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2013 02 18

Prosecutor: Merger might help Labor Party escape fraud charges

It is unclear whether the Labor Party might avoid prosecution after a merger with the Order and Justice Party as it will depend on specific merger conditions, a prosecutor says.
Saulius Verseckas
Saulius Verseckas / Irmanto Gelūno / BNS nuotr.

"Some problems might arise here regarding the responsibility of the legal entity, depending on the kind of merger and duties and responsibilities that will be handed over. It's hard to make predictions. In essence, if a legal entity [Labor Party] no longer exists, then there will be no responsibility. But since there will be a merger, rights and duties will be handed over to a new legal entity, so perhaps responsibility will still apply," Saulius Verseckas, a prosecutor of the Prosecutor General's Office and prosecuting in the Labor Party' case, told BNS on Monday.

Not only the party's leader but also the party as a legal entity itself are standing trial in the fraudulent bookkeeping case.

Last Thursday, Vilnius Regional Court finished hearing witness testimonies and said the defendants would be given the opportunity to give testimonies.

Prosecutors say the Labour Party's financial documentation for the 2004-2006 period failed to include about LTL 25 million (EUR 7.3 million) in income and about LTL 23 million in spending related with property, commitments, and structural changes, and also failed to pay taxes of around LTL 4 million.

MPs Viktor Uspaskich, the party leader, Vytautas Gapšys and Vitalija Vonžutaitė, three of the four defendants in the case, were stripped of their legal immunity on December 20.

Uspaskich, Gapšys, and Vonžutaitė are standing trial in Vilnius Regional Court for organizing fraudulent bookkeeping while holding executive positions in the party in 2004-2006. They are charged with fraud. In addition to the three MPs, charges were brought against the Labor Party itself and its former accountant Marina Liutkevičienė.

The trial started on April 14, 2008, and has continued ever since with lengthy adjournments.

The ruling Labor Party and Order and Justice Party are holding merge talks. Presidiums and councils of both parties are holding emergency meetings on Sunday.

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