VILNIUS: The cost of hosting an upcoming NATO summit in Lithuania has sparked concerns and raised questions about the transparency of procurement processes. The summit, scheduled to take place in the capital city of Vilnius in July, is expected to be attended by US President Joe Biden and his Ukrainian counterpart, Volodymyr Zelensky.
Reports of the amount being spent by Lithuanian authorities on the major meeting have prompted scrutiny from journalists, leading to headlines that have put pressure on the government to address allegations of transparency issues in procurement.
Last week, Lithuania’s public broadcaster LRT revealed that the country’s Foreign Ministry, responsible for organizing the talks, would spend €6.48 million on renting over 500 luxury cars, most of which are brand new.
Furthermore, Lithuanian journalist Andrius Tapinas raised concerns about the costs of services purchased for the summit. He detailed multi-million euro bills for video conferencing and lighting equipment, which have caught attention given the economic challenges faced by the country, including an economic recession and soaring food prices that have contributed to one in five Lithuanians living in poverty.
Critics have questioned the transparency of the procurement process, pointing to contracts that were awarded through undisclosed negotiations. The Baltic News Service media outlet reported on these concerns, while officials have insisted that the urgency of the process influenced the prices and that the procurement was transparent.
Hosting NATO summits typically requires significant funding for security, transportation, and other hosting costs, especially when high-profile guests are expected to attend. As a result, Vilnius locals will face disruptions, including roadblocks, canceled flights, and reductions in public transport services.
The scrutiny of procurement processes has revealed some notable contracts, such as Up Records, a company set to rent sound equipment for €553,000, despite having an annual income of only €120,000 and reporting a loss of €50,000 in 2021.
Similarly, Screen Service is renting videoconferencing equipment for €1.6 million, double its annual income, while Muzikos Ekspresas will supply lighting for €1.5 million, also twice its annual income, despite reporting a loss of €250,000 last year. Additionally, Telia, a telecoms company, was awarded a €2.70 million contract through undisclosed negotiations.
Lithuania monitoring the situation
The Lithuanian Public Procurement Service has stated that it is monitoring the situation and conducting an assessment of the procurement processes. While acknowledging the risk of overpaying depending on contract timeframes, the number of suppliers, and negotiation skills, the service maintains that transparent conditions were met.
While the Lithuanian government and NATO have not responded to requests for comment, the escalating costs and concerns surrounding procurement transparency highlight the challenges faced by Lithuania in organizing and hosting the event, particularly amid geopolitical and economic instability.
