Some Lithuanian municipalities still fail to address risks in mayoral fund spending

A number of Lithuanian municipalities have not fully eliminated corruption risks in the use of mayoral discretionary funds and reserve allocations, the Special Investigation Service (STT) reported on Thursday.

While most municipalities have taken steps to improve transparency, some have yet to remove identified risks or implement all recommendations, the anti-corruption agency found.

According to the STT, the municipalities of Vilnius city and district, Kaunas city and district, Alytus, Palanga, Joniškis, Pakruojis, Panevėžys, Šiauliai, Vilkaviškis, and Zarasai have addressed the agency’s concerns by revising legal acts to strengthen justification, oversight, and transparency in the use of mayoral reserve funds.

Kėdainiai and Kelmė districts implemented the recommendations only partially. Meanwhile, Druskininkai and Klaipėda municipalities continue to face issues, including unclear criteria for compensation allocation, insufficiently detailed decision-making procedures, and potential for arbitrary decisions, the STT noted.

Regarding mayoral discretionary funds, the municipalities of Kaunas city and district, Elektrėnai, Marijampolė, Anykščiai, Jurbarkas, Kėdainiai, Klaipėda, Mažeikiai, and Trakai have either addressed the STT’s concerns or plan to do so. However, Švenčionys district and Vilnius city have not provided any information on implementing the recommendations.

The STT did not rule out applying “additional anti-corruption measures” in the future if compliance remains insufficient.

Last September, the agency conducted a corruption risk assessment in Tauragė, Kretinga, Telšiai, Širvinta, and Šiauliai districts, focusing on the allocation and use of mayoral reserve funds. Tauragė and Kretinga implemented all recommendations, Telšiai is still planning to do so, while Širvinta and Šiauliai only partially complied. The STT extended monitoring for these three municipalities, with a follow-up evaluation scheduled in one year.

In previous random assessments, the STT found that municipalities lacked sufficient transparency, justification, and oversight in the use of mayoral reserve funds. Criteria for allocation and spending were not always clearly regulated, public reporting was insufficient, and some decisions could be made with excessive discretion. Additionally, funds intended for representation expenses were not always properly separated from other expenditures and were occasionally misused, such as for grants or event financing.