Lithuanian political party loses €241,000 in state funding over car rental scheme

The Lithuanian Central Electoral Commission has stripped the political party Nemuno aušra of €241,000 in state funding for six months after it violated financing rules by renting cars from its own members, public broadcaster LRT reports.

The penalty—the minimum possible for a “serious violation”—follows an investigation into the party’s rental agreements with MP Remigijus Žemaitaitis and colleague Daiva Petkevičienė. The commission found that Nemuno aušra used state funds to pay for their personal vehicles without justifying the costs or proving the cars were used for party activities.

The party rented Žemaitaitis’s Land Rover Range Rover Sport for €3,176.47 per month and Petkevičienė’s Land Rover Defender for €2,235.29 per month, totaling €49,559.48 in unreported expenses. Payments were made only after receiving state subsidies, and rental contracts were submitted late, following an audit.

Žemaitaitis must now repay €26,776.45, while Petkevičienė owes €15,349.11. The commission also noted that Žemaitaitis’s vehicle was simultaneously leased to a law firm and used for parliamentary work, with fuel costs covered by taxpayer-funded allowances.

Under Lithuanian law, political parties cannot distribute assets or funds to members. The forfeited €241,000—equivalent to half a year’s state funding—will remain unallocated. The commission’s 12 members split on the penalty, with seven voting for the six-month suspension and five advocating a one-year ban.

State funding for parties is tied to election performance. In this distribution cycle, covering the 2023 municipal and 2024 parliamentary/EU elections, the Social Democrats received the highest allocation (€662,000), followed by the Homeland Union (€612,000) and the Farmers and Greens Union (€258,000).