Four people were detained in a European Public Prosecutor’s Office (EPPO) investigation involving Garnis, a company partly owned by former Lithuanian prime minister Gintautas Paluckas, the Financial Crime Investigation Service (FNTT) said, LRT.lt reported on August 14.

As reported by bne IntelliNews, Paluckas stepped down as both prime minister and leader of the Social Democrats (LSDP) after allegations of dubious business activities.

FNTT says five suspects in total have been charged. Authorities have not named them, but LNK TV reported that Paluckas’ brother, Danas Paluckas, was among those detained. His wife owns Dankora, another company under investigation. Dankora’s director, Kostas Mikalajunas, is also listed as a suspect.

According to the FNTT, the pre-trial probe concerns suspected credit fraud, document forgery, bribery and corruption by an organised group. The case includes a €200,000 low-interest loan from state development bank INVEGA to Garnis, and over €136,000 in allegedly fraudulent EU funding claimed by Dankora. Other details remain undisclosed.

Investigators have conducted at least 10 searches in Vilnius, Klaipeda and other regions, seizing documents and other evidence from homes, workplaces and vehicles. The final number of suspects is still unclear, LRT.lt said.

In February, Dankora announced a procurement of battery systems funded by EU money. Garnis – in which Gintautas Paluckas holds a 49% stake – was the sole bidder and won the tender. Mikalajunas has insisted all procurement was transparent and said Paluckas “does not participate in the company’s activities in any form”.

Dankora later said it would return the EU funding “to protect the privacy and peace of mind” of managers’ and shareholders’ families and would continue the project with its own resources, LRT.lt reported.