Government Watch. On the Draft Amendments to the Law on Local Self-Governance

The Lithuanian Free Market Institute has examined draft amendments to the Law on Local Self-Governance aimed at achieving higher quality of municipal audit control system by enabling municipalities to establish their own audit control departments and submitted its comments and proposals to relevant authorities.

In its position paper LFMI stressed that drafters of the law should identify and assess alternative quality control measures and take into account possibilities of using private audit and consulting services rather than further expanding disproportionately large municipal administrations. Moreover, LFMI noted that an increase in permanent staff implies higher costs, but not necessarily quality and efficiency. Also, independence of an external auditor would help to ensure higher transparency.

Therefore, LFMI calls for the rejection of the proposal and a thorough assessment of alternative measures that would ensure higher quality, transparency and efficiency of municipal control audit services without implying significant additional costs.

The full position paper (in Lithuanian) is available at