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.