Paluckas Family Business Fails to Repay EU Funding

by Chief Editor

The company “Dankora,” controlled by the family of former Prime Minister Gintautas Paluckas, has failed to return over 136,000 euros in European Union support despite a public pledge to do so. Following an investigation into the firm’s misuse of funds for an unbuilt charging station project, authorities have frozen assets belonging to both the company and the former premier’s brother, Danas Paluckas.

Failure to honor repayment pledges

In July 2025, “Dankora” publicly committed to terminating its support agreement with the National Paying Agency (NMA) after allegations surfaced regarding the use of EU funds. According to NMA Communications Department head Vaiva Kovaliūnienė, the agency informed the company that termination was only possible upon the return of all disbursed funds. To date, those funds have not been returned to the NMA.

The project, which was intended to develop electric vehicle and ship charging infrastructure in Drukių village, remained unbuilt by the official July 30, 2025, deadline. An on-the-ground report from “Delfi” on July 31, 2025, confirmed that the promised infrastructure was not in place.

Did You Know?
The “Dankora” case became a significant political factor, serving as the final development preceding Gintautas Paluckas’s resignation from his position as Prime Minister.

Asset freezes and ongoing investigations

The NMA has sought legal intervention to recover the disbursed support. According to Vaiva Kovaliūnienė, the agency requested that a prosecutor impose temporary ownership restrictions on “Dankora” and involved parties. The request was granted, and actions to recover the funds are currently paused pending the conclusion of an investigation by the Financial Crime Investigation Service (FNTT).

Asset freezes and ongoing investigations

Property records indicate that while the land in Drukių village purchased for the project remains unencumbered by the freeze, other assets have been impacted. General Prosecutor’s Office records show that an arrest was placed in January 2026 on a homestead in the Šilutės district and a nearly 3-hectare agricultural plot owned by the former premier’s brother, Danas Paluckas. When contacted for comment regarding the asset freeze and the status of the EU funds, Danas Paluckas stated he would not provide any comments.

Expert Insight:
The legal and financial fallout surrounding the Paluckas family business reflects a broader, systemic trend where political accountability is tested by the scrutiny of public funds. The transition from administrative disputes with agencies like the NMA to full-scale criminal investigations by the FNTT and STT suggests that the stakes have moved well beyond simple contractual non-compliance, potentially impacting the long-term political viability of those involved.

Broader legal implications

The “Dankora” investigation is part of a wider FNTT inquiry into potential credit fraud involving the Paluckas family, which also examines a 200,000-euro preferential loan granted to the company “Garnis” by the national development bank ILTE. Gintautas Paluckas, who holds a 49 percent stake in “Garnis,” has previously maintained he was unaware of business ties between his brother’s family firm and his own.

GINTAUTAS PALUCKAS. TYRIMAI | užsakytas PAMINKLO IŠNIEKINIMAS | PL pasienis | Tiek žinių

Separately, a Special Investigation Service (STT) inquiry has reached the Seimas, where lawmakers voted in May 2026 to lift Gintautas Paluckas’s legal immunity. The investigation concerns allegations of illicit enrichment totaling over 344,000 euros involving the former premier and his spouse. While Gintautas Paluckas has stated he will defend himself through legal means, his firm “Garnis” is currently facing bankruptcy proceedings initiated by the State Tax Inspectorate, with the first hearing scheduled for June 22, 2026.

Frequently Asked Questions

Why did the NMA freeze the assets of “Dankora”?
The NMA requested the freeze after the company failed to return over 136,000 euros in EU support funds despite a formal notice that repayment was a mandatory condition for terminating their project contract.

Frequently Asked Questions

What is the status of the charging station project in Drukių village?
The project was not implemented by the July 30, 2025, deadline, and a report from “Delfi” confirmed the following day that the promised charging infrastructure had not been built.

Are there other ongoing investigations involving Gintautas Paluckas?
Yes, besides the FNTT investigation into “Dankora” and “Garnis,” the STT is conducting an investigation into alleged illicit enrichment, for which the Seimas lifted the former premier’s legal immunity in May 2026.

How will the upcoming bankruptcy hearing for “Garnis” influence the broader investigation into the family’s business dealings?

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