Special Investigation Service Performance Report 2018

SPECIAL INVESTIGATION SERVICE OF THE REPUBLIC OF LITHUANIA ACTIVITY REPORT 2018

ANTI-CORRUPTION ENVIRONMENT IN LITHUANIA IN 2018

* CPI – Corruption prevention index * LMC – Lithuanian Map of Corruption * SGI – Sustainable governance indicator

place 38 28 place per points per cent 41 59 cent 49 states 52 per surveyed 38 cent per cent per 34 25 cent

per 8 cent

2018 2018 2018 2018 2018 2018 2018 2018 CPI LMC LMC LMC LMC LMC LMC LMC Would not give Would report Had to give Prevalent Prevalent Prevalent Accountability a bribe a corruption a bribe in corruption trade in passing of of the public case the course situation when influence legislation governance a political party of the past promises to pass favouring 12months a favourable individual decision if the groups of businessman interests grants a ﬁnancial support CORRUPTION RISKS IN SELF-GOVERNANCE

55 cases 461 offences 236 persons MAIN CAUSES OF CORRUPTION IN SELF-GOVERNANCE

Politicisation Conflict of Nepotism interest Average intensity Every 5th employee Every 4th employee Every 9th employee of 12 per cent of winners of of nepotism risk in of Lithuania's municipal of Lithuania's municipal Lithuania's municipal municipal public procure- Lithuania's municipal administrations is administrations is institutions and entities ments rendering services administrations is related by family links a member of is a member of a to municipalities accounted 18 per cent a political party political party for one third of the total value of public procurement – EUR 483.3 million

MAIN ACTIVITIES OF STT IN 2018

ANTI-CORRUPTION ANALYTICAL CRIMINAL CORRUPTION ADMINISTRATION EDUCATION AND ANTI-CORRUPTION PROSECUTION PREVENTION AREA INFORMATION

An analysis of the Identified 380 offences 74 legal acts or draft 79 per cent of lectures 0.11 per cent of the prevalence rate of the to the civil service and legislation assessed at and seminars were Lithuania's budget three main factors leading public interests own initiative related to high risk allocated to the perfor- to corruption (nepotism, sectors mance of the STT favouritism and conflict Suspicions were raised 62 per cent of recom- functions of interest) against 217 persons mendations implement- 58 per cent of anti-cor- ed, 27 per cent are being ruption events organised The lowest turnover of As a result of such The number of identi- implemented, 4 per cent at the initiative of the officials in the past three investigations, certain fied trade in influence implemented partially STT years – 3.3 per cent measures were taken to cases increased to 72 ensure complex elimina- Assessed 60 corruption Anti-corruption educa- Cooperation with 10 65 pre-trial investiga- prevention programmes tion area presented international anti-cor- tion of corruption risks tions completed in the fields of public of Lithuanian munici- during 5 foreign visits ruption institutions procurement, assistance palities and their implementation plans 101 cases of appearing Participation in 75 and conflict of interest on TV and radio shows legislative processes On the basis of investigations, new impetus was given to prevention and investigation of conflicts of interests

Contents

FOREWORD BY THE DIRECTOR ...... 7 ASSESSMENT OF CHANGES IN THE ANTI-CORRUPTION ENVIRONMENT IN LITHUANIA ...... 9 Lithuanian anti-corruption environment in the global context ...... 9 Anti-corruption environment in Lithuania ...... 11 Crime situation ...... 11 Results of sociological surveys ...... 12 International bribery ...... 15 CORRUPTION IN SELF-GOVERNANCE ...... 17 Corruption problems at municipal institutions ...... 17 Corruption status of municipality institutions ...... 17 The status of the anti-corruption environment at municipalities ...... 19 STT investigations at municipalities ...... 20 Reasons for corruption incidence at municipalities ...... 21 Nepotism ...... 21 Politicisation ...... 22 Conflicts of interests ...... 23 CRIMINAL PROSECUTION ...... 25 ANALYTICAL ANTI-CORRUPTION INTELLIGENCE ...... 29 PREVENTION OF CORRUPTION ...... 33 PUBLIC ANTI-CORRUPTION EDUCATION AND INFORMATION ...... 37 ADMINISTRATION AREA ...... 41 STT PRIORITIES IN 2019 ...... 47 ANNEXES ...... 49 ANNEX 1. Activities related to criminal prosecution, statistical indicators ...... 50 ANNEX 2. Activities related to analytical anti-corruption intelligence, statistical indicators ...... 54 ANNEX 3. Activities related to corruption prevention, statistica indicators ...... 56 ANNEX 4. Activity related to anti-corruption education and information of the society ...... 57 ANNEX 5. Activities related to the aministration area, statistical indicators ...... 58

FOREWORD BY THE DIRECTOR

For the Special Investigation Service of the Republic of Lithuania (hereinafter – STT, the Service) 2018 was a year of major changes. The Service started the year with a new version of the Law on the Special Investigation Service which in addition to a reviewed remuneration levels motivating the Service’s officers and preventing their turnover clearly identified four key lines of the institution’s activities. The new, fourth line of the Service’s operations, analytical anti-corruption intelligence, was singled out based on the analytical activities carried out by the Service, and added to their previous responsibilities of criminal prosecution, corruption prevention and anti-corruption education. During the past year, the Service also continued upgrading its operations, as it separated the anti-corruption education division, strengthened its criminal intelligence divisions, completed rotation procedures of several Service officers and significantly invested in the training of its personnel. While implementing changes within the institution, we also took into account the overall anti- corruption climate in Lithuania: we identified the main problems and initiated actions aimed at triggering badly needed changes in the area. Having established the persistent prevalence of corruption in Lithuanian municipalities, in 2018, we focused the Service’s criminal prosecution operations capabilities on investigating corruption at the self-governance level. With no change in the corruption perception index in Lithuania for the past four years and an insufficient involvement of the public sector in combating corruption, we drew up and presented to the public a new Corruption Prevention Model. In spring 2019, a new draft Law on the Prevention of Corruption will be submitted by the Service for consideration to the Seimas of the Republic of Lithuania. Having concluded that the coordination of corruption prevention in Lithuania is not sufficiently efficient, STT resolved to create a governmental commission headed by the Prime Minister to coordinate the fight against corruption and replace the inter-agency Commission headed by the Minister of Justice. Led by the belief that the most efficient anti-corruption investment is education in the area, we expanded the Service’s anti-corruption education capacities and set a target to develop an electronic anti-corruption training platform – these are only some of the objectives we were pursuing and found solutions to in 2018. Other results of the Service’s operations, the work carried out and assessment of the situation are presented to the reader in the current Annual Report, while this year’s main goal remains the same – committed, focused, bold and professional operations of the Service combating corruption with the coordinated and efficient involvement of both the public and the private sectors.

Žydrūnas Bartkus Director of the Special Investigation Service of the Republic of Lithuania

ASSESSMENT OF CHANGES ANALYTICAL ANTI-CORRUPTION IN THE LITHUANIAN CORRUPTION CRIMINAL PREVENTION ADMINISTRATION ANTI-CORRUPTION EDUCATION AND ANTI-CORRUPTION IN SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA INTELLIGENCE INFORMATION OF SOCIETY ENVIRONMENT KORUPCIJA BAUDŽIAMASIS KORUPCIJOS ADMINISTRAVIMO SAKOVIRUPCIJAVALDOJE PERSEKIOJIMASBAUDŽIAMASIS KOPREVENCIJARUPCIJOS ADMINISTRSRITISAVIMO SAVIVALDOJE PERSEKIOJIMAS PREVENCIJA SRITIS ASSESSMENT OF CHANGES IN THE ANTI-CORRUPTION ENVIRONMENT IN LITHUANIA LIETUVOS ANTIKORUPCINĖS APLINKOS POKYČIŲ VERTINIMAS LIETUVOS ANTIKORUPCINĖS APLINKOS POKYČIŲ VERTINIMAS STTSTT carrieskasmet out atlieka an annual Lietuvos assessment antikorupcinės of changes aplinkos in the pokyčių anti-corruption vertinimą environment tiek pasauli- ofniame LithuaniaSTT kontekste, kasmet in the tiek atliekaglobal valstybės context,Lietuvos viduje. as antikorupcinės well as domestically. aplinkos pokyčių vertinimą tiek pasauliniame kontekste, tiek valstybės viduje.

WGI corruption control – 70 WGI rule of law – 82 GCI transparency of the budget – 73 SGI prevention of corruption – 60 WGI corruption control – 70 GCI independence of the judiciary – 54 Integrity index – 78 TI corruption perception index – 59 WGI rule of law – 82 GCI transparency of the budget – 73 SGI prevention of corruption – 60 TI corruption perception index – 78 GCI independence of the judiciary – 54 Integrity index – 78 TI corruption perception index – 59 Corruption policy Legal system TI corruption perTrceptionansparenc index – 78y Legal system and accountabilityTransparency Corruption policy and accountability

TRACE MATRIX graft risk – 76 SGI quality of democracy – 79 FH media freedom – 79 RWB media independence index – 78 CGI burden of government regulation- 33 FH voice of democracy – 66 TRACE MATRIX graft risk – 76 SGI quality of democracy – 79 FH media freedom – 79 FH voice of democracy – 66 RWB media independence index – 78 CGI burden of government regulation- 33 Democracy Freedom of Anti-corruption Freedom of businessAn ti-corruptionenvironment Democracy the media business environment the media

Lietuvos antikorupcinė aplinka pasauliniame kontekste LLietuvosithuanian antikorupcinė anti-corruption aplinka environment pasauliniame in the kontekste global context InPagrindiniuose terms of the key tarptautiniuose international antikorupciniuoseanti-corruption ratings, reitinguose the performance Lietuvos rodikliai of Lithuania išlai- ko ilgametęPagrindiniuose itin nežymaus tarptautiniuose svyravimo antikorupciniuosetendenciją. „Transparency reitinguose International“ Lietuvos rodikliai atliekamame išlai- maintainsko ilgametę its itin long-term nežymaus trend svyravimo of just marginaltendenciją. fluctuations. „Transparency A CorruptionInternational“ Perception atliekamame Index 2018tyrime1 (hereinafter „Korupcijos – suvokimoCPI) survey indeksas, carried tyrime2018“1 (toliau„Korupcijos – KSI) suvokimo Lietuvai buvo indeksas, skirti by2018“ Transparency1 (toliau – KSI) International Lietuvai buvo scored skirti Lithuania59 balai ir 5938 vietapoints, tarp making tyrime it vertinamų the 38th 59180 balai pasaulio ir 38 vietavalstybių. tarp tyrimeKalbant vertinamų apie glo- least180 pasaulio corrupt valstybių.among the Kalbant 180 countries apie glo- surveyedbalius ir regioninius globally. In vertinimus, terms of Lietuvos global baliusKSI rezultatas, ir regioninius kaip ir vertinimus, 2017 metais, Lietuvos išlieka andKSI rezultatas,regional ratings,kaip ir 2017 Lithuania’s metais, išliekaCPI, just6 balais like žemesnis in 2017, už remained ES vidurkį six – pointstarp 28 6ES balais valstybių žemesnis narių už Lietuva ES vidurkį užima – tarp 16–18 28 belowES valstybių the EU narių average, Lietuva with užimathe country 16–18 occupyingvietas. Tarp 16th-18th Baltijos valstybių places among lydere išliethe - vietas.ka Estija, Tarp o BaltijosLatvija vertinamavalstybių lydere balu mažiauišlie- nei Lietuva2. Pastebėtina, kad stebint rezultatus EUka Estija, 28. Among o Latvija the Balticvertinama States, balu Estonia mažiau nei Lietuva2. Pastebėtina, kad stebint rezultatus retainsnuo 2012 its metųleading Estijos position, ir Latvijos while KSILatvia padidėjo lags a 9point balais, behind o Lietuvos Lithuania – 5 balais.2. The rating history nuo 2012Pasaulio metų banko Estijos tyrime ir Latvijos „Pasauliniai KSI padidėjo valdymo 9 balais, indikatoriai, o Lietuvos 2017“ – 53 balais.korupcijos kontrolės since 2012 shows that the CPI of Estonia and Latvia increased by 9 points,3 while Lithuania srityjePasaulio Lietuva buvobanko įvertinta tyrime 70„Pasauliniai balų iš 100 valdymo – tai penkiais indikatoriai, balais mažiau 2017“ nei korupcijos praėjusiais kontrolės metais, gainedsrityje Lietuva five points. buvo įvertinta 70 balų iš 100 – tai penkiais balais mažiau nei praėjusiais metais, 8 balaisA ‘Worldwidežemiau nei ESGovernance šalių vidutinis Indicators vertinimas. 2017’3 survey by the World Bank scored Lithuania 8 balaisEkspertų žemiau vertinimunei ES šalių grįstame vidutinis Bertelsmano vertinimas. fondo „Tvaraus valdymo rodikliai“4 tyrime 70 pointsEkspertų out of vertinimu 100, representing grįstame a Bertelsmano drop by five fondo points „Tvaraus compared valdymo to the rodikliai“previous 4year, tyrime and eightkorupcijos points prevencija behind the įvertinta average 6ranking balais išof dešimties,the EU Member šis įvertis States. nekito nuo 2014 metų. Pras- korupcijostas korupcijos prevencija prevencijos įvertinta įvertinimas 6 balais yra iš dešimties,suprantamas šis kaipįvertis kliūtis nekito tvaresniam nuo 2014 demokratijos metų. Pras- tas korupcijos prevencijos įvertinimas yra suprantamas kaip kliūtis tvaresniam demokratijos 1 Access via the Internet: http//www.transparency.org/cpi2018 2 1 ThePrieiga Estonian internete: CPI https://www.transparency.org/cpi2018 increased by 2 point and was reported at 73, Estonia moved upwards by three steps to 18th place. The Latvian12 PrieigaEstijos CPI KSIinternete: remained įvertis https://www.transparency.org/cpi2018 išaugo unchanged, 2 balais atir 58siekia points, 73 balus, however, o skirta in the vieta global reitinge context pakilo its ranking trimis pakopomisdropped by į one18 vietą. place, Latvijos to 41st thisKSI year.2 3išliko Estijos toks KSI pat įvertis – 58 balai,išaugo tačiau 2 balais pozicija ir siekia pasauliniame 73 balus, o konteksteskirta vieta sumažėjo reitinge vienapakilo vieta trimis – Latvija pakopomis šiemet į 18 41 vietą. pasaulyje. Latvijos KSI išliko3 AccessPrieiga toks via internete: pat the – Internet: 58 http://info.worldbank.org/governance/wgbalai, http://info.worldbank.org/governance/wgtačiau pozicija pasauliniame kontekste sumažėjo viena vieta – Latvija šiemet 41 pasaulyje. 34 PrieigaTyrime internete:vertinama http://info.worldbank.org/governance/wg valstybių demokratijos būklė, politinių priemonių veiksmingumas ir valdymas, kaip pagrindinės tvarią 4demokratinės Tyrime vertinama valstybės valstybių raidą demokratijosužtikrinančios būklė, sritys. politinių Prieiga internete:priemonių http://www.sgi-network.org/2018/ veiksmingumas ir valdymas, kaip pagrindinės tvarią demokratinės valstybės raidą užtikrinančios sritys. Prieiga internete: http://www.sgi-network.org/2018/ 9

9 9 ASSESSMENT OF CHANGES ANALYTICAL ANTI-CORRUPTION IN THE LITHUANIAN CORRUPTION CRIMINAL PREVENTION ADMINISTRATION ANTI-CORRUPTION EDUCATION AND ANTI-CORRUPTION IN SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA INTELLIGENCE INFORMATION OF SOCIETY ENVIRONMENT

The expert-assessment based ‘Sustainable Governance Indicators’4 survey carried out

by the BertelsmannKORUPCIJA FoundationBAUDŽIAMASIS ranked the status of corruptionKORUPCIJO inS Lithuania at six pointsADMINISTR AVIMO out of ten,SA whichVIVALDOJ Ehas not PERSEKIOJIMASchanged relative to its level in 2014.PREVENCIJA This rather poor scoring of SRITIS corruption prevention is perceived as an obstacle to the more sustainable establishment of democracy in the country5. Six points is the minimum threshold beyond which a country is įtvirtinimuiattributed to5. theŠeši group balai of– thosetai minimali operating riba, most kurią of the peržengusi anti-corruption valstybė mechanisms yra priskirtina designed prie tų,to preventkuriose state veikia officials dauguma from antikorupcinių using their powers mechanizmų, for personal užkertančių gain. kelią valstybės tar- nautojamsMeanwhile, panaudoti the turimą countries galią assigned asmeninei the naudai highest gauti. corruption Tuo tarpu prevention valstybės, įvertintosscore are aukščiausiaischaracterised balaisby a mechanism korupcijos prevencijosensuring and srityje, involving pasižymi the public, integralumą legal and užtikrinančiu political levels. me- chanizmu,The sustainable kuris apimaoperation visuomeninį, of such mechanisms teisinį ir politinį ensures lygmenis. that the publicTvarus and šių privategrupių sectorsveikimas are efektyviaibuilt on the užtikrina principles sąžiningumo of good faith principais and integrity. grįstą viešąjį ir privatų sektorių. TyrimeThe ‘Sustainable „Tvaraus valdymo Governance rodikliai“ Indicators’ taip pat survey yra vertinamas also measures valstybių the efficiencyvaldymo efekty of state- vumas.governance. Lietuvai In this skirti category 7 balai, Lithuania o kaimyninės scored valstybės seven points, įvertintos with slightlyreikšmingai better geriau: performance Latvija įvertintadisplayed 9 bybalais the ir neighbouring atsiduria tarp countries,valstybių lyderiųscoring (1 nine vieta), points o Estija Latvia – reitingo ranked penktoje among pothe- zicijojeleading įvertintacountries, 8 balais.and Estonia ranked 5th with eight points. ThePastebėtina, ‘Transformation kad Bertelsmano Atlas, 2018’6 reportfondo byataskaitoje the Bertelsmann „Transformacijos Foundation movedindeksas, Lithuania 2018“6 onevienu position balu padidėjoupwards accordingbaudžiamojo to thepersekiojimo indicator užof pasinaucriminal- prosecutiondojimą tarnybine for abuse padėtimi of office. rodiklis. In Šisthis respectLietuvos Lithuania’s įvertis padidėjo ranking nuo increased 8 iki 9 frombalų iš8 points10 galimų, to 9 outataskaitoje of 10, in teigiamai general, theatsiliepta report commendedapie STT veiklos the performance rezultatus ofpolitinės STT in thekorupcijos area of combating srityje. political corruption.Savo ruožtu kitas tyrime anti- korupcinęAnother aplinką indicator vertinantis used rodiklisto assess – the antikorupcinė anti-corruption politika environment – nekito nuo– anti-corruption 2010 metų ir yrapolicy vertinamas – has remained 8 balais unchangediš dešimties. since Įvertis 2010, grindžiamas scoring 8tuo, points kad ofnors 10 Lietuvojepossible. yraThis įdiegti score visireflects būtini a situationintegralumo that mechanizmai,even though allantikorupcinės the necessary politikosintegrity diegimasmechanisms yra palaikomashave been put Vy in- riausybėsplace in Lithuania lygiu, bet and korupcija the implementation yra laikoma rimta of the problema anti-corruption tiek gyventojų, policy istiek supported verslo atstovų at the požiūriu,government o ypač level, problemiški corruption išliekais viewed sveikatos as a serious apsaugos concern sektorius both irby viešųjų citizens pirkimų and business sritis. Ataskaitojerepresentatives, kritiškai with įvertintas the health interesų care and kontrolės public procurement realus poveikis. sectors remaining particularly problematic.Gerojo Thevaldymo report principų commented stoka critically viešojo sektoriauson the actual institucijose impact of thelaikytina control esmine of interests. sis- temineA kliūtimi, lack of goodsiekiant governance sukurti ir principles išsaugoti tvariąin public antikorupcinę sector institutions aplinką valstybėsis considered mastu. to Vertinantconstitute nacionalinių an essential irsystemic vietos institucijų obstacle veikląin building tyrimuose and pabrėžiamosmaintaining institucijųa sustainable valdymo anti- problemos:corruption environmentneefektyviai valdomasat the state turimas level. The turtas assessment7, institucijos of the veikia performance neatskaitingai, of national trūksta and sprendimųlocal authorities pagrįstumo, identifies nėra problems pateikiama related užtektinai to institutional informacijos governance, apie įstaigų namely, ar įmonių inefficiently vyk- domąmanaged veiklą, assets pasiektus7, irresponsible rezultatus, actions valstybės by irthe savivaldybės institutions, įmonės lack of – galimailegitimacy politizuojamos in decision-8. making,Efektyvių insufficient baudžiamojo information persekioji on- the activities of institutions, companies or results moachieved, priemonių and thenepakanka possible tvariai politicisation antiko- of state and municipal companies8. rupcinei aplinkai užtikrinti, itin svarbus aktyvus viešojo sektoriaus įsitraukimas. Viešosios valstybės ir savivaldos ins- 4 The survey ranks the state of democracy, efficiency of political means, and governance as the main areas ensuring sustainable titucijosdevelopment turėtų of a democratic aktyviau state. vykdytiAccess via thesavo Internet: http://www.sgi-network.org/2018/ aplinkos5 According kontrolę, to the quality kokybišką of democracy korupcijos indicator the ‘Sustainable Governance Indicators’ survey scored Lithuania 8.12 prevencijąpoints. ir stiprinti savo atsparumą 6 Access via the Internet: https://www.bti-project.org/en/data/atlas/ korupcijai,7 Free Market Instituteį sprendimų of Lithuania, priėmimo 2018, Lithuanian ir Municipalities Index. Access via the Internet: https://www.llri.lt/ veiklostyrimai/lietuvos-savivaldybiu-indeksas-2018 stebėsenos procesus kuo plačiau 8 Access via the Internet: https://www.weforum.org/reports/the-global-competitveness-report-2018

5 Tyrime „Tvaraus valdymo rodikliai, 2018“ Lietuvos demokratija įvertinta 8,12 balo. 6 Prieiga internete: https://www.bti-project.org/en/data/atlas/ 7 Lietuvos laisvosios rinkos institutas, 2018 metai, „Lietuvos savivaldybių indeksas“. Prieiga internete: https://www.llri.lt/ tyrimai/lietuvos-savivaldybiu-indeksas-201810 8 Transparency International Lietuvos skyrius, 2018 metai, „Interesai valstybės ir savivaldybių valdomose įmonėse – kaip juos suvaldyti?“. Prieiga internete: https://www.transparency.lt/wp-content/uploads/2018/02/Interesai_valstybes_ir_savi- valdybiu_valdomose_imonese_tils.pdf

10 KORUPCIJA BAUDŽIAMASIS KORUPCIJOS ADMINISTRAVIMO SAVIVALDOJE PERSEKIOJIMAS PREVENCIJA SRITIS

įtvirtinimui5. Šeši balai – tai minimali riba, kurią peržengusi valstybė yra priskirtina prie tų, kuriose veikia dauguma antikorupcinių mechanizmų, užkertančių kelią valstybės tar- nautojams panaudoti turimą galią asmeninei naudai gauti. Tuo tarpu valstybės, įvertintos aukščiausiais balais korupcijos prevencijos srityje, pasižymi integralumą užtikrinančiu me- chanizmu, kuris apima visuomeninį, teisinį ir politinį lygmenis. Tvarus šių grupių veikimas efektyviai užtikrina sąžiningumo principais grįstą viešąjį ir privatų sektorių. Tyrime „Tvaraus valdymo rodikliai“ taip pat yra vertinamas valstybių valdymo efekty- vumas. Lietuvai skirti 7 balai, o kaimyninės valstybės įvertintos reikšmingai geriau: Latvija įvertinta 9 balais ir atsiduria tarp valstybių lyderių (1 vieta), o Estija – reitingo penktoje po- zicijoje įvertinta 8 balais. Pastebėtina, kad Bertelsmano fondo ataskaitoje „Transformacijos indeksas, 2018“6 vienu balu padidėjo baudžiamojo persekiojimo už pasinau- dojimą tarnybine padėtimi rodiklis. Šis Lietuvos įvertis padidėjo nuo 8 iki 9 balų iš 10 galimų, ataskaitoje teigiamai atsiliepta apie STT veiklos rezultatus politinės korupcijos srityje. Savo ruožtu kitas tyrime anti- korupcinę aplinką vertinantis rodiklis – antikorupcinė politika – nekito nuo 2010 metų ir yra vertinamas 8 balais iš dešimties. Įvertis grindžiamas tuo, kad nors Lietuvoje yra įdiegti visi būtini integralumo mechanizmai, antikorupcinės politikos diegimas yra palaikomas Vy- riausybės lygiu, bet korupcija yra laikoma rimta problema tiek gyventojų, tiek verslo atstovų požiūriu, o ypač problemiški išlieka sveikatos apsaugos sektorius ir viešųjų pirkimų sritis. Ataskaitoje kritiškai įvertintas interesų kontrolės realus poveikis. Gerojo valdymo principų stoka viešojo sektoriaus institucijose laikytina esmine sis- temine kliūtimi, siekiant sukurti ir išsaugoti tvarią antikorupcinę aplinką valstybės mastu. Vertinant nacionalinių ir vietos institucijų veiklą tyrimuose pabrėžiamos institucijų valdymo ASSESSMENT OF CHANGES 7 problemos: neefektyviai valdomas turimas turtas , institucijos veikia neatskaitingai,ANALYTICAL trūksta ANTI-CORRUPTION IN THE LITHUANIAN CORRUPTION CRIMINAL PREVENTION ADMINISTRATION ANTI-CORRUPTION EDUCATION AND ANTI-CORRUPTION IN SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA INTELLIGENCE INFORMATION OF SOCIETY sprendimų pagrįstumo, nėra pateikiamaENVIRONMENT užtektinai informacijos apie įstaigų ar įmonių vyk- domą veiklą, pasiektus rezultatus, valstybės ir savivaldybės įmonės – galimai politizuojamos8. Efektyvių baudžiamojo persekiojimo priemonių nepakanka tvariai antiko- Efficient criminal persecution rupcinei aplinkai užtikrinti, itin svarbus measures alone cannot ensure a sus- aktyvus viešojo sektoriaus įsitraukimas. tainable anti-corruption environment, Viešosios valstybės ir savivaldos ins- and an active involvement of the public titucijos turėtų aktyviau vykdyti savo sector cannot be overestimated. aplinkos kontrolę, kokybišką korupcijos Public and municipal authorities prevenciją ir stiprinti savo atsparumą should strengthen their environment korupcijai, į sprendimų priėmimo ir control, the quality of their corruption veiklos stebėsenos procesus kuo plačiau prevention and enhance their resistance to corruption, by including, as broadly as possible, the immediate beneficiaries – the residents 5 Tyrime „Tvaraus valdymo rodikliai, 2018“ Lietuvos demokratija– in their įvertinta decision-making 8,12 balo. and operational monitoring processes. 6 Prieiga internete: https://www.bti-project.org/en/data/atlas/ In its 2018 edition of the Global Competitiveness Report9 the World Economic Forum 7 Lietuvos laisvosios rinkos institutas, 2018 metai, „Lietuvos(WEF) savivaldybių scored indeksas“. Lithuania Prieiga 67.1 internete: points https://www.llri.lt/ and ranked 40th out of 140 states included in the survey. tyrimai/lietuvos-savivaldybiu-indeksas-2018 8 Transparency International Lietuvos skyrius, 2018 metai,This „Interesai represents valstybės air savivaldybiųdecline by valdomosetwo positions įmonėse from– kaip the rating of 2017, even though Lithuania juos suvaldyti?“. Prieiga internete: https://www.transparency.lt/wp-content/uploads/2018/02/Interesai_valstybes_ir_saviscored 0.7 points higher than in the previous year.- valdybiu_valdomose_imonese_tils.pdf An overview of the anti-corruption environment specifically affecting the ratings of the country’s competitiveness also concludes that some of the ratings fall behind the overall 10 ratings of Lithuania, such as the management of conflicts of interests (in the private sector the indicator is associated with the protection of minority investors), – rated 54th place and 60 points, independence of the judiciary – 55th place and 54 points; government regulation burden – 106th place and 33 points. The government regulatory burden in Lithuania is considered significantly heavier than in the neighbouring Baltic countries10, as according to this indicator during the accounting year Lithuania fell by nine positions. Significant bureaucratic burden upon businesses is considered a circumstance conducive to corruption – a serious incentive for businesses to pursue their objectives by circumventing formal and lengthy official procedures. An international survey of business executives about corruption and fraud11 carried out by the Ernst&Young audit company, in terms of prevalence of corruption in business ranked Lithuania in 22nd place among the 53 states included in the survey. A total of 44 per cent of business executives admitted that bribery and corruption practices were widespread in the country. The score has not changed much since 2017, when it was reported at 47 per cent.

Anti-corruption environment in Lithuania

Crime situation

The crime rate statistics for 2014–201812 show a decreasing trend in the number of recorded crimes and criminal offences against civil service and public interests, as during

9 In Latvia, the regulatory burden is scored at 3.3 points, the country in this respect ranking the 41st, and the respective score for Estonia is 4 points and the 30th position. 10 Access via the Internet: https://fraudsurveys.ey.com/ey-global-fraud-survey-2018/detailed-results/ 11 Access via the Internet: https://goo.gl/mAk1mr 12 Access via the Internet: https://goo.gl/mAk1mr

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2018 there were 26 per cent fewer such acts than in 2 0 1 7 (respectively, 564 and 76213, however, the scope of the change varied in respect of the different types of corruption offences. During the accounting period there were 66 per cent more offences of trade in influence14 and 14 per cent more abuse cases15 with fewer cases of bribery and graft – respectively, 56 per cent16 and 34 per cent17. This allows the conclusion that on the one hand the law enforcement institutions have considerably strengthened their capacities to identity and investigate the most severe and damaging corruption crimes; on the other hand, with the increasing public intolerance towards corruption and the strengthening internal control at law enforcement institutions, there have been fewer cases of minor corruption, and the number of bribery cases recorded by the police dropped from 40 (in 2017) to 4 (in 2018), as did the number of recorded graft cases (from 416 in 2017 to 265 in 2018). At this point, it is not, however, possible to conclude any more significant increase in the number of disclosed cases of trade in influence. This might be a result of both more efficient and focused performance of the Service when disclosing the cases of systemic corruption (as many as 37 cases of alleged trade in influence were investigated within the seven pre- trial investigations opened in 2018), and the changes in the pattern of criminal activities caused by the changes in the related circumstances – improved capacities of the law enforcement institutions to identify and disclose more ordinary forms of corruption.

Results of sociological surveys

The results of the annual public survey among residents, corporate executive and civil servants ‘The Lithuanian Map of Corruption’ carried out since 2018, showed a consistent trend of decreasing experience of corruption in the society. In 2018, 12 per cent of residents admitted they had, in the course of past twelve months, to give a bribe on at least one occasion, the indicator being 4 per cent lower than in 2016, and half of that four years ago. The indicator of corruption experience among civil servants in 2018 was 4 per cent18. The corruption experience among the business community that was rapidly declining in scope up until 2014, did not improve during the past four years: in the survey of 2018, 8 per cent of corporate executives admitted that their representatives had given a bribe in the course of the past 12 months19. A survey of the actual level of corruption among the public sector institutions showed a decline in the number of cases of extortion20, however, in the most problem areas, such health

13 2018 – 53, and in 2017 – 32 cases of trade in influence. 14 2018 – 53, and in 2017 – 93 cases of abuse of office. 15 2018 – 38, and in 2017 – 86 cases of bribery. 16 2018 – 337, and in 2017 – 511 cases of graft. 17 2016 – 6 per cent, and 17 per cent in 2014. 18 2016 – 5 per cent, 2014 – 6 per cent (it should be noted that in the period from 2001 until 2011, the share of businesses that admitted to having given a bribe varied from 12 per cent to 29 per cent). 19 The bribe extortion index shows the likelihood of demanding a bribe at a specific institution where citizens apply seeking to manage their business affairs, and the average bribe extortion index in 2018 was 0.07, as compared to 0.09 in 2016.

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care sector, the changes did not exceed the level of statistical tolerance21. Businesses are most exposed to bribe extortion risk in city and regional municipalities22. There are observable indications of decline in the scope of political nepotism with a smaller share of civil servants facing a situation when politicians promote recruiting members of their political parties to positions in the public sector23. Although the corruption experience among residents is on the decline, residents seem to be increasingly often using informal relations24. Every third resident admitted being prepared to take advantage of informal relations so as to be provided with the requested service faster or better25. A survey of the corruption perception index concluded that all groups of society welcome the changes in the scope of corruption in the country in the past five years: compared to the survey of 2016, fewer residents or corporate executives believe that the volumes of corruption in the country were growing26, while there is a significant increase in the number of residents, corporate executives and civil servants who believe that the scope of corruption has declined27. The survey group of respondents has expressed strong expectations regarding a continued decline in the scope of corruption in the future28. STT was most often referred to by residents (55 per cent) as the institution whose actions would considerably contribute to an actual decrease in the scope of corruption, and in this respect civil servants ranked STT the fourth (55 per cent)29. The perception of corruption by residents is partly shaped by the social circle they belong to, while more than

20 From the resident viewpoint the bribe extortion index at national hospitals and/or clinical hospitals was 0.35 in 2018, 0.4 in 2016, respectively, 0.23 and 0.32 at municipal and regional hospitals, and 0.32 and 0.36 at policlinics. 21 From the resident viewpoint the bribe extortion index at national hospitals and/or clinical hospitals was 0.35 in 2018, 0.4 in 2016, respectively, 0.23 and 0.32 at municipal and regional hospitals, and 0.32 and 0.36 at policlinics. 22 Extortion index – 0.2. 23 In 2018, 34 per cent of respondents faced the situation, i.e. 11 per cent less than in 2016. 24 In 2018, in order to avail of a public service faster or better some 17 per cent of respondents admitted to having taken advantage of their family relationships (12 per cent in 2016), useful acquaintances (24 per cent and 18 per cent in 2016). 25 34 per cent of residents admitted they would take advantage of their family relationships, and 36 per cent would take advantage of useful acquaintances. 26 As compared with the results of 2016, some 17 per cent fewer residents and 11 per cent of corporate executives negatively assessed the changes in the scope of corruption, while the opinions among civil servants changed only marginally considering the changes in the corruption scope insignificant (residents – 25 per cent in 2018 and 42 per cent in 2016, corporate executives – 12 per cent in 2018, and 23 per cent in 2016; civil servants – 9 per cent in 2018 and 14 per cent in 2016). 27 As compared to 2016, 11 per cent more residents, 12 per cent more civil servants and 7 per cent more corporate executives considered that the scope of corruption has declined in the course of the past five years (residents: 24.8 per cent in 2018, 14 per cent in 2016; civil servants: 61.7 per cent in 2018, and 50 per cent in 2016; corporate executives: 37.9 per cent in 2018 and 31 per cent in 2016). 28 28 per cent of residents (i.e. 10 per cent more than in 2016), and 40 per cent more of corporate executives (37 per cent in 2017), and 62 per cent of civil servants (by 6 per cent more than in 2016) believed that in the coming years corruption will decrease. 29 Civil servants in 62 per cent of instances referred to the Seimas of the Republic of Lithuania, 57 per cent cases referred to the Government of the Republic of Lithuania, and 55 per cent of cases designated law enforcement authorities.

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half of the residents (54 per cent) admitted to knowing at least one person who had given a bribe within the past 12 months, and 31 per cent admitted to knowing at least one person that had taken a bribe within the same period of time. It can be assumed that any indirect experience of corruption does affect the perception of the residents of the prevalence of corruption at the state level. Over the course of the past two years there has been some decline in the perception of corruption as a serious issue among residents and corporate executives30. The significance of corruption as an obstacle in developing own business declined to an even more tangible degree31. Corporate executives pointed nepotism and patronage as more serious obstacles for developing business. Although gradually decreasing, the share of residents, corporate executives and civil servants convinced that a bribe helps in resolving problems remains significant32. Although in general Lithuania does demonstrate expectations for a decrease in the scope of corruption, the perception of corruption among residents, business representatives and civil servants remains unequivocal. There is a general understanding that corruption is an obstacle, people are increasingly better informed on where to apply in order to report an alleged corruption case. Nevertheless, the possibility of using corrupt practices under some facilitating conditions is not entirely excluded, and the potential of engaging in anti- corruption activities has not been growing to any more significant degree. A total of 81 per cent of residents perceive corruption as an obstacle to public life, and 61 per cent of residents think that corruption prevents them personally from improving their living standards, 69 per cent of executives feel that corruption is an obstacle for business development, while the share of businessmen agreeing with the statement that ‘corruption’ facilitates inefficient public sector procedures thus helping business development has decreased by two thirds33. Furthermore, 23 per cent of corporate executives claimed that because of corruption their revenues were decreasing, proving that business suffering direct financial damage as a result damage. Despite the overall understanding that corruption causes damage, strictly anti-corruption attitudes have not yet become fully established in society. One in every three corporate executives admitted that, should the circumstances be conducive, they would give a bribe in order to solve their problems34; this was also true of one of every four civil servants35, and more than every second resident of Lithuania36.

30 Republic of Lithuania, and 55 per cent of cases designated law enforcement authorities. 31 Corruption is viewed as a serious issue in Lithuania by 40 per cent of Lithuanian residents (16 per cent less than in 2016, the estimate being the lowest since 2005), the same views were expressed by 30 per cent of civil servants (the estimate has not changed much since 2016), and 27 per cent of corporate executives (8 per cent less than in 2016, the lowest since 2005). 32 12 per cent of corporate executives indicated that corruption was a significant problem for the purpose of developing their business, the estimate being 9 per cent lower than in 2016. 33 63 per cent of residents believe that a bribe helps (5 per cent less than in 2016), 37 per cent of executives (11 per cent less than in 2016), and 24 per cent of civil servants (21 per cent less than in 2016). 34 Total 28 per cent of corporate executives agree with the statement. 35 1 per cent admitted they would give a bribe, and 20 per cent admitted they would give a bribe depending on the circumstances. 36 18 per cent of residents admitted they would give a bribe, and 40 per cent admitted they would give a bribe taking into account the circumstances.

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An analysis of the anti-corruption potential of the society also showed that before 2018, the determination to report a corruption case was gaining strength in all typical groups, however, from 2018 onwards the growth continued in the civil servant group only37. Notably, more than half of the residents were not sure where they should apply to report a corruption case; nevertheless, the level of awareness is growing38. The level of awareness among corporate executives did not demonstrate any significant changes, as 62 per cent of executives did know where to apply to report a suspected corruption case, and civil servants appeared as the best informed and fastest growing in terms of its awareness39. Slightly fewer residents and executives admitted being willing to participate in anti- corruption activities40, and no negative movements were recorded in the civil servant group – as one in every three civil servants confirmed their willingness to participate in anti-corruption activities41.

International bribery

Lithuania ratified the Anti-Corruption Convention of the Organisation for Economic Co-operation and Development (hereinafter – OECD) in 2017, and began monitoring the awareness and scope of international bribery. It should be noted that only one in four executives was informed about the risk of bribery in international transactions (26 per cent), the number being 47 per cent among operating companies or economic entities working abroad. Thus, about half of the businesses operating on the international arena was not aware of the risks of bribery in international transactions. Absolute majority – 98 per cent – of civils servants described a situation when a foreign businessman bribes a Lithuanian civil servant or an officer for the purpose of seeking benefit for its business as a manifestation of corruption. Over the past five years, however, only one per cent of civil servants had some immediate experience of the kind (a foreign official offering a bribe), and only 26 per cent of civil servants had heard about risks of bribery in international business transactions. This raises doubts regarding the abilities of civil servants to identify this form of corruption, and/or whether they are sufficiently resilient to it. An international corruption survey carried out by Transparency International42 sought to assess the progress of states in implementing the OECD Anti-Corruption Convention. The survey covered 44 states: 41 signatories to the Convention and three major exporting countries not participating in the agreement. The methodology of the survey requires identifying the number of pre-trial investigations initiated and completed in each state in the past four years (2014–2017).

37 17 per cent of residents are ready to report a case of corruption (23 per cent in 2016), 32 per cent of executives (35 per cent in 2016) and 54 per cent of civil servants (42 per cent in 2016). 38 46 per cent of residents did know where to apply in order to report a case of corruption, which is by seven percent more than in 2016. 39 Among civil servants 86 per cent were aware where to apply in order to report a case of corruption, i.e. by 14 per cent more than in 2016. 40 8 per cent of residents indicated willingness to participate in anti-corruption activities (by 4 per cent less than in 2016), and 13 per cent of corporate executives (by 5 per cent less than in 2016). 41 In 2018, 33 per cent of public servants indicated that they would like to participate in anti-corruption activities, 31 per cent in 2016. 42 Transparency International, 2018 m. “Exporting corruption”. Access via the Internet: https://www.transparency.org/ whatwedo/ publication/exporting_corruption_2018

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The number of pre-trial investigations and cases is considered against the export volumes of each state concerned. Lithuania was scored 2 points and assigned to the group of countries of a limited level of enforcement of the Convention’s provisions43. At the time of drawing up the Report, two pre-trial investigations on international bribery, both launched in 2016, were in progress in Lithuania. No such investigations were initiated in the other years falling in the period concerned, and not a single international corruption case had been brought to trial. The Report noticed some developments in strengthening the anti-corruption legal base (ratification of the OECD Convention and the latest version of the Law on the Protection of Whistleblowers). The Report further stated that insufficient bilateral cooperation with foreign states and the scarcity of institutional resources were the key obstacles for enforcement of the provisions of the Convention.

43 As a result of an analysis of the enforcement level all countries were classified into four groups: actively enforcing the obligations under the Convention (seven countries), limited enforcement (11 countries), and 22 countries reporting little or no enforcement of the provisions of the Convention.

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CORRUPTION IN SELF-GOVERNANCE

Corruption problems at municipal institutions

Corruption status of municipality institutions

According to the findings of the survey of the Lithuanian Map of Corruption 2018, city and regional municipalities are considered among the most corrupt institutions in Lithuania. In the opinion of residents in terms of prevalence of corruption municipalities rank fourth; while executives believe that municipalities are in third place, or in second place according to civil servants44. Although the overall attitude towards the level of corruption at municipalities45 among all the other target groups did not change, there were some changes in the assessment of intensity of corruption in the municipalities by residents and civil servants. As compared to the results of a resident survey for 2016–2018, ranking of municipalities as very corrupt has declined, however, more residents believe that municipalities are partly corrupt46. In the case of civil servants, the change was reverse, as the share of civil servants considering municipalities to be very corrupt increased, with a smaller share of civil servants considering municipalities to be partly corrupt47. No significant changes in the attitudes of businesses towards corruptness of municipalities48 were recorded if compared to the results of the 2016 survey. Residents and corporate executives believe that public procurement divisions and commissions at municipalities are the most corrupt49, also construction divisions50 and municipal entities51. In the opinion of civil servants most corrupt are municipal entities, councils, construction divisions and Mayors52. Regarding changes in the anti-corruption environment at municipality level in the opinion of residents the corruption level increased most significantly at the Child Rights Protection Division53. The assessment by corporate executives of the corruption level at the architecture, urban development and/or territorial planning divisions has significantly

44 Lithuanian municipalities were referred to as the most corrupt institutions in Lithuania by 24 per cent of residents (22 per cent in 2016), 22 per cent of company executives (20 per cent in 2016), and 29 per cent of civil servants (27 per cent in 2016). 45 The total corruption assessment is estimated as the total of the answers ‘very corrupt’ an ‘partly corrupt’. 46 As compared to 2016, the share of residents perceiving municipalities as very corrupt decreased by 4 per cent and was recorded at 22 per cent (26 per cent in 2016), while the share of residents perceiving municipalities as partly corrupt increased by 5 per cent (57 per cent in 2018, and 52 per cent in 2016). 47 As compared to 2016, the share of civil servants assessing municipalities as very corrupt increased by 5 per cent (41 per cent in 2018, and 36 per cent in 2016), while the share of civil servants perceiving municipalities as partly corrupt decreased by 7 per cent (36 per cent in 2018 and 43 per cent in 2016). 48 26 per cent of company executives believe that municipalities are very corrupt, and 48 per cent think that they are partially corrupt (respectively, 28 and 46 per cent in 2016). 49 In 2018 among residents – 63 per cent and 64 per cent among company executives. 50 In 2018, 60 per cent among residents and executives. 51 In 2018, 59 per cent among residents and 57 per cent among corporate executives. 52 In 2018, 64 per cent of municipality entities, 61 per cent in councils and 60 per cent in construction divisions, and mayors – 60 per cent. 53 In 2018, 43 per cent of residents claimed that the divisions are very corrupt or partially corrupt, and in 2016 – 30 per cent. The latter change is to a large extent associated with the incident in Kaunas related to the removal of children from their parents that was widely covered in the media.

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improved54, and a more favourable assessment was recorded with respect to construction divisions55. As compared to 2016, there was some increase in the perception of corruption of the Child Rights Protection Divisions among corporate executives56, some deterioration of the incidence of corruption at municipal administrations57, social support58 and education59 divisions. Civil servants expressed less favourable opinions on the resilience of Mayors to corruption60, while were more positive in assessing public procurement divisions and commissions61. No major changes were recorded in the perception of corruption among residents: 16 per cent of residents that sought to manage their affairs at city and regional municipalities claimed they were expected to give a bribe or provide a benefit of a different kind. The highest bribe extortion indicator62 remained with the construction division, fairly high bribe extortion indicators were recorded among the residents that sought to manage their affairs at municipal councils, or applied with business to the Mayor63. There were no significant changes in the corruption experiences of corporate executives when dealing with city and regional municipalities, as in 2018 20 per cent of respondents indicated that a bribe was expected from them or their corporate representatives managing their affairs at the municipalities. Bribes were most often demanded from business representatives when dealing with the Mayors, as well as at the municipalities and construction divisions64. Of civil servants managing their business at the municipalities, 11 per cent indicated that a bribe was demanded from them65. The highest extortion index within this target group was among civil servants who sought to manage their affairs at municipalities66.

54 In 2018, 56 per cent of corporate executives assessed the divisions as partly corrupt, and 64 per cent in 2016, i.e. 8 per cent less. 55 In 2018 it was perceived as very corrupt or partly corrupt by 57 per cent of respondents, and by 63 per cent of respondents in 2016, i.e. by 6 per cent less. 56 In 2018, 37 per cent of corporate executives claimed that the divisions are very (or partly) corrupt, an increase of 17 per cent since 2016. The latter change is to a large extent associated with the incident in Kaunas related to the removal of children from their parents that was broadly covered in the media. 57 Municipal administrations were perceived as very or partly corrupt by 53 per cent of executives, and 45 per cent in 2016; an increase of 8 per cent. 58 Social support divisions were perceived as very or partly corrupt by 36 per cent of executives, and 29 per cent in 2016, an increase of 9 per cent. 59 Education divisions were perceived as very or partly corrupt by 32 per cent of executives, and 26 per cent in 2016, i.e. an increase of 6 per cent. 60 Mayors were perceived as very corrupt or partly corrupt by 60 per cent of civil servants, and 52 per cent in 2016; an increase of 8 per cent. 61 Public procurement commissions and divisions were perceived to be corrupt by 51 per cent of civil servants, i.e. by 6 per cent less than in 2016. 62 The bribe extortion indicator shows the share of respondents seeking to manage their affairs at municipal institutions, from which a bribe was expected, where 1 means from all, and 0 means from no one. 63 When managing affairs at construction divisions – 0.21, municipal councils – 0.16, and with the Mayor – 0.12. 64 When managing affairs with the Mayor – 0,11, at local neighbourhood offices – 0.1, and at construction divisions – 0.1. 65 As compared to 2016, there have been no statistically significant changes in the indicator. 66 Bribe extortion index – 0.08.

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The status of the anti-corruption environment at municipalities

The municipalities remain among the institutions that are perceived as most corrupt, and where no tangible positive developments have been recorded in recent years. This can be explained to a large extent by the insufficient involvement of the public sector in introducing or implementing self-control principles at their institutions. The experts of the cross-national survey ‘Sustainable Governance Indica- tors, 2018‘67 criticised the anti-corruption programmes of national governments and municipal institutions: the institutions only inadequately or as a declarative act assess the probability of corruption, therefore part of the potential corruption acts and circumstances fall outside the scope of such programmes. When assessing the anti-corruption environment at municipality level attention should be paid to the structure of the information published by the relevant institutions. According to the data of the ‘Jurgis’s Hat’68 survey initiated by Transparency International Lithuania (hereinafter – TIL) municipalities mostly publish their operational and financial performance ratios, data of the municipal budgets and their execution. And least information is published about the structure of the institutions, positions of officials, employees, and the involvement of residents in the decision-making process69. The involvement of residents in the self-governance process is a mandatory condition for ensuring the accountability of municipalities. Thus, by failing to create the necessary instruments or informing residents of the possible ways to monitor and becoming engaged in decision-making processes, the municipality institutions do not put in place a sustainable reporting mechanism that would contribute to strengthening institutional resilience to corruption. Ample evidence about the corruption vulnerability of municipalities is provided by other national surveys disclosing that municipalities fail to en- force good governance principles. The annual survey ‘Lithuanian Municipality Index, 201870’ conducted by the Lithu- anian Free Market Institute (hereinafter

67 Access via the Internet: https://www.weforum.org/reports/the-global-competitveness-report-2018 68 The purpose of the survey was to determine the scope of information published on the websites of municipalities about their employees, activities of the municipality councils, anti-corruption measures, municipality entities and companies, annual budgets, public procurement and the possibilities for the residents to participate in the decision-making process. Access via the Internet: http://www.jurgiokepure.lt/tyrimas/2018/vilniaus-miesto 69 It should be noted that if compared to 2014, when the survey was carried out for the first time, Lithuanian municipalities became more transparent: in 2018, the transparency average increased from 56 to 69 points out of 100 possible. 70 In 2018, major municipalities were scored at two points lower than in 2017, while the small municipalities were scored at two points more than in 2017; the governance indicator is constructed by assessing the efficiency of the budget and property management, and ensuring the productivity of the administration.

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– LFMI) concluded that municipalities do not always succeed in efficiently managing financial and human resources. Major municipalities were scored on average 56 points out of a possible 100, and, respectively, 62 points out of 100 for small municipalities. Governance of municipalities is the poorest and the least varying indicator for the entire survey71. The financial expenses, assets and human resources management risks clearly identified in the LFMI survey are specifically evident in the light of insufficient management of interests and the threats of politicisation at municipal entities. According to the data of a survey conducted by the TIL72, experts referred to politicisation as one of the most urgent and acute problems at state and municipality-controlled entities (hereinafter – SCE and MCE). The influence on the part of politicians is manifested in changing the established objectives of the companies, or by failing to define any consistent objectives for them, also by appointing managers, members of the Boards, or allocating assistance resources. The problem of politicisation becomes particularly apparent when analysing the change of managers of SCEs and MCEs: four out of 10 managers of state-controlled or municipality-controlled entities were related to political parties or political associations, and an analysis of the indicator for the past ten years showed that the managers of nearly one third of SCEs and MCEs are replaced after each municipal election campaign.

STT investigations at municipalities

The data collected as part of the criminal prosecution conducted by the STT, and the results of the accompanying studies showed that corruption at municipalities is a problem requiring particular attention. It should be noted that 37 per cent of all the pre-trial investigations opened in 2018 by the Service are related to criminal acts potentially committed at the self-governance level. During 2018, the Service initiated 23 pre-trial investigations in 14 municipalities and identified total 128 criminal acts committed in the self- governance area. During the reporting year, within pre-trial investigation, notices of suspicion were lodged against 99 individuals, 13 of which hold important positions in the municipalities. During 2018, 27 judicial decisions were passed in criminal cases referred to courts, regarding 310 criminal activities in the self-governance areas and concerning 121 individuals, in addition to 77 conviction sentences passed for the commitment of 182 criminal offences. Proceedings regarding five criminal cases are in progress at the first

71 In 2018, major municipalities were scored at two points lower than in 2017, while the small municipalities were scored at two points more than in 2017; the governance indicator is constructed by assessing the efficiency of the budget and property management, and ensuring the productivity of the administration. 72 Transparency International Lithuania, 2018: Interesai valstybės ir savivaldybių valdomose įmonėse – kaip juos suvaldyti? Access via the Internet: https://www.transparency.lt/wp-content/uploads/2018/02/Interesai_valstybes_ir_savi- valdybiu_ valdomose_imonese_tils.pdf

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instance courts (regarding 23 criminal activities in which suspicions were raised against 16 persons). About half of pre-trial investigations were based on the suspicions that corruption offences were committed with a view to affecting the results of public procurement procedures. The 67 alleged criminal activities at the self-governance level investigated in the course of 2018 were related to the organisation, execution, control and supervision of public procurement procedures, and 48 activities were related to the provision, control or supervision of public and administrative services. Considering that as many as half of pre-trial investigations were opened following suspicions that corruption offences were committed seeking to affect the results of public procurement procedures, and the fact that senior and middle rank executives are not those directly involved in the public procurement procedures, it may be concluded that the municipalities fail to put in place efficient whistleblowing mechanisms about actions and/ or instructions of other employees (executives), municipalities still foster a culture of not questioning any directions or actions of chief executives which allows them, without any fear of being reported, to exercise influence over the decisions and actions of their subordinates.

Reasons for corruption incidence at municipalities

The corruption problem in the municipalities is confirmed not only by the data published in the ‘Lithuanian Corruption Map’, but also by the findings of a number of sociological survey and assessments exercised by the Service, according to which a number of factors, such as nepotism, politicisation and conflicts of interests do play a role in affecting the level of corruption in municipalities.

Nepotism73

The risk of nepotism is considered to arise in cases where there are family relationships between the persons, one of which has administrative authority and performs resource management or similar functions. There is also a risk of latent nepotism, when persons promote the careers of their associates and family members or seek to improve their working conditions at the expense of other employees. The Service carried out the survey ‘An assessment of nepotism risk at municipalities‘ and analysed the nepotism risk intensity74 indicators at 60 administrations of Lithuanian municipalities (see Annex 2, Fig.1). The average nepotism risk intensity at the municipality administrations was rated at 18 per cent, and in the administrations of 25 municipalities the indicator exceeded the average and ranged from19 per cent to 35 per cent.

73 Nepotism is the custody and protection of your family members, relatives and other close persons (including cohabiting partners, partners) using their current official positions, name and power. 74 Share of relatives, spouses or in-laws in relation to the total number of employees.

21 ASSESSMENT OF CHANGES ANALYTICAL ANTI-CORRUPTION IN THE LITHUANIAN CORRUPTION CRIMINAL PREVENTION ADMINISTRATION ANTI-CORRUPTION EDUCATION AND ANTI-CORRUPTION IN SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA INTELLIGENCE INFORMATION OF SOCIETY ENVIRONMENT

The survey concluded that in February 2019 as compared to May 2018 at some municipality administrations the intensity of nepotism risk was continuing to increase. The monitoring disclosed that in some municipalities the indicator increased by 34 per cent (to 57 per cent), also was increasing the number of municipal administrations at which the nepotism risk exceeded the average. An analysis of the average nepotism risk intensity was carried out by randomly selecting six Lithuanian municipalities (Marijampolė, Vilnius region, Klaipėda region, Pagėgiai region, Šalčininkai and Kaunas region). The survey concluded a 19 per cent nepotism risk intensity at the regional municipal entities and organisations. It was noted that the municipalities with more people related by family ties (total municipality employees per one thousand residents) tend to operate larger administration apparatuses. It follows that a larger nepotism risk intensity may lead to larger municipal administrations75.

Politicisation76

An assessment of the politicisation at Lithuanian municipalities concluded a significant politicisation risk at the administrations of Lithuanian municipalities and identified those with the highest degree of politicisation. The largest number of members of political parties was established at Tauragė region (52 per cent of the employees were members of political parties), Birštonas (50 per cent), Radviliškis region (48 per cent) (see Fig. 2 of Annex 2) municipalities. The influence by political parties to some degree was identified also at the entities and institutions of six randomly selected Lithuanian municipalities (Marijampolė, Vilnius region, Klaipėda region, Pagėgiai, Šalčininkai and Kaunas region municipalities). Depending on the municipality, the politicisation of municipal institutions and entities varies from

75 A relative size of a municipal administration was estimated as a ratio of the total employees in the administration to the total population of the respective municipality (data of the Statistics Lithuania, 2018). 76 Politicisation – state administration and decision-making, where party and biased criteria are used instead of professiona- lism and merit, and the power of a political party to appoint party or biased persons in public service or in the public sector, as well as dismissal from these positions, is regarded as party patronage.

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8 per cent to 34 per cent. The survey also established that 28 per cent of the entities and institutions of the six selected municipalities (Marijampolė, Vilnius region, Klaipėda region, Pagėgiai, Šalčininkai and Kaunas region municipalities) are headed by members of political parties. It was also concluded that the members of political parties working at municipal administrations receive employment- related income that is about 17 per cent greater than that of employees not belonging to any political parties. In some municipalities (Kazlų Rūda, Ignalina, Visaginas and Plungė) this income difference could be as large as 57–60 per cent.

Conflicts of interests77

An assessment of the risk intensity in the areas of support and public procurement at Lithuanian municipalities concluded that in 2015–2017 a number of legal entities that had been supporting municipal administrations increased their chances of success when participating in the public procurement procedures organised by municipalities. The assessment concluded that the largest part of procurement negotiated procedures (in terms of value) was awarded to the support providers in Marijampolė (87 per cent), Neringa (87 per cent) and Kupiškis region (81 per cent) municipalities. Furthermore, ten out of 15 municipalities in which the winners of the public procurement procedures were allocated more than half of the total procurement value characteristically have a higher than average nepotism risk intensity. Corruption risk factors acting conductively to the appearance of corruption in self- governance were identified following the corruption risk analyses and the anti-corruption assessment of legal acts. Certain issues causing the appearance of corruption relations were identified in the following areas: public procurement, governance and operational control of municipal entities; reconciliation of public and private interests; management and disposal of state and municipal assets; development of the social an engineering infrastructure of the assistance facilities; road maintenance, car parking and public transportation; real estate heritage, administration of multi-apartment houses, informal education and social support by food products. On the basis of the analysis and assessments several reasons that directly facilitate the appearance of corruption were identified: incomplete regulation of processes, insufficient information of the society and the involvement of the public in the decision-making process;

77 A conflict of interests is a situation when a person in civil service performing his/her duties (or a task) has to take (or to participate in taking) a decision that is related to his/her private interests

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insufficiently transparent use of the funds managed by municipalities, or a negligent balan- cing of public and private interests. The other factors equally responsible for the incidence of corruption at self-governance level are faults in the selection process of employees responsible for the prevention of corruption in municipalities, when the positions in charge of prevention functions are taken by persons not having the required qualification, education and/or the abilities to accomplish the assigned corruption prevention tasks.

24 CRIMINAL PROSECUTION Identification of 380 criminal acts against the civil OPENED PRE-TRIAL INVESTIGATIONS service and public interests 19 pre-trial investigations opened Total 155 pre-trial according to complaints and reports investigations were in progress

Investigations launched regarding 483 63 pre-trial investigations allegedly committed criminal acts launched Notices of suspicion lodged As part of pre-trial investigations notices to 217 persons of suspicion lodged to 217 individuals

COMPLETED PRE-TRIAL INVESTIGATIONS

65 completed pre-trial investigations 32 per cent of pre-trial The number of investigations lasted identified cases of Upon the completion of up to 9 months the pre-trial investigations trade in influence increased to 72 28 cases were brought to court Within the 28 cases referred Upon the completion of the to court criminal charges investigations 88 persons were were brought regarding accused of criminal acts 217 criminal acts

JUDICIAL DECISIONS 65 completed criminal The courts examined 66 criminal Fines in the amount of EUR investigations cases in respect of which the 377,000 were imposed on pre-trial investigations were 45 convicted induviduals carried out by STT 20 individuals found guilty were The defendants were found guilty sentenced for imprisonment, in 54 criminal cases enforcement of the sentence The number of suspended with respect to The courts charged 61 individuals sentenced executives 17 individuals with criminal activities increased by 1/5

Key accomplishments in the area of criminal prosecution

Judicial decision Judicial decision Pre-trial investigation Pre-trial investigation regarding the abuse by regarding the abuse and regarding graft and regarding trade in the acting Mayor of bribery by the former trade in influence by influence, bribery, Kaunas City managers of Trakai MG Baltic, abuse and fraudulent accounting, region municipality bribery by political assets misappropriation, parties brought disposal of forged against court documents by a political party ‘Order and Justice’

Opened investigation Opened international Opened investigation Opened investigation regarding abuse and trade investigation regarding regarding an alleged regarding alleged abuse, in influence at Panevėžys an alleged attempt to bribery at Raseiniai trade in influence and city municipality bribe a colonel of the region municipality other criminal activities Lithuanian Armed of the Head of the Forces National Blood Centre

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“To be efficient in the rapidly changing operating environment it is necessary not only to be able to master and efficiently use innovative technical and tactical solutions, but also to be able to act as a team while applying a thousand-year-old experience.”

Head of the Investigation Coordination Department Daumantas Pocius

Criminal prosecution – probably the most financially demanding method of combating corruption where both public or non-public investigations detect and disclose committed or anticipated criminal corruption acts, identify and prosecute the persons who have committed the crimes, and the data obtained in the course of the investigations is used also for the purpose of enforcing other anti-corruption measures. In addition to those mentioned earlier an important objective of criminal prosecution is to prevent corruption crimes potentially causing damage. A properly focused, proactive and comprehensive investigation of criminal activities helps to identify and disclose the complex, systemic corruption crimes most damaging to the state, and thus contributes to the mission of the Service – to combat corruption causing threat to human rights and freedoms, the principles of the rule of law, economic development, and the enforcement of the principles of justice and the inevitability of punishment. Some of the more notable pre-trial investigations opened, cases transferred to or closed in courts are described below: Final judgement was passed in the investigation initially opened in 2011 and completed by convicting, for abuse of the official position, K. Kriščiūnas, the acting Mayor of Kaunas City for instructing that part of the cost of repair of his public assistant’s private residence be paid from the account of a private company controlled by Kaunas City Municipality. He was fined EUR 22,600. The Director of a private company contііrolled by the Municipality was fined EUR 9,400 for misappropriation of assets and forgery of documents. Fines were also imposed on the other individuals acting in concert with the Director in misappropriating the assets: The public assistant to the Mayor was fined EUR 3,800 and an employee of the company was finedEUR 5,600. In addition, the employee that assisted the Director in abusing his official position and forging the documents was finedEUR 2,300. Final judgment was passed in the investigation launched in 2007 in which a number of former Trakai region municipality officials were held guilty of bribery and abuse of office: V. Petkevičius, the Mayor of Trakai region municipality (also recognised to be guilty of arbitrary government), S. Raščiauskas, Deputy Mayor of Trakai region municipality, and

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L. Karnila, Director of administration of Trakai region municipality. In addition, sentences were passed in respect of nine managers of companies and five legal entities. Furthermore, a representative of the criminal world was found guilty of assisting the Mayor in abusing and choosing arbitrary governance conduct. When hearing the criminal case in 2013, the first instance court sentenced L. Karnila to a seven-year term of imprisonment, and respectively S. Raščiauskas and V. Petkevičius – to six- and five-year terms of imprisonment. While the courts were examining the appeals of the defendants, certain changes were introduced in the legislation and the case law. According to the judgment of the Supreme Court of Lithuania the former managers of Trakai region municipality were sentenced to a four-year term of imprisonment, suspending the enforcement of the sentence, in addition to confiscating significant amounts of money, the legal entities were subject to monetary fines. The judgments passed in this criminal case clearly demonstrated that the duration of the process does not allow a proper delivery of justice, as it determines the types and the terms of the sanctions imposed upon the defendant, as well as the enforcement of such sentences. In 2018, the Service completed and referred to court a case of political corruption opened in 2016 regarding bribery and trade in influence for the benefit of one of the managers of the MG Baltic Concern, and the corruption offences committed by political parties: the Labour Party was held guilty of bribery and trade in influence, and the Liberal Movement Political Party was charged with bribery, trade in influence and abuse of office. The alleged corrupt agreements disclosed as part of the investigation and concluded with a view to affecting the legislation process made the case exceptional. The case was referred to court, where suspicions were raised against four well-known politicians, one of the MG Baltic Concern managers and a number of related legal entities. An investigation commenced in 2014 was completed and referred to court concerned trade in influence, fraudulent accounting, property misappropriation, forgery of documents and disposal of forged documents. The investigation established that a bribe in excess of EUR 350,000 was deposited for the benefit of the political party ‘Order and Justice’ in exchange for promises and agreements to exercise influence over the civil servants of several ministries in order to provide some exclusive operating conditions for specific companies. The defendants in the case were six natural persons and one legal entity –the Order and Justice Party. Another investigation launched by the Service concerned an alleged abuse of office, trade in influence and assistance in pursuing a commercial activity without having a proper licence, also the

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organisation of such activities. During the pre-trail investigation a notice of suspicion was lodged against the Head of the National Blood Centre. The proceedings assessed the circumstances related to suspected criminal activities of the official who allegedly contributed to creating exclusive conditions for a private company in monopolising the collection and processing of blood plasma in Lithuania, also with an attempt to influence certain civil servants in Latvia with a view to taking over plasma collection and processing operations in the neighbouring Republic. STT opened a pre-trial investigation regarding alleged abuse of office and trade in influence where suspicions of committing the crime were raised against the Mayor of Panevėžys, and allegedly his assistant. The Mayor and the related political movement were provided different kinds of services in exchange for a promise to affect the employees of municipalities responsible for hundreds of thousands worth public procurement operations and supervising the implementation of the concluded contracts. The Service opened a pre-trial investigation regarding an alleged attempt to bribe a colonel of the Lithuanian Armed Forces, suspecting that an individual representing a foreign company offered the military officer a bribe of more than EUR 90,000 for his support in helping the company the individual was representing to win a large value public procurement procedure announced by the Lithuanian Armed Forces. The investigation is being conducted not only in Lithuania, in this respect STT was cooperating with the Second Investigation Department of the Ministry of National Defence of the Republic of Lithuania, and the Corruption Prevention and Combating Bureau of Latvia. STT opened a pre-trial investigation regarding a possible bribing practice at Raseiniai region municipality. Suspicions were raised against the former Director of the municipality administration who, in exchange for a high value bribe, facilitated a private company in winning a public procurement procedure of a municipality-controlled company. The latter was also charged with assisting the Director of the municipality-controlled company to embezzle its assets. In this pre-trial investigation suspicions concerning alleged criminal acts were raised against five individuals.

28 ANALYTICAL ANTICORRUPTION

INTELLIGENCE Launching of the big data analysis method STRATEGIC ANALYSIS permitting identification of systemic corruption Assessment of corruption Analysis of 3 factors risks and the scope of their incidence vulnerability of 6 public causing the incidence administration areas: self-governance, of corruption (nepotism, health-care, management of favouritism, conflicts of the State information resources, law private and public interests) enforcement, agriculture, energy On the basis of the 5 systemic analytic findings of the relevant Completion of 5 overviews anticorruption surveys, measures taken to of the assessment of intelligence surveys comprehensively eliminate anticorruption environment corruption risks in the area of public procurement, provision of support and the management of the TATACCTICATICAL AANALNALYYSISIS conflicts of interests.

Identified new corruption forms 117 analytic anticorruption in 3 state-controlled sectors: intelligence inspections provision of support, public Joint investigation launched Intensified prevention procurement and supervision of with the Public Procurement and investigation of economic entities conflicts of interests on Office, State Tax Inspectorate the basis of completed Conclusion of 3 new data supply and the Chief Official Ethics investigations contracts provision for a Commission regarding the possibility to receive and us use of sponsorship as a larger data masses for the remuneration for winning identification of corruption risks public procurement procedures The opportunities provided by and the operating methods of the analytic anticorruption OPERATING ANALYSIS intelligence attracted the attention of foreign Integrity checks of 2,670 persons Assessment of 194 natural corruption fighting seeking to hold or holding persons and legal entities for institutions positions at state or municipality compliance with the national companies and entities security requirements

1141 analytical anticorruption Organisation of 3 workshops Winning in the project intelligence tasks for the representatives of the selection for the support anti-corruption authorities for strengthening of analytical capacities of the European Anti-Fraud Office (OLAF)

Most important tasks in the area of analytical anticorruption intelligence in 2018

Assessment of the risks Assessment of the risks Assessment of the risks related to the provision related to the provision of related to the issue of of support and the support and the visas and the permits for organisation of public organisation of public residence in Lithuania procurement procedures procurement procedures for aliens in the health care sector in the fire protection area

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“With knowledge comes the broadness of the attitude” (Henry David Thoreau)

Head of the Analytical Anti-Corruption Intelligence Department Ramunė Gervickienė

From 1 January 2018, the Law on the Special Investigation Service defined a new independent line of activity of STT – analytical anti-corruption intelligence – a system of targeted actions and measures, innovative even by international standards, responding to the need to build an evidence-based anti-corruption policy in Lithuania. The insights collected as part of analytical surveys enable decision-makers to take reasonable and measured decisions in order to curb the causality and prevalence of corruption thus strengthening control over corruption and developing a corruption prevention system in Lithuania. STT had been carrying out analytical intelligence work even before the relevant amendments to the Law, but from 2018 onwards the nature and the scope of the activities changed fundamentally. The Service previously used analytical surveys as an auxiliary instrument for criminal prosecution. The results of the analysis were used when the other data was not sufficient, or some additional data was needed to carry out a criminal prosecution. Furthermore, the results of such analysis were never shared with other institutions for investigation or corruption prevention purposes. With the emergence of increasingly more reliable digital data and comprehensive analysis methods, STT gradually identified broader possibilities for applying the findings of analytical surveys. By reconciling and analysing high volumes of objective factual data and aligning the data with the information available to STT, and applying different analytical methods we continuously discover ways to investigate not only individual corruption cases but rather acquire an overall view of corruption processes developing in the country. This systemic approach is instrumental in identifying the conditions conducive to corruption, as well as broad-scale corruption mechanisms and corruption risks before they transform into corruption activities. With a view to assessing potential risks in the health care system the Service carried out an analytical anti-corruption intelligence investigation (hereinafter –AAII) that uncovered certain previously unknown corruption behaviour mechanisms, and the systemic nature of the existing problems in the area of organisation, execution and control of public procurement, as well as the management of conflicts between public and private interests. Health care system: organisation of public procurement, provision of support, conflict of interests An AAII regarding the organisation of public procurement procedures completed at the PI Karoliniškių Polyclinic disclosed that while acting in her official position the Director of the Polyclinic allegedly had some vested property interest and in passing decisions was acting for the benefit of a company managed by her spouse, although formally the Director of the Polyclinics had followed all the requirements set forth by legal acts regulating reconciliation of public and private interests.

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The investigation concluded that the Director of the Polyclinic issued an Order to set up a standing public procurement commission consisting of individuals recruited after the Director was appointed to the position, and some of them related to the Director of the Polyclinic or the company managed by her spouse. After the Director started working at the Polyclinic the volumes of the successful public procurement bids by her spouse’s company increased 28 times, as the company became a major supplier for the Karoliniškių Polyclinic. The volumes of the successful bids by the company managed by the spouse of the Director was not only the largest among all the Lithuanian polyclinics, but also among most national hospitals. The investigation concluded that having received support from the company managed by the Director’s spouse, the Polyclinic had on numerous occasions published calls for tenders to procure laboratory reagents and the operating materials for medical equipment that suited specifically the equipment supplied by the company managed by the Director’s spouse. By providing to the Polyclinic support in the form of assets the company secured a long-term (at least for the time of operation of the medical equipment) economic benefit for itself. An AAII of the organisation of public procurement procedures and the provision of support at one of the largest hospitals in Lithuania – the PE Vilnius University Hospital Santaros Clinic (hereinafter – the Santaros Clinic) revealed that most of the public procurement calls were won by the companies that had provided support to the hospital or its related beneficiaries. About one third of the support was allocated not to the contracting authority, but to other shadow beneficiaries, i.e. legal entities related to the contracting authority, registered at its address and/or managed by its employees. With a view to securing more favourable terms for winning public procurement calls, not only the winners of public procurement procedures, but also other legal entities maintaining with them business relations were providing assistance to the contracting authority and other legal entities related to it. This kind of sponsorship provision mechanism not only allows avoiding links with the contracting authority, but also conceals the very fact of sponsorship. Some of the employees of the contracting authority who at the same time were managing legal entities, beneficiaries of the support were acting under the terms of a conflict of interests when receiving sponsorship from the winners of the procurement procedures called by the contracting authority: they did not declare the potential conflicts between the private and the public interests, thus concealing their interests and links to the beneficiaries. It was also found that the sponsorship was potentially used for purposes not related to the activities of the beneficiary (personal purposes). Some of the funds received as sponsorship were transferred to the employees of the Santaros Clinic. The corruption risk when legal entities accounting for a small part of the winners of public procurement procedures are awsarded a major part of the public procurement value was confirmed after the data of the AAII data was supplemented with the data related to the public procurement procedures and sponsorship related to another nine major regional Lithuanian hospitals. The investigation concluded that as little as 16 per cent of the winners of the public procurement procedures initiated by 10 major hospitals were allocated 44 per cent (nearly EUR 236 million) of the value of the public procurement calls by the hospitals concerned. The major part of the support was granted to companies engaged in medical equipment and pharmaceutical product business. STT initiated an AAII at the State fire protection system with a view to establishing whether corruption risks related to sponsorship is also characteristic of other areas of public administration, disclosing their systemic character and the variety of manifestation

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mechanisms. The investigation concluded that the provision of sponsorship by private legal persons to beneficiaries related to the State fire protection institutions potentially secured more favourable terms for sponsoring legal entities in their efforts to start and/or implement their activities that must be compliant with the fire safety regulations.

Fire safety: organisation of fire safety supervision and sponsorship A relevant AAII conducted by the Service obtained the data that a large share of the sponsorship received by the Lithuanian Firefighters’ Sport Federation (hereinafter – Federation) and the territorial firefighter sport clubs was obtained from the entities engaged in the construction of the objects that require a fire safety project, or operating the sites that needed to undergo fire safety technical inspections. The AAI investigation established that some of the chief officers of the regional Fire safety Boards and their structural divisions subordinate and accountable to the Fire and Rescue Department under the Ministry of the Interior were actually managers or members of the Federation or other sport clubs. Furthermore, the investigation concluded that part of the funds allocated as sponsorship to the Federation and the relevant sport clubs was used for personal and other purposes unrelated to the direct activities of the Federation. With a view to identifying and assessing the practical (procedural) gaps that might have been taken advantage of when illegitimately passing decisions regarding the issuing of visas or residence permits in Lithuania, STT carried out an AAI investigation of the migration system.

Migration: issue of visas and residence permits to third country nationals STT established that visas and residence permits were issued to persons that did not comply with the requirements of the relevant Lithuanian law78 or comply with the relevant requirements only formally. A number of observations supported the allegations that some visa and residence permits decisions had been taken on fictitious bases, for instance, more than half of the companies did not have a single employee, some had only one employee, some of the companies were not engaged in any activities or were operating under enhanced risk conditions; in some instances hundreds of entities whose members were third country nationals were registered at a single address; the registered offices of some entities were registered in premises not suitable for engaging in economic activities (garages, non-residential auxiliary premises), or in premises of just several square metres in area. The AAI investigation concluded that one of the reasons for such inappropriate an only formally compliant issue of visas and residence permits was the formal assessment of the submitted data and documents, and the absence of a mechanism for verifying the consistency of declared facts and the reasonableness of the decisions passed. The reasons for this are the shortcomings in the work organisation, and, possibly, a failure to comply with good public administration principles rather than activities of a corrupt nature. Such systemic failure of control in the migration system created conditions for the existence of ‘grey migration‘ in Lithuania. Because of the gaps in the migration control system third country nationals used Lithuania as a transit country to illegally enter other EU Member States.

78 Law No. IX-2206 of 29 April 2004 of the Republic of Lithuania

32 PREVENTION OF CORRUPTION

ANTI-CORRUPTION ASSESSMENT OF LEGAL ACTS Assessment of the corruption prevention Anti-corruption assessment of STT at its own initiative programmes and their 317 legal acts and draft legal acts assessed 236 legal acts or implementation plans draft legal acts Assessment of 18 procedures of 60 Lithuanian regulated or proposed to be The assessment of 81 legal municipalities regulated by the State acts or their drafts at a request of institutions Drawing up of 114 anti-corruption reports. 62 per cent of the recommendations presented in the corruption risk analysis conclusions were CORRUPTIONCORRUPTION RISKRISKA ANALNALYYSISSIS implemented; the implementation of 27 per cent of the Performance of 22 Organisation of 35 events recommendation is corruption risk analysis on methodological still in progress, and 4 per cent have been assistance on establishing implemented partly Anti-corruption assessment the probability of of 56 areas of activities of corruption manifestation public and municipal authorities Received 97 conclusions on potential corruption Implementation of the project ‘Improvement of the qualification of the public sector NATIONAL ANTI-CORRUPTION employees in building anticorruption PROGRAMME FOR 2015–2025 (NACP) environment, or the execution of the Within the limits of its competence EUR 13,600 disbursed corruption prevention STT is implementing 15 measures to whistleblowers for measures according to the NACP valuable information Within the limits of its competence The events dedicated to STT is implementing 19 activities the presentation of the according to the measures Anti-Corruption Organised 122 Environment Manual methodological Hosting of 10 discussions on attended by 420 assistance events building anti-corruption environment participants and discussions in the public sector, in business

MostMost importantimportant taskstasks inin the area of corruption prevention inn 22018

Corruption Updating of the Organised Performance of Anti-corruption Prevention Anticorruption international the corruption risk assessment of the (corruption Environment conference analysis in different Law on the resilience) Manuals for the areas of activities at the Management, Use Outline private and the Culture Heritage and Disposal of public sectors Department under the State and Ministry of Culture Municipality Assets

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“Corruption prevention from an administrative burden must turn into an attractive and practical operations improvement instrument.”

Head of the Corruption Prevention Department Rūta Kaziliūnaitė

The Corruption Prevention Department of STT is one of its strategic structural divisions in charge not only of the coordination of anti-corruption prevention in Lithuania, but also the monitoring of the National Anti-Corruption Programme for 2015–2025. In addition, the Department delivers anti-corruption assessments of legal acts or their drafts, carries out corruption risk analyses in the operation of public and municipal institutions and entities, and initiates and organises corruption prevention events. Changes in public life and the legal environment necessitated a comprehensive review of the system for the creation of a corruption resilient environment. Having regard to the provisions of the five clauses contained in the proposals to the Service presented in Decision No. 104-SPR-3 ‘Regarding the Report of STT of the RL for 2016’ of 17 May 2017 of the Committee on National Security and Defence of the Seimas of the Republic of Lithuania, and Decision No. 104-SPR-1 ‘Regarding the Report of STT of the RL for 2017’ of 20 June 2018 of the Committee on National Security and Defence of the Seimas of the Republic of Lithuania, the Service drafted the Corruption Prevention Outline (resilience to corruption).

Corruption Prevention Outline (resilience to corruption) Having assessed the corruption prevention measures enforced in Lithuania, and taking into account the good practice of other states, as well as the corruption resilience principles recognised by the international community, the Service drafted and presented the Corruption Prevention Outline (resilience to corruption), which constituted a call for discussing the directions for updating the corruption prevention (resilience to corruption) model in Lithuania.

Anti-corruption Environment Manual for the Public Sector and the Anti- corruption Environment Manual for the Private Sector As part of a project funded according to the Operational Programme for the European Union Funds’ Investments in 2014-2020 the Service updated the Anti-Corruption Environment Manual for the Private Sector. The Manual contains recommendations concerning the proper enforcement of

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corruption prevention measures, assessment of their efficiency, and presents model samples of anti-corruption policies and other documents.

International conference As part of a project funded according to the Operational Programme for the European Union Funds’ Investments in 2014-2020 the Service hosted a conference ‘Measures and tools of resilience to corruption: applicability of international experience’ in Vilnius. Experts from Latvia, Estonia, Poland, Austria and Germany shared their anti-corruption expertise with the Lithuanian public sector employees responsible for prevention of corruption.

Corruption risk analysis at the Department of Cultural Heritage under the Ministry of Culture Having analysed the corruption risk at the Department of Cultural Heritage, the Service concluded that the Department has not put in place the criteria to be followed when identifying valuable qualities of immovable heritage property; the state does not have accurate data of the immovable heritage property present in Lithuania since no inventory of such property has been taken, and the value of a large part of the objects entered in the Cultural Heritage Register has not been recorded; the mechanism for setting up of valuation councils is faulty, as the responsibility of the council members has not been clearly defined, the process of adjustment of public and private interests or the recusal procedure are not operational.

Anti-corruption assessment of the Law on the Management, Use and Disposal of State and Municipal Assets (hereinafter – the Law) Having assessed the Law from the anti- corruption viewpoint, the Service concluded that there is not sufficient information available to society about the immovable property objects operated by municipalities, or the procedure for lease, or use on the basis of trust of such objects to other parties. In some cases, municipalities do not register the contracts in the Register of Immovable Property. As a result, the Seimas registered draft Law No. XIIIP-2622(2) which provides that any assets that are owned by the municipalities, and any legal facts related to the assets, and the material rights with respect to the assets, must be registered in public registers in the manner set forth by laws. The Law also requires the information about the contracts on the lease or transfer of such immovable objects be made public.

PUBLIC ANTI-CORRUPTION EDUCATION AND INFORMATION

PUBLIC ANTI-CORRUPTION EDUCATION Trust in the STT is at 54 per cent STT organised 209 lessons, The seminars organised for lectures and seminars the private sector were attended by 1,000 Organised 66 participants anti-corruption events The seminars organised at The lectures and 58 per cent of the events state and municipal seminars in the mot were organised at the institutions were attended by risky sectors initiative of the STT more than 6,000 listeners accounted for 79 per cent of the total events

PUBLIC ANTI-CORRUPTION INFORMATION Project ‘Measures designed for anti-corruption education’ under the 172 press releases The audience at the National Programme to the media Facebook social network of the 2014-2020 increased up to 10,000 101 occasions of Internal Security participation at radio 237 comments to the media Fund and TV programmes

The anti-corruption education area presented in the course of five visits to foreign states

Highlights in the area of anti-corruption education and information in 2018

Introduction of a The participation of Attention to the Project of the new model for the STT in the self-governance: anticorruption social organisation of #BUKPOKYTIS 29 seminars held advertising strategy: anti-corruption initiative by the Young in 23 Lithuanian Transparency in our education lectures Doctors’ Association municipalities hands, 2018 (Lith.– and seminars Skaidrumas – visų mūsų rankose).

37 ASSESSMENT OF CHANGES ASSESSMENT OF CHANGES IN THE LITHUANIAN ANALYTICAL PREVENTION ANTI-CORRUPTION IN THE LITHUANIAN ANALYTICAL PREVENTION ANTI-CORRUPTION CORRUPTION IN CRIMINAL ANTI-CORRUPTION EDUCATION AND ADMINISTRATION CORRUPTION IN CRIMINAL ANTI-CORRUPTION EDUCATION AND ADMINISTRATION ANTI-CORRUPTION SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA ANTI-CORRUPTION SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA ENVIRONMENT INTELLIGENCE INFORMATION OF SOCIETY ENVIRONMENT INTELLIGENCE INFORMATION OF SOCIETY

Anti-corruption education – is one of the essential elements in fighting corruption, promoting and building a public approach model based on respect, integrity and transparency. By building a civically active generation that has sufficient knowledge about the damage of corruption and that is intolerant to the phenomenon, targeted efforts are made to promote the anti-corruption attitudes of the private and public sectors, as well as among the youth.

Head of the Anti-corruption Education Division Jurgita Razmytė

The key objective of anti-corruption education is enhancement of awareness and deterring persons from committing criminal acts, and engaging residents, representatives of public and private sectors and public organisations in corruption prevention activities.

Introduction of the new model for the organisation of anti-corruption education lectures and seminars STT drafted a Description of the Procedure for organising STT anticorruption education lectures and seminars79; the Description defines the procedure for the submission of applications for delivering lectures and seminars, selection of seminars, priority criteria, drawing up of a public plan and the form of lectures and seminars. The new model was highly instrumental in efficiently and systemically organising anti-corruption education for public sector representatives, a tool to target the riskiest sectors from corruption viewpoint and to focus all the attention and capacities on these.

Anti-corruption social advertising strategy project ‘Transparency in Our Hands‘, 2018 A video clip ‘Transparency in our hands ‘, (#TikiuskaidriaLietuva) was created and had 129,000 views on YouTube. Another highly efficient anticorruption education and information campaign tool was a package of five anti-corruption video lectures that were broadcast on social networks; they attracted more than 4,200 viewers.

79 Description of the procedure for the organisation of lectures and seminars in anticoruption educaion approved by Order No 2-481 of 12 December 2017 of the Director of STT.

38 ASSESSMENT OF CHANGES ASSESSMENT OF CHANGES IN THE LITHUANIAN ANALYTICAL PREVENTION ANTI-CORRUPTION IN THE LITHUANIAN ANALYTICAL PREVENTION ANTI-CORRUPTION CORRUPTION IN CRIMINAL ANTI-CORRUPTION EDUCATION AND ADMINISTRATION CORRUPTION IN CRIMINAL ANTI-CORRUPTION EDUCATION AND ADMINISTRATION ANTI-CORRUPTION SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA ANTI-CORRUPTION SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA ENVIRONMENT INTELLIGENCE INFORMATION OF SOCIETY ENVIRONMENT INTELLIGENCE INFORMATION OF SOCIETY

The video lectures refer to the areas that are most risky from the point of view of corruption: environmental protection, supervision and control of economic entities, the administration and control of EU funding, public procurement and health care. Another campaign was a journalistic contest ‘Transparency in Our Hands, 2018‘. The winners of the contest were announced at the International anti-corruption week.

The participation of STT in the #BŪKPOKYTIS initiative by young doctors The #BūkPokytis initiative seeks to build a transparent and efficient healthcare system. At the conference in the Seimas together with the representatives of the Young Doctors‘ Association (JGA), STT delivered a presentation ‘Idea for Lithuania; healthcare without corruption‘ and participated in a meeting with the JGA representatives as a project team in Kaunas.

Attention to self- Radviliškis Region Municipality Joniškis Region Municipality

Mažeikiai Region Municipality Pakruojis Region Municipality governance – 29

Palanga City Municipality Biržai Region Municipality seminars organised in Kretinga Region Municipality Pasvalis Region Municipality Plungė Region Municipality Rokiškis Region Municipality 23 municipalities Šiauliai Region Municipality Zarasai Region Municipality Neringa Municipality Panevėžys Region Municipality During 2018, STT Anykščiai Region Municipality Šilutė Region Municipality was actively cooperating Pagėgiai Municipality Ignalina Region Municipality with Lithuanian munici- Jurbarkas Region Municipality

Širvintos Region Municipality Kaunas City Municipality palities and the repre-

Birštonas Municipality Elektrėnai Municipality sentatives of municipal Kalvarija Municipality institutions and entities. Alytus City Municipality Druskininkai Municipality Varėna Region Municipality Altogether 29 anti-corruption education lectures and seminars were delivered (i.e. 16 per cent of the total lectures) in the following municipalities: Alytus, Kaunas, Palanga cities, Joniškis, Pakruojis, Biržai, Pasvalys, Rokiškis, Zarasai, Panevėžys, Anykščiai, Ignalina, Širvintai, Varėna, Jurbarkas, Šilutė, Šiauliai, Plungė, Kretinga, Mažeikiai and Radviliškis regions. There were also audiences from institutions, entities and companies controlled by Birštonas, Druskininkai, Elektrėnai, Kalvarija, Neringa and Pagėgiai municipalities. The seminars were attended by more than 1,000 representatives from municipal institutions and entities constituting 15 per cent of the total participants.

ADMINISTRATION AREA

INTERNATIONAL COOPERATION In 2018, for Cooperation with 10 55 anticorruption events the performance of international anti-corruption the functions STT Cooperation agreement institution was allocated 0.11 per with the Serious Fraud cent of the Lithuanian 6 international events OECD Office of the United public budget Kingdom 35 employees were exchanging their expertise with the development cooperation states Approved funding for the project Training of officers STAFF on EU policies related subjects under the National The maximum number Training events attended Programme of the of employees at the STT by 228 employees 2014-2020 Internal was increased to 320 Security Fund Each employee on average 22 new employees attended 42 academic hours were recruited to STT of training The officers got experience in The lowest employee foreign countries at 75 events turnover ratio in the past three years – 3.3 per cent. EXAMINATION OF THE APPLICATIONS

Reports to competent institutions 1,986 administrative decisions Participation in about 139 violations detected in 75 legislative Anonymous applications the applications processes accounted for 1/3 of all 403 applications were referred to applications received – other institutions to be examined 559 applications according to their area of 1977 applications from competence persons received

Highlights in the area of anti-corruption education and information in 2018

Coming into Participation in Participation in Contribution Awarded Twinning effect of the STT the process of the drafting of the to the project in the Law and other drafting the Law Law on the Civil implementation Republic of Serbia secondary on the Protection Confiscation of of the OECD ‘Strengthening of legislation of Whistleblowers Property recommendations internal control and the related for Lithuania capacities when legal acts fighting corruption at the Ministry of the Interior’

41 ASSESSMENT OF CHANGES ASSESSMENT OF CHANGES IN THE LITHUANIAN ANALYTICAL PREVENTION ANTI-CORRUPTION IN THE LITHUANIAN ANALYTICAL PREVENTION ANTI-CORRUPTION CORRUPTION IN CRIMINAL ANTI-CORRUPTION EDUCATION AND ADMINISTRATION CORRUPTION IN CRIMINAL ANTI-CORRUPTION EDUCATION AND ADMINISTRATION ANTI-CORRUPTION SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA ANTI-CORRUPTION SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA ENVIRONMENT INTELLIGENCE INFORMATION OF SOCIETY ENVIRONMENT INTELLIGENCE INFORMATION OF SOCIETY

“Efficiently, innovatively and legally – towards the objective.”

Head of the Administration Department Romualdas Gylys

The Administration Department is a multifunctional structural division of STT which is responsible for a number of key functions – drafting the laws relevant for the activities of the Department, secondary legislation, international cooperation, the Department represents the Service at the EU institutions and other states, examines applications and reports from citizens on infringements of a corruption character, etc. The Administration Department is also responsible for the proper internal administration of STT (assets and document management, public procurement operations, implementation and administration of information technologies, provision of legal consultations and representing STT in court, processing of personal data).

Coming into force of STT law and passing the secondary legislation The Law on Special Investigation Service that came into force on 1 January 2018 provided for a new area of activities of STT – analytical anti-corruption intelligence. Equally important are the supporting regulations introducing amendments to the procedure of recruiting STT officers, the social guarantees for STT officers, and their attestation. According to Resolution No. 1177 ‘On the approval of the list of professions underemployed at public and municipal institutions of the Republic of Lithuania‘, some civil servants and officers can be paid bonuses. Such possibilities will create competitive conditions and better possibilities for the implementation of STT’s objectives. The Service contributed to building protection of the whistleblower system ensuring the confidentiality of whistleblowers, protection against negative impact and financial promotion when reporting unethical or illegal activities in the private and public sectors.

42 ASSESSMENT OF CHANGES ASSESSMENT OF CHANGES IN THE LITHUANIAN ANALYTICAL PREVENTION ANTI-CORRUPTION IN THE LITHUANIAN ANALYTICAL PREVENTION ANTI-CORRUPTION CORRUPTION IN CRIMINAL ANTI-CORRUPTION EDUCATION AND ADMINISTRATION CORRUPTION IN CRIMINAL ANTI-CORRUPTION EDUCATION AND ADMINISTRATION ANTI-CORRUPTION SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA ANTI-CORRUPTION SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA ENVIRONMENT INTELLIGENCE INFORMATION OF SOCIETY ENVIRONMENT INTELLIGENCE INFORMATION OF SOCIETY

Passing of the Law on the Protection of Whistleblowers and the related legal acts The Law on the Protection of Whistleblowers that came into force on 1 January 2019, establishes the protection of persons who report an alleged infringement of law, including infringements of a corruption nature. Relevant in this context is also the secondary regulation related to the Law, for instance, Article 101 of the Law on the Prevention of Corruption providing for a duty for civil servants and equivalent persons to notify of any corruption criminal activities, while on the basis of Article 392 of the Criminal Codes of the Republic of Lithuania the Law provides for a possibility to release such persons from criminal liability. The person may be released from the criminal liability, if the person that has committed a misdemeanour, or a negligent or minor or less serious premeditated crime: 1) is recognised to be a whistleblower according to the Law on the Protection of Whistleblowers of the Republic of Lithuania, and 2) has confessed to have committed a criminal act, 3) has been actively helping in disclosing the criminal activities of another person, and 4) the criminal activity that the person assisted in disclosing is more serious than the act committed by the person himself. STT also participated in drafting the Law on the Civil Confiscation of Property that establishes the institute of civil confiscation as a measure of prevention of illegitimate enrichment.

Drafting of the Law on the Civil Confiscation of Property In 2018, STT was dedicating significant attention to discussions and the drawing up of the Law on the Civil Confiscation of Property. The draft Law was discussed and approved at the Committee on National Security and Defence of the Seimas of the Republic of Lithuania and the Supreme Court of Lithuania. The draft Law sought to strengthen the possibilities of the State to confiscate property acquired from illegal sources, i.e. enable the State not only to confiscate illegitimately acquired property in the procedure of criminal process, but also in the civil procedure. The Service maintains close cooperation relations with the anti-corruption institutions of other foreign states, organises good practice and training visits, exchanges information and establishes new relations; STT strengthens its cooperation with its foreign anti-corruption counterparts by attending joint events, conferences training and seminars in Moldova, Ukraine and Montenegro, etc.

43 ASSESSMENT OF CHANGES ASSESSMENT OF CHANGES IN THE LITHUANIAN ANALYTICAL PREVENTION ANTI-CORRUPTION IN THE LITHUANIAN ANALYTICAL PREVENTION ANTI-CORRUPTION CORRUPTION IN CRIMINAL ANTI-CORRUPTION EDUCATION AND ADMINISTRATION CORRUPTION IN CRIMINAL ANTI-CORRUPTION EDUCATION AND ADMINISTRATION ANTI-CORRUPTION SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA ANTI-CORRUPTION SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA ENVIRONMENT INTELLIGENCE INFORMATION OF SOCIETY ENVIRONMENT INTELLIGENCE INFORMATION OF SOCIETY

Joining the OECD On 5 July 2018, Lithuania became a full member of the Organisation for Economic Cooperation and Development (OECD). Lithuania has been working very hard to become a member and receive an invitation to ratify the Convention on Combating Bribery of Foreign Public Officials. Delegations from Poland, Germany and USA noted the ‘exceptional efforts exercised by Lithuania in the area and the country’s progress in combating corruption. Since one of the most important OECD standards is transparency, STT contributed in drawing up the amendments of the relevant legal regulation designed to expand the classification of corruption criminal activities, increase the sanctions applied and put in place the system for the protection of whistleblowers. As part of the efforts to implement the recommendations of the OECD Lithuania criminalised any acts related to bribing foreign public officials and improved the legal regulation to bring it into line with international anti-corruption standards.

Winning of the Twinning project in the Republic of Serbia In autumn 2018, STT, acting as the lead partner and in cooperation with its junior partner, National Anti-corruption Directorate of Romania, won a European Union Twinning programme project ‘Strengthening of internal control capacities when fighting corruption at the Ministry of the Interior’ to be implemented in the Republic of Serbia. The project will be implemented in 2019–2020 and will strengthen the capacities of the officials of the Republic of Serbia to reduce corruption. The priorities defined by the Service, its tasks and objectives, the efforts to enhance the operating efficiency strengthens the human resources of STT. To this end by its Resolution No. SV-S-801 of 27 June 2018, the Board of the Seimas decided to increase the maximum number of positions in the Service from 290 to 320. As of the end of 2018, STT structure consisted of 16 independent structural divisions – Vilnius, Kaunas, Klaipėda, Šiauliai, Panevėžys Departments, Analytical Anti-corruption Intelligence, Investigation Coordination, Corruption Prevention and Administration Department, Budget and Finance, Personnel, Planning, Security, Anti- corruption Education, Communications and the Internal Audit Divisions. At the end of the reporting period there were 239 civil servants and 29 employees at STT.

44 ASSESSMENT OF CHANGES ASSESSMENT OF CHANGES IN THE LITHUANIAN ANALYTICAL PREVENTION ANTI-CORRUPTION IN THE LITHUANIAN ANALYTICAL PREVENTION ANTI-CORRUPTION CORRUPTION IN CRIMINAL ANTI-CORRUPTION EDUCATION AND ADMINISTRATION CORRUPTION IN CRIMINAL ANTI-CORRUPTION EDUCATION AND ADMINISTRATION ANTI-CORRUPTION SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA ANTI-CORRUPTION SELF-GOVERNANCE PROSECUTION OF CORRUPTION AREA ENVIRONMENT INTELLIGENCE INFORMATION OF SOCIETY ENVIRONMENT INTELLIGENCE INFORMATION OF SOCIETY

During the accounting period the operations of STT were financed by a budget appropriation of EUR 10,280,000 (of which EUR 6,604,000 will be allocated to salaries and EUR 546,000 will be used to acquire assets)80. The increased financing not only enables the Service to strengthen its human resources, but also ensures that the Service is able to expediently and efficiently accomplish criminal intelligence actions and pre-trial investigations by investing the funds in the infrastructure available, information technologies and the developed operational strategy.

80 Law on the approval of the financial indicators of the State budget and the municipality budgets in 2018, No. XIII-868.

STT PRIORITIES IN 2019

In 2018, public trust in the Special Investigation Service reached 54 per cent. As the trust of society in STT as the principal authority in the country able to curb corruption increases, there are also equal expectations from society on the role of STT. With a view to reducing corruption and to meeting public expectations in the fight against corruption, during 2019 the activities of the Service will be focused in the following areas:

Draft corruption prevention law – taking into account the comments that the Service received after the presentation of the new Corruption Prevention Model, a draft Law on the Prevention of Corruption will be drafted and submitted to the Seimas of the Republic of Lithuania.

Targeted criminal intelligence and pre-trial investigations – the criminal prosecution capacities of STT will focus on the systemic and most detrimental corruption crimes, and will specifically focus on the enforcement of justice.

Strengthening of analytic capacities – as part of the OLAF programme, the analytical anti-corruption intelligence tools and competences of the Service will be strengthened.

Anti-corruption training – in implementing the anti-corruption training platform, efforts will be made, both legally and technically, to use the experience accumulated by our Polish partners.

Professional development of employees – employee qualifications will be enhanced by attending continuous professional development events both in Lithuania and abroad; our in-house training programmes will be continued.

Motivation measures system – the motivation system of Service employees will be strengthened.

Working environment – funding allocated to the Service will be efficiently used to create comfortable safe working places in our Vilnius headquarters and other territorial divisions of the Service.

Information security – in cooperation with the State Security Department and the National Cyber Security Centre, the information security system of the Service will be reorganised.

International cooperation – STT will continue to cooperate in joint investigations, or exchanging experience with partners in Western countries, or by transferring our expertise to development cooperation countries.

Confidence in the Service – taking into account the results of the completed sociological survey, work will continue on increasing the confidence of society in STT.

ANNEXES ANNEX 1

ACTIVITIES RELATED TO CRIMINAL PROSECUTION, STATISTICAL INDICATORS

77 78 92 161 27 171 20 155 11 cases 57 cases 73 cases 52 2016 2017 2018

Ongoing pre-trial Total pre-trial investigation cases Total pre-trial investigation investigations on 1 Jan. received from the Prosecutor’s Ofﬁce cases initiated by STT

Fig. 1. Changes in the number of pre-trial investigations received from the Prosecutor’s office and initiated by STT

344 257 447 326 483 380 Number of Number of Number of criminal criminal criminal acts 87 acts 121 acts 103 2016 2017 2018

Crimes to civil service Other criminal activities and public interests

Fig. 2. Changes in the number of established criminal activities in the opened pre-trial investigations by category

Graft (Art. 227) 71 73 144

Bribery (Art. 225) 107 143 111

Other activities 87 121 103

Trade in influence (Art. 226) 26 44 72

Abuse of ofﬁce (Art. 228) 51 56 50

Failure to perform 2 10 3 ofﬁcial duties (Art. 229) 2016 2017 2018

Fig. 3. Changes in the number of criminal activities established according to the relevant articles of the Criminal Code in the opened pre-trial investigations

50 2016 55 2017 116 2018 118

129 161 96 3 3

Other persons Legal entities Civil servants

Fig. 4. Changes in the number of the suspects by category in pre-trial investigations opened

Total pre-trial investigations Total pre-trial investigations Total pre-trial investigations on the basis of complaints on the basis of complaints on the basis of complaints and reports of residents and reports of residents and reports of residents 26 44 19

1925 2056 1977 Received reports Received reports Received reports

2016 2017 2018 1334 591 1422 634 1418 559 Others reports Anonymous reports Others reports Anonymous reports Others reports Anonymous reports

Fig. 5. Changes in the numbers of applications received and pre-trial investigations opened

6,0 6,1 9,3 2016 2017 2018 3,2 3,8 4,2

Criminal activities Suspects

Fig. 6. Changes in the average numbers of criminal activities and the suspects in pre-trial investigations opened

51 4,5 2,4 7,8 2016 2017 2018 2,1 1,8 3,1

Criminal activities Defendants

Fig. 7. Changes in the average numbers of criminal activities and accused persons identified in the pre-trial investigation cases referred to court

18 20 19 2016 2017 2018 13 11 9

Pre-trial investigations that lasted Pre-trial investigations that longer than nine months. alasted up to nine months

Fig. 8. Changes in the duration of the pre-trial investigations referred to court

31 31 28 64 33 62 31 65 37

2016 2017 2018

Pre-trial investigations referred to court Discontinued pre-trial investigations

Fig. 9. Changes in the number of pre-trial investigations by completion methods

52 31 31 28 Cases Cases Casesa 2016 2017 2018 784.7 984.9 918.2 EUR EUR EUR

Fig. 10. Changes in the number of pre-trial investigations referred to court and the related identified damage

Convicted 36 54 56 Acquitted 22 13 15 Released from criminal liability 5 6 7 Discontinued cases 2 1 12 2016 2017 2018

Fig. 11. Changes in the decisions of first instance courts by persons

396,4 thou. EUR 29,0 28,2 thou. EUR 24,3 thou. EUR 22,6 thou. EUR thou.EUR 5,6 Maximum 6,1 3,8 thou. EUR amount Maximum fine thou. EUR Maximum amount thou. EUR Maximum fine Average Average fine Average amount Average fine amount

Fines imposed Conﬁscated Fines imposed Conﬁscated by courts funds by courts funds

2016 2017

37,7 thou. EUR 32,2 thou. EUR

8,4 thou. EUR 5,9 Maximum ﬁne Maximum amount thou. EUR

Average ﬁne Average amount

Fines imposed Conﬁscated by courts funds

2018

Fig. 12. Amounts of fines imposed by courts and confiscated monetary funds

53 ANNEX 1

ACTIVITIES RELATED TO ANALYTICAL ANTI-CORRUPTION INTELLIGENCE, STATISTICAL INDICATORS

Mažeikiai Region Municipality 21% Joniškis Region Municipality 21% Skuodas Region Municipality 21%

Plungė Region Municipality 20% Kupiškis Region Municipality 20% Kretinga Region Municipality 23% 18 % Kelmė Region Municipality 20% Klaipėda Region Municipality 22% Zarasai Region Municipality 27%

Municipality of Neringa 23% 18 % 18 % Ignalina Region Municipality 25% Šilutė Region Municipality 26% 18 % Pagėgiai Municipality 35% Molėtai Region Municipality 25%

Raseiniai Region Municipality 21% 18 % Šakiai Region Municipality 26% Jonava Region Municipality 28%

Prienai Region Municipality 20% Vilnius Region Municipality 21% 18 % Trakai Region Municipality 19% 18% Marijampolė Municipality 20%

Šalčininkai Region Municipality 28%

*18 % is considered Varėna Region Municipality 29% as critical limit Lazdijai Region Municipality 26% Druskininkai Municipality 20%

Fig. 1. Intensity of nepotism risk in Lithuanian municipalities

Mažeikiai Region Municipality 38% Akmenė Region Municipality 29 proc. Pakruojas Region Municipality 39%

Telšiai Region Municipality 40% Radviliškis Region Municipality 48%

Kelmė Region Municipality 31% Rokiškis Region Municipality 37%

Rietavas Municipality 26% Zarasai Region Municipality 34%

Šilalė Region Municipality 33% Neringa Municipality 27% Utena Region Municipality 37%

Tauragė Region Municipality 52% Molėtai Region Municipality 33% Pagėgiai Municipality 40% Ukmergė Region Municipality 24% Širvintai Region Municipality 34% Raseiniai Region Municipality 38% Jonava Region Municipality 23% Kaunas Region Municipality 27% Kaišiadoriai Region Municipality 32% Kazlų Rūda Municipality 24% Vilnius Region Municipality 23% Prienai Region Municipality 28% Elektrėnai Municipality 42%

Kalvarija Municipality 39% Trakai Region Municipality 40%

Marijampolė Municipality 37% Šalčininkai Region Municipality 33% Birštonas Municipality 50% Lazdijai Region Municipality 27% Alytus Region Municipality 34%

Fig. 2. Politicisation map in Lithuanian municipalities

54 According to the Law on According to the Law on According to the Law on the Prevention of Corruption the Prevention of Corruption the Prevention of Corruption 2328 2764 2670 6671 10121 9404 People checked People checked People checked 2016 2017 2018

4343 7357 6734 On the basis On the basis On the basis established by established by established by other legal acts other legal acts other legal acts

Fig. 3. Changes in the number of persons about whom information was provided by legal basis

55 ANNEX 3

ACTIVITIES RELATED TO CORRUPTION PREVENTION, STATISTICAL INDICATORS

2016 2017 2018

173 185 196 Laws and Laws and Laws and implementing implementing implementing Draft laws and Draft laws and 121 Draft laws and legal acts legal acts 97 legal acts 93 implementing implementing implementing legal acts legal acts legal acts 266 282 317 Legal acts Legal acts Legal acts assessed from assessed from assessed from the anti-corruption the anti-corruption the anti-corruption point of view point of view point of view

Fig.1. Changes in the number of legal acts and draft legal acts assessed from the corruption viewpoint

At the request of other At the request of other On own initiative institutions On own initiative institutions

191 266 75 186 282 96

2016 2017

At the request of other On own initiative institutions

236 317 81

Fig. 2. Changes in the number of legal2018 acts and draft legal acts assessed from the corruption viewpoint by legal basis

40 55 56 16 20 22

2016 2017 2018

Completed corruption risk analyses State and municipality areas of activity

Fig. 3. Changes in the number of completed corruption risk analyses and of the areas of activities subject to anti-corruption assessment 56 ANNEX 4

ACTIVITY RELATED TO ANTI-CORRUPTION EDUCATION AND INFORMATION OF THE SOCIETY

Public procuremen

Administration and use of European Union funds

Supervision and control of economic entities

Health care sector

Environmental protection, waste management 4 200 views

Fig. 1. Anti-corruption environment material for most risky sectors

General education schools and gymnasiums Higher school

1 400 participants

Anti-corruption 14 anti-corruption education lectures educational lectures

Fig. 2. Total anti-corruption education lectures, seminars and number of participants in Lithuanian educational institutions, 2018

Fig. 3. Changes in the audience and the number of notifications on the Social network Facebook, 2018 57 ANNEX 5

ACTIVITIES RELATED TO THE AMINISTRATION AREA, STATISTICAL INDICATORS

12887,0 10280,0

8738,0 7632,6 6184,8 7464,7 7310,0 6811,6 5428,9 4956,8 5210,0 5507,7

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Fig. 1. Change in the appropriations to STT, thous. EUR

257 263 268

2016 2017 2018 27 33 26 33 18 22

Total employees Admitted to the Service Dismissed from the Service

Fig. 2. Changes in the number of STT employees

2016 2017 2018

1 15 4 14 2 9

12 7 6

Without previous professional expertise From other statutory institutions From other institutions

Fig. 3. Admission of STT officers by institutions 58 6 6 5 3 3 3

2016 2020 2017 20 2018 22

257 228228 263 234 268 238

Employees with higher Employees with higher Employees holding Employees with university education non-university education a doctoral degree secondary education

Fig. 4. Changes in employees of STT by education

111 146 115 148 117 151

2016 2017 2018

Fig. 5. Changes in the number of STT employees by gender

KNAB Special Investigation KAPO Service CBA International Cooperation SSSG

BAK

SFO

NABU

NAC

SIS

DGA

Fig. 6. STT cooperation with the foreign counterparts 59