Service searched the offices of Dankora, a company owned by Paluckas' sister-in-law, local media reported. Dankora allegedly used EU funds to buy battery systems from Garnis, a company partly owned by Paluckas himself. The search follows earlier reporting from Lithuanian investigative journalists, who revealed in May that Garnis had also received a subsidized state loan while Paluckas was already serving as prime minister. Lithuania's entire cabinet is now expected to step down following Paluckas's resignation, raising concerns of a leadership gap just weeks before Russia begins joint military exercises with Belarus. Coalition talks to form a new cabinet are expected to begin shortly. Despite the shakeup, the country's foreign policy is not expected to shift. President Nauseda, elected independently, remains Lithuania's key voice on the global stage and has been one of Ukraine's strongest backers in its war against Russia.
