GEO

A business partner of the Chairperson of the City Council of Tsalenjikha wins tenders without competition in Tsalenjikha

02 October, 2019

 

TI Georgia continues to monitor the process of public procurements. Due to the existence of possible signs of corruption, this time we have directed our attention to tenders conducted by the Tsalenjikha Municipality where they are won by a company of Bagrat Gvinjilia, a business partner of the Chairperson of the City Council of Tsalenjikha, Temur Gvinjilia, who has the same surname.  

Temur Gvinjilia is a member of the Georgian Dream – Democratic Georgia party. He has held the position of the Chairperson of the City Council since July 2014. In several of his recent asset declarations, including in the one he filled out in September 2018, he failed to indicate that he owns a 30% stake in She-Li LLC and a 20% stake in Tsalenjikhis Sagzao LLC, by which he violated the requirements of the Law on Conflict of Interest and Corruption in Public Service: a public official is obliged to fully include information about his/her own and his/her family members’ property and economic interests in his/her asset declaration.[1]

We can assume that Temur Gvinjilia deliberately failed to include the companies in which he owns stakes in his declaration in order not to disclose that his business partner, Bagrat Gvinjilia (they are partners in Tsalenjikhis Sagzao LLC), takes part in tenders announced by the Tsalenjikha Municipality.

Bagrat Gvinjilia has, since 2011, been the director of Tsalenjikhis Sagzao Sammartvelo LLC, whose 100% stake is owned by Odik Gvinjilia, while the limited liability company itself actively participates in tenders, and, among these, wins tenders announced by the Tsalenjikha Municipality.

Tsalenjikhis Sagzao Sammartvelo LLC has taken part in 117 tenders in total since 2011, out of which it won 49 tenders. The total value of the tenders won by this company amounts to GEL 12,498,966, almost half (49.27%) of which were tenders announced by the Tsalenjikha Municipality. Since 2011, Tsalenjikhis Sagzao Sammartvelo LLC has won 16 tenders – with a total value of GEL 6,159,039 – announced by the Tsalenjikha Municipality, while more than 82% of this amount (GEL 5,106,732) was obtained from 12 tenders won after Temur Gvinjilia was elected the Chairperson of the City Council.     

It should also be noted that, in all the 16 tenders won except 3, Tsalenjikhis Sagzao Sammartvelo didn’t have any competitors.   

As for simplified procurements, Tsalenjikhis Sagzao Sammartvelo has only concluded 8 such contracts with the Tsalenjikha Municipality, only one of which was concluded since Temur Gvinjilia was elected the Chairperson of the City Council, and its value  amounted to GEL 14,000.  

In the opinion of TI Georgia, the winning of tenders by Tsalenjikhis Sagzao Sammartvelo LLC raises doubts that the terms of the tenders might have been adapted for the concrete supplier. Therefore, we call on the Anti-Corruption Agency of the State Security Service to study each of the tenders won by Tsalenjikhis Sagzao Sammartvelo LLC and to establish whether or not their terms were adapted for this limited liability company.

 


[1] Article 14, Paragraph 10