| The Mazeikiu nafta case is again disturbing Lithuania A 120-page report on the circumstances of the privatization of the Lithuanian concern Mazeikiu Nafta after almost two years of investigation by a parliamentary commission headed by Valentinas Greičiūnas was presented in its final form yesterday to the Seimas of the Republic. The main conclusion of the investigations sounds like a sensation: there was no privatization at all - in fact, the concern, which includes an oil refinery, an offshore oil terminal and an oil pipeline system, was simply transferred to the American company Williams International for undivided, practically uncontrolled management. For the shares, the value of which was determined in the agreement at $150 million, the state did not receive a single cent. Because the first half - $75 million - was paid to the concern, and not to the State Property Fund. And another 75 million, provided by the Americans in the form of a promissory note, according to the terms of the agreement, were written off to compensate for the losses of the enterprise allegedly incurred through no fault of its administration. According to the terms of the contract, in this case they were to be covered by the Lithuanian side. The Russian LUKOIL is cited as the “reason” for the losses, which allegedly deliberately supplied oil intermittently, not in sufficient quantities and at inflated prices.
In turn, Williams and related structures received from Lithuania about $70 million for good management of the enterprise, another $10 million in profit from the resale of the concern's shares to YUKOS, and more than $20 million in interest for loans provided.
The parliamentary report also states that the goals of privatization were not achieved: the enterprise did not begin serious modernization, was unable to conclude long-term contracts for oil supplies and did not ensure profitable operation. For almost three years of management, losses reached 270 million dollars (more than 750 million litas). The inspectors also note that the company’s management was extremely ineffective and irrationally used loans, most of which were provided to it by the Lithuanian government.
The commission places responsibility for all this on the previous authorities - President Valdas Adamkus, the government of Rolandas Paksas, the Sejm, as well as the special services. Among the people on whom the shadow falls is the millionaire Juozas Kazickas, an American Lithuanian who came to Lithuania in the early 1990s and actively contributed to the arrival of Williams.
It should be noted that at the final stage, the work of the commission took place under increased pressure from the United States. A week before its end, US Assistant Secretary of State Elizabeth Jones appeared in Vilnius and told the Lithuanian Foreign Minister that criminalizing the Mazeikiu nafta case would be an unforgivable mistake that would have a bad impact on attracting investment to Lithuania. And the Vice-Speaker of the Seimas, Vytenis Andriukaitis, who put a lot of effort into exposing the “shameful deal” at all its stages, received a letter from the management of Williams, in which he was asked in the form of an ultimatum to take back the words that he allowed himself to address this company if he doesn't want the case to go to court. The letter refers to his emotional statements at one of the commission meetings, at which he called Williams an “unclean, corrupt company” and its representatives in Lithuania “swindlers” and “swindlers”.
Whatever the US involvement, for Lithuania the new scandal is one of the components of the political struggle ahead of the parliamentary elections scheduled for June 13. The leaders of the Conservative Party regarded the work of the commission as a planned political move against their party, the purpose of which is to finally compromise it on the eve of the elections. After the deal with Williams was signed by members of the Conservative government's cabinet in 1999, the party's ratings began to fall rapidly, and now it barely gets the passing minimum of 5% of the vote. Today, conservatives argue that this deal was forced, because there were no other options, and the enterprise was on the verge of bankruptcy.
At the same time, the trial of two ministers and one vice-minister of that government began in the Vilnius District Court on Monday. They are accused of exceeding their powers and abuse of official position. Since the top officials of the state are mentioned in the Mazeikiu nafta case, including the recently removed president as a result of impeachment, Rolandas Paksas, and the favorite of the current snap elections, Valdas Adamkus, the hearings, which begin today in the Seimas, may become the most important factor in the internal political struggle in Lithuania for the long term. They will certainly influence the elections - both presidential, European and parliamentary. The whole question is whether the political elite will want to seriously promote this scandal. After all, here she will have to face the interests of Washington, which openly and regularly patronized Williams. Vladimir SKRIPOV, Vilnius |
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