Member of Parliament could not stand it – will try to prevent the sale of state land at a bargain price

It is proposed to fundamentally reform the auctions for the sale of state and municipal property: increase transparency, extend the registration time, and introduce an “anti-speculation” rule.

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From 2024, after the reform is implemented, over 112 thousand hectares of state land in cities and towns were transferred to municipalities under trust management. Although greater transparency was sought, an assessment conducted by the Special Investigation Service (STT) revealed that in as many as 44% of cases, state or municipal property is sold at the starting price in auctions with only one participant.

The initiator of the legislative amendments, M. Lingė, emphasizes that without clear transparency safeguards, trust in local governments’ ability to manage state property is easily compromised.

“M. Sinkevičius’s ‘success’ at the auction forces a revision of auction regulations. Especially if we do not want to compromise the trust given to municipalities from 2024 to manage state land in cities and towns. A plot bought by the mayor at the starting price of 11 thousand euros from a single buyer at auction and soon sold for 55 thousand euros showed how quickly that trust can be discredited,” says Member of Parliament M. Lingė, pointing out that, for example, in the same year in the same district, other state land auctions attracted an average of five participants, and prices increased by tens of times.

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Therefore, the registered draft law proposes to establish clear rules that would increase competition and fairness in selling state property at auctions:

1. Greater transparency to attract as many participants as possible (announcements at the location, informing owners of neighboring plots).
2. Longer registration time to participate in the auction (up to the end of the auction), eliminating unjustified registration fees.
3. An auction with only one participant is not considered to have taken place.
4. Anti-speculation rule: anyone who quickly resells acquired state property with a large profit must return part of it to the state.
5. Stricter conflict of interest management: those who prepared the plot for sale or had access to inside information could not participate in the auction.

“When state property is sold without competition and soon resold with huge profit, every taxpayer loses. Such cases cast a shadow over all who work honestly. These amendments are so that state property serves everyone, not speculators,” emphasizes M. Lingė.

The registered amendments to the State and Municipal Property Management, Use and Disposal Acts and the Land Act will be submitted for consideration in the Parliament. If approved, it is expected to significantly reduce corruption risks and increase state budget revenues from sold property.

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