GEO

Voluntary Gifts or State Robbery

24 April, 2013

 

Information requested by Transparency International Georgia (TI Georgia) from the Ministry of Economy and Sustainable Development of Georgia has revealed very interesting figures. It was discovered that the value of property given to the state as a gift during 2004-2005 amounted to a staggering GEL 4,449,292 and USD 218,500. In 2006 this figure equalled GEL 9,990,898, USD 5,616,800 and EUR 10,100 in total, and in 2007 it exceeded GEL123,396,887 and USD 167,780. Real estate and stakes in enterprises were also gifted to the state during this period. During 2004-2007, the total value of property given to the state as a gift amounted to GEL 137,837,077, USD 6,003,080 and EUR 10,100.   

While processing the information, we discovered several suspicious cases. It became clear that it was not only state companies, municipalities, and self-governing cities, but also private companies and private individuals,  who had a “wish” to give valuable property to the state either as a gift, or at a token price of GEL 1.     

The Years 2004-2005  

During this period, there was a case when a private individual  transferred an area of 3,694 sq. meters valued at GEL 220,000 in the resort town of Sairme to the state, free of charge. Another individual registered a plot of 1.5 hectares, valued at the time at GEL 140,000, as the property of the state, again free of charge. Iveria Pliusi LLC donated the state a non-residential space of 8,496 sq. meters, located on Gorgasali Street, Tbilisi, and valued at GEL 2,000,000. Snaiperi LLC gifted the state 500 Jericho pistols valued at USD 182,500. Olimpi LLC transferred eight built up land plots valued at GEL 217,000, to the state free of charge. It should be noted that the documents indicate the address of the aforementioned land plots and the buildings as 73 D. Agmashenebeli Avenue (the territory of the Rose Park).

During the examination of the documents, many cases came to light of both individuals and legal persons transferring different types of vehicles to the state free of charge (for example, one individual gifted a BMW car valued at GEL 81,000).  

The Year 2006

Mate Motors company transferred a Toyota Prado valued at GEL 66,497 to the state. The “Tsiskari” charity foundation gave the state computer equipment valued at more than GEL 300,000, while the Malvele Corporation LLC gave the state protective shields valued at GEL 216,960. The state received from the Georgian Sport Society, “Martve”, a land plot (16,994 sq. meters) valued at USD 800,000 and located at 134 Ts. Dadiani Street, Tbilisi, along with the buildings located on it, all free of charge. In the same period, Gogirdis Abano LLC transferred buildings valued at USD 650,000 to the state. In 2006, the Cartu international charity foundation transferred to the state free of charge one of its most valuable pieces of real estate – a building located on 28 Dadiani Street, Tbilisi with a total area of 412 sq. meters, together with its land plot of 566 sq. meters, valued at GEL 1,227,554.

In 2006 the state received property including real estate on the Rike territory. Both individual and legal bodies gifted the state real estate in this area this.  

Seven individuals transferred a land plot located on the territory of Rike in Tbilisi and valued at USD 2,000,000 to the state free of charge. Natvris Khe LLC gave the state a gift of real estate on the same territory valued at USD 650,000.    

The Year 2007

Several conspicuous gifts were made in 2007. Georgian Airways LLC gave the state 75 cars in total, including Toyota Prado, Toyota Camry and Toyota Hilux, which amounted to the value of GEL 3,182,924. In the same year, the Charity - 21st Century association also gifted the state, this time by transferring medical equipment valued at GEL 18,351,165.    

Our research revealed the extraordinary number of cases in 2007 in which individuals transferred real estate, located in downtown Tbilisi, to the state free of charge. In total, the value of the real estate transferred to the state amounts to several million lari (see the charts).  

TI Georgia continues to study the property given by individuals to the state as a gift. At the same time, our organization expresses its thanks to the Ministry of Economy and Sustainable Development of Georgia for providing the requested information in full.

These cases seriously put into question whether the staggering amount of property transferred to the state was always voluntary, and whether it truly expressed the will of the property owners. Accordingly, our organization calls on all affected persons to approach our Center for Legal Assistance, and receive corresponding consultation.   

TI Georgia requested information covering the period of 2004 to March 2013. At present, representatives of the organization are processing the second part of the data and will publish the corresponding results in the very near future.  

 

Property contributed to the state in the form of donation 2004-2005

Property contributed to the state in the form of donation 2006

Property contributed to the state in the form of donation 2007

Author: Transparency International Georgia