Lithuanian court fines agency over forged guarantee in Rukla barracks deal

The Lithuanian appellate court has upheld a decision to fine the Infrastructure Management Agency nearly 0.5 million euros following irregularities in a public procurement process for the renovation of barracks in Rukla. The project is intended to support German troops stationed in the region.

The dispute centers on the winning bidder, Consolius LT, which submitted a forged bank guarantee from a Luxembourg branch of Sumitomo Mitsui Trust Bank. The court found that the agency failed to exercise sufficient diligence, noting that the contract was signed even after the agency received confirmation that the guarantee was fraudulent.

Despite the fine, the court ruled that the contract itself cannot be invalidated. Judges cited Lithuania’s complex geopolitical situation and the deteriorating security environment in the region, stating that canceling the deal could pose a real threat to ensuring adequate conditions for allied forces and might violate international obligations to NATO and Germany.