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Lithuanian Prime Minister Gindautas Paluckas announced his resignation as an investigation into possible financial irregularities involving his companies is underway.
"I informed the president about an hour ago that I have made the decision to resign as prime minister," Paluckas said in a statement. He added that he was also resigning as leader of the Social Democratic Party.
"Despite my decision to resign from my current duties, I will continue to defend my honor and dignity and await the results of the investigations, which I am sure will distinguish facts from innuendo," he said.
Earlier, local media reported that the Lithuanian Financial Crimes Investigation Service (FNTT) had searched the offices of Dankora, a company owned by Palucka's sister-in-law. The company used European Union money to purchase battery systems from Garnis, a company partly owned by Palucka.
Investigative journalists in Lithuania discovered in May that Garnis had received a subsidized state loan while Paluckas was already prime minister. The country's authorities then launched an investigation, which is ongoing.
Gintautas Paluckas was previously fined for abuse of power when he was the head of the Vilnius municipal administration.
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