The public must know whom the government transfers property to and on what terms - საერთაშორისო გამჭვირვალობა - საქართველო

The public must know whom the government transfers property to and on what terms

29 November, 2023

Every Monday, the Government of Georgia makes decisions regarding the transfer of state property to companies or individuals through direct privatization or the alleviation of obligations incurred at the time of receiving state property, all on favorable terms. The decrees adopted have not been published for three years, due to which it is unclear who received a piece of property, the terms of such transactions, or whose investment terms were alleviated and how. Privatization of state property carries high risks of corruption, due to which lack of transparency in this area is inadmissible.

At the meeting of the Government of November 20, 2023, 5 of the 9 issues to be considered dealt with privatization of state property, 4 of which raise certain questions:

  1. Anonymous privatization

The issues to be considered included a decision 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.  

  1. Dighomi HPP LLC

By the decree of November 20, the Government of Georgia transferred a piece of state property – whose description and terms of privatization are unknown – to Dighomi HPP LLC with the right of superficies. An owner of a stake and director of Dighomi HPP LLC, Tariel Giorgadze, is a large donor to the Georgian Dream – he donated GEL 60,000 to the party before the parliamentary elections of 2020.

  1. Physical person Valerian Narimanidze

On November 20, the Government decided to take certain measures to benefit the activities of physical person Valerian Narimanidze. It is unknown what activities are meant, as the corresponding decree has not been published. However, as a rule, such decrees imply the revision or forgiveness of non-fulfilment of obligations imposed.  

In this context, it is noteworthy that by the Government’s decree of 2019, Valerian Narimanidze had received a land plot with an area of GEL 1,467 sq. m in the Dusheti Municipality on a 25-year lease in return for GEL 5,050, with the condition for privatization being making an investment of GEL 500,000 and building a tourism center and a hotel within two years.

It is imperative to publish the corresponding decree, so that we know what is meant by promotion of activities and whether or not the state is forgiving Valerian Narimanidze any unfulfilled obligations.

  1. Rezo Kvaratskhelia LLC

By the decision of the Government, the terms of privatization in relation to Rezo Kvaratskhelia LLC will be revised, although the details remain unknown. As early as 2012, Rezo Kvaratskhelia LLC was given a piece of state property – a land plot with an area of 50,000 sq. m. In 2018, the property was given back to the state, however, on November 20, 2023, the Government decided to offer the company a certain privilege that is unknown to the public. 

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