Auditors have slammed Vilnius municipal heating company, Vilniaus Šilumos Tinklai (VŠT, Vilnius Heating Grid), for extending multi-million-euro loans to Air Lituanica, a municipal airline that went under last year.
Air Lituanica
© DELFI / Šarūnas Mažeika

The municipal Control and Audit Service investigated the heating company's operations between 2013 and 2015 and pointed out a number of mismanagement cases and rule violations.

The auditors' report says that the company loaned €2.14 million to Air Lituanica, another municipal company which went bankrupt last May.

"In view of the company's [VŠT] goal and targets as well as the circumstances of giving out the loans and the fact that the money was never returned, the decisions made by the company's management to issue new loans to Air Lituanica are in breach of the Civil Code," the auditors' report reads. "The funds were used irrationally, inefficiently and without clear economic rationale."

The auditors also criticized VŠT's spending on coffee, renting out a tennis court and paying out bonuses to its managers despite the fact that the company was running a deficit.

The company also overpaid more than three times on one €2.8m public procurement contract, the report says.

The violations occurred under the management of Arūnas Keserauskas, who headed the company until August last year.

Narvesen stores and Lietuvos Spauda kiosks start selling Bitcoins

Narvesen stores and Lietuvos Spauda kiosks are launching the sale of Bitcoin vouchers that can...

Lithuanian meat processing company allowed to export beef to China

Krekenavos Agrofirma , a meat processing company owned by the family of Viktor Uspaskich, the founder...

Former Lithuanian EU diplomat Usackas joins Avia Solutions Group

Vygaudas Usackas , a former long-time Lithuanian and EU diplomat, on Tuesday joined the board of...

Lithuania hopes to attract new biotechnology investment

Lithuania's foreign investment promoting agency Investuok Lietuvoje ( Invest Lithuania ) hopes to...

Analyst: Lithuanian retail fuel prices may rise 3-4 cents in wake of Saudi oil attacks

SEB Lithuania's analyst Tadas Povilauskas says a surge in crude prices following last weekend's...