Lithuanian Electoral Chief: Higher Standards Needed for Parties Using Public Funds

Political parties that utilize state budget funds must adhere to higher transparency standards, according to Lina Petronienė, the chief of Lithuania's Central Electoral Commission (VRK).

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This court decision is important for shaping practice. The court clearly stated that all financial operations carried out by political parties related to the use of public funds must be subject to a higher standard of transparency and must be based on proper documents.

Petronienė's remarks followed a decision by the Lithuanian Supreme Administrative Court concerning the "Nemuno Aušros" party. The court emphasized that all financial operations involving public funds by political parties require a higher level of transparency and must be supported by proper documentation. The ruling also pointed out gaps in existing legislation, particularly the absence of sanctions for individuals who illegally receive funds from political organizations, despite laws prohibiting the distribution of party assets and funds to its members.

In response to these issues and to promote greater transparency, the VRK submitted proposed legal amendments to the Seimas Anti-Corruption Commission in April. One key proposal is to mandate that political organizations disclose information about their contracts within 20 working days, which is expected to facilitate the quicker identification of potential violations.

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Therefore, this court decision indicates that amendments to the law are needed regarding funds illegally transferred by a political organization to its members.

The Supreme Administrative Court upheld the VRK's earlier decision that the "Nemuno Aušros" party had misused state budget allocations, provided false financial information, and grossly violated the Law on Political Organizations. The court found that the party improperly used state funds by entering into car rental agreements with its members and failed to report nearly 50,000 euros in operating expenses and liabilities. The court also noted that the party transferred some state budget funds to its leadership without a clear accounting basis, distorting the transparency of public fund usage.

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The court found that the party had improperly used state budget funds by entering into car rental agreements with its members.

However, the court overturned the part of the VRK's decision that required the party's chairman, Remigijus Žemaitaitis, and parliamentarian Daiva Petkevičienė to return illegally transferred funds to the party's account. The court stated that the VRK does not have the authority to enforce restitution for violations.

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The court's assessment was that the party transferred part of the state budget allocations allocated to it to the party leadership without a specific basis for financial accounting.