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Corruption risks were identified in providing support to municipalities


The Special Investigation Service (STT), after analysing the risks in the health care system due to public procurement and donors, checked whether similar risks exist in other areas of public administration - municipalities. Anti-Corruption Intelligence Survey conducted by STT has identified cases where legal entities providing support to municipalities of the Republic of Lithuania later win their public procurements.

The study found that in 2015–2017, 1 251 legal entities (not in the group of economic operators) won public procurements organized by Lithuanian municipalities for almost 1.6 billion euros. During the same period, 1 658 legal entities allocated support of over EUR 11 million to municipalities.

In 2015–2017, 146 winners of municipal public procurements proclaimed by municipal administrations, allocated support of more than 405 thousand to municipalities and won over EUR 486 million of public procurements’ values. During the analysis, was found that most of the support from the winners of the public procurements were provided to Marijampolė city, Kėdainiai region, Kaunas city and Telšiai region municipalities.

Support providers during 2015–2017 has won public procurements for EUR 316 million in Kaunas City municipality, for more than EUR 17 million in Marijampolė city municipality, more than EUR 12 million in Šilutės region municipality.

It should be noted, that in 15 out of 60 municipalities, more than 50% of the total value of these municipalities' public procurements were won by the legal entities, which had provided support to these municipalities. The biggest part of public procurements tenders (by value) were won by supporter in Marijampolė city (87%), Neringa city (87%), Kupiškis region (81%) and Rietavas (80%) municipalities.

In 2015–2017, almost 200 cases were identified when legal entities won the public procurements proclaimed by Lithuanian municipalities and provided the support to them. It was noted that about 75 percent in such cases, the employees of legal entities, were related with the employees of municipal administrations by the family and/or marriage.

“The results of the analytical study showed that corruption risks related to public procurement and support provision exist not only in Lithuanian hospitals, but also in Municipalities. A situation when small proportion of the legal entities that makes up the public procurements received a significant part of the value of the public procurements can be seen as a corruption risk factor. Such situation should encourage a comprehensive assessment of the current situation and take measures to ensure transparency”, says Žydrūnas Bartkus, director of STT.

The results of the survey will be presented to the State decision-makers and other institutions within their competence. In the future, STT also plans to re-perform the analysis of the situation and inform the public about its results.

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