Money Embezzlement through Kutaisi Parliament?
13 June, 2013
Money Embezzlement through Kutaisi  Parliament?
The money attraction and spending scheme practiced by ex-powers that be on financing construction works of the new Parliament building in Kutaisi, bespeaks of money embezzlement.
The long-withheld financial papers of the new parliament building of Georgia constructed in the third biggest Georgian city Kutaisi under the initiative of the president of Georgia, became available at last. On June 5, 2013 the State Audit Office of Georgia published results of the audit of attraction of financial resources for the parliament
construction and their reasonable handling.
Nobody including the media and non-governmental sector could get any information on the parliament construction expenses during the entire three-year construction period of 2010-2012. The information was tabooed and discussed on the level of conjectures. The new parliament was largely believed to be a money squander however the actual revelation is staggering: The parliamentary building costing around GEL 340 million [as the new authorities disclosed as soon as it took its office by end of October 2012] and implemented by Meno International Ltd was constructed without construction permit; no expertise conclusions on carrying out basic engineering works including the geological-engineering and the technological parts of the project are provided. GEL 73 757 930 was spent on the questioned parliament through governmental orders. Kutaisi municipality was put in charge of attraction due financing for the project initially. Later the State Service Bureau (SSB) replaced Kutaisi municipality. The sum was mainly made up of loans, money taken through privatized or leased state property. The loan part includes GEL 209 270 from the governmental reserve funds [projected for financing unforeseen expenses such as natural disasters or war] and USD 28. 5 million at 11% of yearly yield lent by the state owned Georgian Gas and Oil Corporation (GOGC) from the resources attracted by GOGC after issuance USD 250 million Eurobonds at London Stock Exchange in May of 2012 on purpose to finance the construction of 450 MW Namakhvani Hydro Power Plant; as well as over GEL 17 million lent by Ministry of Finances (MOF) under preferential 2%. Based on the state audit data, the privatization and leased transactions pricing policy looks non-transparent: the money attracted via privatization/lease deals were accumulating on the SSP accounts directly bypassing the state budget that complicated the monitoring of the money turnover. The property was priced by four-five-fold below or over the market price. For instance the Academic Gudushauri Medical Center with over GEL 30 million market-price was privatized for GEL 6.6 million in November of 2011. On the other hand, a non-residential real estate with the adjacent land spot costing GEL63 819 as market price was sold for a million. No audit conclusion was provided. The total sum of the differences between privatized properties’ market and sold prices accrued to around GEL 2 million. And no paper explains where this difference went to. Besides, frequently money was paid to the operator companies without any official writ proving completion of the work in due timelines and manner. Expenses agreed with the operator Meno International for construction of Parliament Palace were amended ten times increasing from GEL 1.5 million to GEL 281 million within 2010-2011 without any prior calculation that makes the state audit presume the paid sum does not square with the real cost of the Parliament Palace. The audit presumes that the construction works approval was a mere formality and the implemented works were far below the par. Ditrikh Muller, a co-founder of Georgian Investment Group, believes the published rap sheet bespeaks of money embezzlement.
“The non-transparent pricing and contradictions in the financial papers indicate that the money was pocketed first and the financial papers were made up afterwards to make the scheme legal,” he said.
Other Stories
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
February 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28