The Property Bank of Lithuania has officially terminated its contract with the contractor Vilungės Statyba, which was handling renovations for a rehabilitation center in Trakai, effective November 2023. This decision comes after the Lithuanian Court of Appeal upheld a ruling from August 2025 that dismissed Vilungės Statyba's appeal against the termination. The contract was originally aimed at modernizing the rehabilitation center for officials, following an agreement between the Property Bank and the Ministry of Internal Affairs, signed back in late 2016.

The project launched in March 2021 after a public tender, where Vilungės Statyba won the contract valued at nearly 5.9 million euros. However, during the execution of the project, significant discrepancies and gross violations of the contract terms were observed. Such compliance issues have led to the decision to terminate the contract, highlighting the challenges of managing government projects and ensuring contractors meet the set standards.

This situation raises important discussions about accountability in public contracts and the consequences that companies may face when failing to adhere to agreement terms. The Property Bank's decisive action in this matter may also serve as a warning to other contractors about the rigorous standards expected in public service projects and the legal ramifications of non-compliance in future tenders.