LITHUANIAN PRESIDENT FORCES CABINET SHAKE-UP

C O N F I D E N T I A L SECTION 01 OF 02 VILNIUS 001496

SIPDIS

STATE FOR EUR/NB

E.O. 12958: DECL: 12/07/2014
TAGS: PGOV PREL LH
SUBJECT: LITHUANIAN PRESIDENT FORCES CABINET SHAKE-UP

REF: A. VILNIUS 1455

B. 12/03 COHEN-CEFKIN EMAIL

Classified By: Pol/Econ Officer Christian Yarnell
for Reasons 1.4 (b) and (d)


1. (C) Summary: President Valdas Adamkus scored a major
political victory on December 7, forcing the ruling coalition
of PM Algirdas Brazauskas to replace two Cabinet candidates.
Viktoras Muntianas and Rimantas Vaitkus are now out of the
line-up, and, if cleared by investigative services, Labor
Party member Gintaras Furmanavicius and Social Democrat
Juozas Antanavicius will serve as Interior Minister and
Education Minister, respectively. Adamkus signed a decree on
the appointment of a new government on December 7, with
parliamentary approval expected early during the week of
December 13. The nomination of Furmanavicius as Interior
Minister is a concern, as he has links to indicted swindler
Gintaras Petrikas, who is currently facing extradition
proceedings in California. End Summary.

--------------
Victory for President
--------------


2. (U) Prime Minister Algirdas Brazauskas, after a four-hour
negotiating session with President Valdas Adamkus and Labor
Party leader Viktor Uspaskich on December 7, yielded to the
President's concerns on the proposed Cabinet (refs A and B)
and agreed to replace two of his proposed Ministers. Adamkus
had singled out these two candidates, Viktoras Muntianas,
Labor Party candidate for Interior Minister, and Rimantas
Vaitkus, Social Democratic candidate for Education Minister,
as being particularly problematic in the eyes of the
Presidency (ref A). Labor Party head Viktor Uspaskich
announced that Muntianas, now excluded from the Cabinet,
would instead receive one of the five Deputy Speaker of
Parliament positions.


3. (C) The coalition's concession on the Cabinet was a major
victory for Adamkus, who is riding high here thanks in large
part to his role as mediator in Ukraine. Political analysts
describe Adamkus's victory as a coup of sorts, as the
Lithuanian Constitution does not explicitly provide the
President with substantive powers over the formation of the
Cabinet. Uspaskich had threatened to withdraw to the
opposition if Adamkus did not approve Muntianas, his deputy
in the Party and former mayor of Uspaskich's hometown of
Kedainiai. One of Adamkus's domestic policy advisors and
member of the negotiating team told us that the Presidency
was in fact "surprised" by the result and had not expected
the coalition to yield on Muntianas.

--------------
Revised Cabinet List
--------------


4. (U) Adamkus signed a decree on the appointment of a new
government immediately following the announcement. Adamkus
will meet the compromise Cabinet candidates -- Gintaras
Furmanavicius (Labor),now proposed for Minister of Interior,
and Juozas Antanavicius (Social Democrat),candidate for
Minister of Education -- on Friday, December 10 following his
return from the Baltic Trade Investment Mission in London.
The pair will also have to pass a screening by Lithuania's
Special Investigative Service (STT). Adamkus will likely
present the decree to Parliament without delay, however, and
most observers expect Parliament to confirm the new Cabinet
and its program early in the week of December 13.


5. (U) The revised list of Cabinet members is as follows:

-- Prime Minister: Algirdas Brazauskas (Social Democrat)

-- Agriculture: Kazimiera Prunskiene (Peasant Party)
-- Culture: Vladimiras Prudnikovas (Labor)
-- Defense: Gediminas Kirkilas (Social Democrat)
-- Economy: Viktor Uspaskich (Labor)
-- Education: Juozas Antanavicius (Social Democrat)
-- Environment: Arunas Kundrotas (Social Democrat)
-- Finance: Algirdas Butkevicius (Social Democrat)
-- Foreign Affairs: Antanas Valionis (New Union)
-- Health: Zilvinas Padaiga (Labor)
-- Interior: Gintaras Jonas Furmanavicius (Labor)
-- Justice: Gintautas Buzinskas (Labor)
-- Labor: Vilija Blinkeviciute (New Union)
-- Transportation: Zigmantas Balcytis (Social Democrat)

--------------
Controversial Interior Minister
--------------

6. (SBU) Furmanavicius, formerly in charge of public
relations for telecommunications giant Lietuvos Telekomas and
with no previous government or law enforcement experience, is
himself a controversial figure. From 1992-1997,
Furmanavicius occupied a key post in the Lithuanian firm
EBSW, working closely with EBSW owner Gintaras Petrikas.
Petrikas is wanted in Lithuania for embezzling over 80
million litas (approximately 30 million USD) as head of EBSW.
Petrikas fled to the United States to avoid arrest, but
Californian authorities arrested him in May. Petrikas is
currently fighting extradition proceedings in Los Angeles.


7. (C) Adamkus stated that he knew of Furmanavicius's work
for EBSW but that, according to the Presidency's information,
"there is no direct responsibility of his for the holding's
activities." One of the President's advisors told us that
they do not expect any difficulties with Furmanavicius's
candidacy, sans a red flag from the STT. Should the STT
determine that Furmanavicius is unfit to serve as a Cabinet
minister, he noted, the coalition would have to find "a
replacement to the replacement."

-------------- --------------
Comment: Furmanavicius' Link to Petrikas a Concern
-------------- --------------


8. (C) Despite Furmanavicius's checkered past, he is likely
to pass the screening of the investigative services.
Ironically, as Minister of Interior, Furmanavicius would have
a role in executing the extradition of his old colleague
Petrikas, an important goal for us and the Lithuanian
authorities. There is a real possibility that a conflict of
interest could affect the celerity and vigor with which the
GOL pursues Petrikas's extradition. We will continue to work
with the GOL in order to complete the extradition.
Kelly