Every week, the Government of Georgia makes decisions regarding the transfer of state property to companies or individuals. The decrees adopted have not been published for three years against the requirements of the law, due to which it is unclear who received a piece of property, the terms of such transactions, or to whom the government grants benefits. Privatization of state property carries high risks of corruption, due to which lack of transparency in this area is inadmissible.

14 of the 32 issues discussed at the government meetings in December 2023 were related to the privatization of state property, 6 of which raise certain questions:

Anonymous privatization

The issues to be considered included two decisions on privatization about which we know nothing: neither the description of the property to be privatized nor the identity of the recipient of the property or the terms involved.

Somgos Company LLC

On December 4, the Government of Georgia changed the terms of privatization of "Somgos Company" LLC, owned by the businessman Vano Chkhartishvili, who is close to Bidzina Ivanishvili. In 2014, the government sold a 35,000 sq.m. plot of land in Sighnaghi through direct privatization, with the condition to build a hotel. It is likely that the government's decision implies the postponement of investment obligations. The details of these obligations are unknown, as the relevant decree has not been made public, which goes against the requirements of the law.

Global Enterprises LLC

On December 4, the government made a decision to implement certain measures to facilitate the activities of "Global Enterprises” LLC. In 2018, "Global Enterprises" LLC acquired 15,512 sq.m. of land from the state, along with five buildings, for a symbolic price of 1 GEL, under the condition of building a salt factory. Additionally, the company received funds from the state program “Enterprise Georgia”. It is unclear what measures the government intends to take in benefit to this company.

Nikora LLC

On December 4, the government also changed the terms of privatization for "Nikora" LLC. The 8925 sq.m. real estate in Tbilisi was transferred to the company on December 14, 2021, the terms of privatization for which are also unknown because the relevant decree was not published.

Businessman Lasha Papashvili

On December 19, the government changed the terms of privatization for businessman Lasha Papashvili. In 2009, Lasha Papashvili acquired a 78,998 sq.m. plot of land with buildings in Abastumani under the condition of building a hotel. After the condition was not fulfilled, the government made changes to the privatization project three times in favor of Papashvili: in 2014, 2016, and 2018. The government's decision in December 2023 may also pertain to the next review of investment obligations; however, this time the details are unknown, as the government does not make the relevant document public.

We call on the Administration of the Government of Georgia to act in accordance with the legislation of Georgia, to abandon the unlawful practice of concealing decrees of the Government and orders of the Prime Minister and make these documents public.