Higher transparency standards needed for parties using public funds, says election commission chief

The head of Lithuania’s Central Electoral Commission (VRK) has called for stricter transparency standards for political parties that use state budget funds, following a Supreme Administrative Court ruling in the case of the Nemuno Aušra party.

Lina Petronienė, chair of the VRK, said the court’s decision underscores the need for higher transparency in all financial operations involving public funds, which must be supported by proper documentation.

“This ruling is important in shaping legal practice. The court clearly stated that all financial operations of political parties related to the use of public funds must meet higher transparency standards and be backed by proper records,” Petronienė said in a VRK statement.

The court also highlighted gaps in current legislation. While the law prohibits political organisations from distributing assets or funds to their members, it does not provide penalties for individuals who receive such funds unlawfully.

“Therefore, this ruling indicates that legal amendments are needed regarding the unlawful transfer of a political organisation’s funds to its members,” Petronienė noted.

In April, the VRK submitted proposals to the Seimas Anti-Corruption Commission to amend legal acts, including a requirement for political organisations to report signed contracts within 20 working days. The commission believes this would help identify potential violations more quickly.

On Tuesday, the Supreme Administrative Court upheld the VRK’s February decision that Nemuno Aušra had misused state budget funds, submitted false data in financial reports, and grossly violated the Law on Political Organisations. The party was found to have improperly used state funds in car rental agreements with its members and failed to report nearly €50,000 in operational expenses and liabilities.

The court also found that the party transferred part of its state-allocated funds to its leader without proper financial justification, undermining transparency in the use of public funding for political parties.

However, the court overturned the part of the VRK’s decision requiring party leader Remigijus Žemaitaitis and MP Daiva Petkevičienė to return the unlawfully transferred funds to the party’s account, stating that the VRK lacks the authority to enforce restorative measures for such violations.

Reporting by LRT.