Lithuania cabinet resigns as coalition breaks up

LITHUANIA: Lithuania's government collapsed yesterday amid allegations of corruption by cabinet ministers, raising the possibility of fresh elections in the politically turbulent Baltic state.

Prime minister Algirdas Brazauskas, leader of the Social Democrtas, resigned after the Labour Party withdrew its five ministers from government, following accusations that two of them had misused official funds.

"I don't see any possibility to carry on my duties, and resign together with the cabinet," said Mr Brazauskas, after Labour pulled out of the coalition in response to comments made by President Valdas Adamkus about two of its senior members.

He said he could not trust health minister Zilvinas Padaiga, who is suspected of illegally receiving cash from Labour Party coffers, and culture minister Vladimiras Prudnikovas, who allegedly paid for family trips with state funds. Both deny the charges.

"We cannot tolerate the current political situation in Lithuania, where the president is trying to ruin the work of the government and parliament," said Mr Padaiga. "That's why we are leaving the government." The withdrawal of Labour, which has 31 seats in the fractious 141-seat parliament, brought down a coalition already reeling from the loss of the Social Liberals, who pulled out in April after their leader was ousted as parliamentary speaker.

Lithuania joined the EU in 2004 and enjoys robust economic growth, but has seen 13 governments fall since regaining independence from the Soviet Union 15 years ago, many of them amid recrimination and scandal.

The latest row has halted Labour's rapid rise to power under the Russian-born "Gherkin King", pickles magnate Viktor Uspaskich.

Police recently raided Labour's offices and Mr Uspaskich's apartment and seized computers and files. They are investigating whether the party has taken kickbacks from firms seeking EU funds or received cash from dubious Russian-based businesses.

Mr Uspaskich - who resigned as economy minister last year after allegations that he misused his office to promote private business interests - left for Russia soon after the raids and has not returned to Lithuania.

He denies any wrongdoing and accuses shady political and intelligence elements of trying to discredit him, much as former president Rolandas Paskas did in 2004 when impeached and ousted over alleged links to the Russian mafia and secret services.

President Adamkus now has 15 days to name a new prime minister who, if confirmed by the parliament, would nominate a new cabinet for approval by the head of state.

If that process fails, new elections are likely.