The owner of four blacklisted companies wins tenders with a new, fifth company - საერთაშორისო გამჭვირვალობა - საქართველო
GEO

The owner of four blacklisted companies wins tenders with a new, fifth company

19 December, 2023

The businessman Aleksandre Baratashvili has used the well-known flaw of the public procurement blacklist four times on succession and without any problems. After his four companies were put on the blacklist one after another, he founded the fifth company and obtained public procurement contracts in several weeks. In total, the companies of Aleksandre Baratashvili have obtained procurement contracts worth GEL 4.5 million.  

Baratashvili Construction Company LLC was registered on June 21, 2023, and, within five months after the registration, it obtained 3 simplified procurement contracts with a total value of GEL 372,000. One of these contracts was awarded by the Municipal Administration of the Didube District of Tbilisi one month after the registration. In the same period, the company took part in 4 electronic tenders and won all the four of them without competition, including 1 tender won three weeks after the registration. All the tenders had been announced by the Municipal Administration of the Didube District.  

In total, this company has obtained 7 contracts with a total value of GEL 500,000 through simplified procurements and electronic tenders.

The 100% stake in Baratashvili Construction Company LLC is owned by Aleksandre Baratashvili, who also owns four other companies: Real Energy, Amapola, Champion and Robot+. In the past years, these companies were put on the blacklist of the State Procurement Agency one after another due to inadequate fulfillment of obligations taken in public procurements.  

  1. Real Energy LLC was blacklisted in October 2020 due to inadequate fulfillment of contracts concluded with the Municipal Administration of the Didube District.
  2. Amapola LLC was put on the blacklist in April 2021 due to inadequate fulfillment of 7 contracts concluded with various procuring organizations.  
  3. Champion LLC was registered in October 2021, and it was blacklisted in November 2022 due to inadequate fulfilment of 3 contracts concluded with various procuring organizations.
  4. Robot+ LLC was registered in October 2022, and it was put on the blacklist in June 2023 due to non-fulfillment of a contract concluded with Hermesi LLC.

This case demonstrates the ineffective operation of the current procedures for maintaining the blacklist, whose change TI Georgia has been demanding for years.

The new Law on Public Procurement, which enters into force from January 1, 2025, improves the procedures for maintaining the blacklist, although it still remains possible for the owner of a blacklisted company to take part in public procurements through another company. Therefore, it is necessary to restrict the participation in public procurements of all those companies in which a stake is owned by a full or partial owner of a blacklisted company.