Bank loans of ministers and their deputies - საერთაშორისო გამჭვირვალობა - საქართველო
GEO

Bank loans of ministers and their deputies

02 October, 2014

 

Transparency International Georgia tracks the income, expenditures and property owned by state officials on regular bases. This time, we decided to inform the public about bank loans taken by ministers and their deputies, based on data gathered from asset declarations submitted by these state officials.

Our data reveals that several state officials took large bank loans soon after their appointment as government employees. In some cases, the amount of money needed to repay these loans reached half the official’s law prescribed salary, and in a few cases even exceeded it.

Ministers receive a total of GEL 5,000 as their net monthly income, including supplements. The Parliament is currently considering a draft law that would deny ministers the right to receive bonuses. First deputy of a minister has a monthly salary of GEL 2,950, while the remaining deputies get GEL 2,720. These numbers, however, are not final, since issuing of bonuses on top of salaries is a common practice. In some cases, asset declarations do not indicate the amount of money a state official pays each month to pay off a loan. This may be due to the fact that no payments were made during the period covered by these asset declarations, or because the paid off amount did not exceed GEL 3,000. In cases like these, we gathered our data from loan calculators available on bank websites. Therefore, these data should only be considered as an approximation.

Otar Danelia - Minister of Agriculture

Danelia was appointed as the first deputy minister of Agriculture in April 2014, and later as the minister in summer of the same year. The website of the Civil Service Bureau contains two asset declarations submitted by Danelia - one in May 2013, and the other in June 2014.

According to the 2014 asset declaration, Danelia has taken a 15 year mortgage loan worth USD 200,000 in March 2014. The minister has other loans taken at different times that amount to USD 70,000 and GEL 42,500.

The same declaration reveals that the total income received by the minister and his wife from various reimbursable activities in the previous year (2013) was about GEL 120,000, or approximately GEL 10,000 per month. The declaration does not include Danelia’s salaries as the minister or deputy minister, since it does not cover the periods when he worked on these positions. Prior to his move to the Ministry of Agriculture, Danelia worked as the deputy head of the Financial-Economic Department at the Ministry of Internal Affairs. His salary for this position in 2013 amounted to GEL 81,070. Danelia is a shareholder of four companies, but has not declared income from any entrepreneurial activity. His declared savings include USD 7,000 and GEL 4,000 in cash as well as USD 6,500 and GEL 1,500 in bank accounts.

The minister’s property declared in 2014 include a 161.84 square meter apartment on Tabukashvili Street in Tbilisi, a 600 square meter land plot in Shindisi and a 265 square meter unfinished house. (These properties were not mentioned in his 2013 declaration).

Based on a loan calculator available on the website of Bank Republic, the minister must be paying approximately USD 2,000 (GEL 3,450) each month, equal to 69% of his monthly salary, in order to pay off the USD 200,000 mortgage.

Giorgi Kvirikashvili - Minister of Economy and Sustainable Development

Kvirikashvili has been serving as the Minister of Economy and Sustainable Development since October 2012. In November 2012 the minister received a 10 year loan worth USD 120,000 from Kartu Bank.

In the same year, Kvirikashvili received income of GEL 155,000 and USD 55,000 from selling real estate. In his 2013 asset declaration the minister declared income of GEL 34,709 for the previous year (2012). This amount must be his income for the last two months of 2012, since he was appointed as minister towards the end of October. In addition, Kvirikashvili has declared savings of GEL 9,300 in cash and GEL 3,700 in his bank account.

The minister has USD 1,586 (about GEL 2,800), or 56% of his monthly salary, indicated as a monthly payoff for his loan.

Aleksandre Chikaidze - Minister of Internal Affairs

Chikaidze was appointed as the minister of Internal Affairs towards the end of November 2013. The minister took a 10 year mortgage loan worth USD 140,000 from the Bank of Georgia in the same month. According to the bank’s loan calculator, Chikaidze must be paying a monthly USD 1,700 (about GEL 2,600), or 52% of his monthly salary, in order to pay off the mortgage. In his 2014 asset declaration the minister declared having received income of GEL 67,000, or GEL 5,580 per month, from various reimbursable activities in the previous year (2013).

In November 2013, shortly after his appointment, Chikaidze purchased a 293 square meter unfinished apartment on Mitskevich Street in Tbilisi for USD 169,000.

Sozar Subari – Minister of Internally Displaced Persons, Accommodation and Refugees

Subari had served as the Minister of Corrections from October 2012 to July 2014, when he became the Minister of IDPs, Accommodation and Refugees.

In March 2013, Subari took a 10 year mortgage loan worth USD 140,000 from Kartu Bank and purchased a 187 square meter apartment on Sulkhan Tsintsadze Street in Tbilisi for USD 190,000. The minister’s wife is currently indicated as the owner of this apartment.

Paying off a mortgage this size would require the minister to pay a monthly USD 1,700 (about GEL 2,600), or 52% of his monthly salary. In his asset declaration covering the year 2012 Subari has declared his and his wife’s total income of GEL 30,527, or an average of GEL 2,543 per month. In addition, the minister and his wife have declared savings of GEL 7,200 and USD 600 in their bank accounts.

Dimitri Makhatadze – First Deputy Minister of Labour, Health and Social Affairs

Makhatadze was appointed as a deputy minister in May 2013. Before that, he was the director and shareholder of LTD Medi Club Georgia. In his asset declaration the deputy minister has indicated having a 15 year mortgage loan worth USD 315,000 since October 2012. According to Makhatadze’s 2013 and 2014 asset declarations, he has received a total income of about GEL 240,000 while being the director and shareholder of LTD Medi Club Georgiax in 2012 and 2013 as well as GEL 45,595 in 2013 while serving as the deputy minister. Makhatadze and his wife have also declared savings of USD 7,500, GEL 5,000 and EUR 8,000 in cash as well as about GEL 2,000 in bank accounts.

The deputy minister has USD 21,584 indicated as the annual payoff for his loan. This amounts to about USD 1,798 per month (GEL 3,150), or 106% of the deputy minister’s official monthly salary.

Davit Khutsishvili - Deputy Minister of Internal Affairs

Khutsishvili has been serving as the deputy minister since November 2013. According to his 2013 asset declaration, the deputy minister has a 10 year mortgage loan worth USD 190,000 since 2010, with an annual payoff of USD 33,189, or USD 4,800 (175% of the deputy minister’s official monthly salary) per month.

The deputy minister and his wife have indicated having received an income of GEL 110,000 from various reimbursable activities in the previous year (2012). The 2013 asset declaration does not include Khutsishvili’s income received from serving as a deputy minister, since the declaration covers a period prior to his appointment. The deputy minister and his wife have also declared savings of EUR 18,296 in their bank accounts.

Zurab Azmaiparashvili - Deputy Minister of Sport and Youth Affairs

Azmaiparashvili has been serving as the deputy minister since November 2012. According to his 2013 asset declaration, a 10 year loan worth GEL 275,000 is registered in his name since August 2013. The deputy minister has declared about GEL 38,000 as his total income in the previous year (2012). Azmaiparashvili and his wife have also declared savings of about GEL 32,000, USD 17,380, EUR 8,057 and 40,000 Singapore dollars (about USD 32,000) in their bank accounts.

According to a loan calculator available at the website of TBC Bank, a loan of GEL 275,000 corresponds to a monthly payoff of about GEL 3,500, or 118% of the deputy minister’s monthly salary.

Mikheil Janelidze - Deputy Minister of Economy and Sustainable Development

According to the Ministry’s website, Janelidze has been serving as a deputy minister since the end of 2011. Janelidze submitted his 2012 asset declaration as a former deputy, and his 2013 declaration as an acting deputy minister.

Two loans are registered on Janelidze’s name since November 2013, a 15 year loan worth GEL 260,000 and a 3 year loan worth USD 28,600. The same declaration reveals that the deputy minister and his wife have received a total income of GEL 147,000 (in the previous year), including his wife’s income from entrepreneurial activities. They have also declared savings of approximately USD 7,000 and GEL 47,000.

The deputy minister must be paying a monthly GEL 2,600, or 95% of his monthly salary, in order to pay off his GEL 260,000 loan.

Davit Galegashvili - Deputy Minister of Agriculture

Galegashvili has been serving as the deputy minister of agriculture since November 2012. According to his 2014 asset declaration, a USD 164,000 loan is registered on the deputy minister’s name, while his wife has loans worth a total of USD 195,000. Galegashvili and his wife took all of these loans in 2010 and 2012, before his appointment as a state official. According to the same asset declaration, the annual payoff for these loans is about USD 63,000, which amounts to a monthly GEL 9,185, or three times as much (337%) as the deputy minister’s monthly salary.

The same declaration reveals that Galegashvili received a salary of GEL 62,288 as a deputy minister in 2013. He has also declared savings of GEL 127,000 in cash and approximately USD 6,000 and 5,500 GEL in bank accounts.

In his 2013 asset declaration, Galegashvili indicated having received income of GEL 130,000 from entrepreneurial activities. No such income is indicated in the 2014 declaration. Galegashvili holds shares in two companies – LTD Company K2 and LTD Herios.

Author: TI Georgia