Business Connections, Incompatible Activities and Undeclared Companies of Parliament Members - საერთაშორისო გამჭვირვალობა - საქართველო
GEO

Business Connections, Incompatible Activities and Undeclared Companies of Parliament Members

10 December, 2021

A new report by Transparency International Georgia indicates that undeclared business assets of Parliament members and incompatible activities with their status is a problematic issue in the Parliament of Georgia of the 10Th Convocation.

We do not have the capacity to establish whether the undeclared companies are actually engaged in entrepreneurial activities and The Civil Service Bureau should be interested in this issue. As for the conflict of interests, this needs to be examined by the Parliamentary Committee of Procedural Issues and Rules.

The information about MPs’ asset declarations and their shares in companies is given in the report as 16 September 2021.

Based on the study of official data:

Business interests of MPs

  • Out of 150 MPs, 62 have business connections.
  • 10 MPs have incompletely indicated their share ownership in the asset declarations. These MPs are: Davit Kacharava, Nona Mamulashvili, Levan Mgaloblishvili, Tsezar Chocheli, Tariel Nakaidze, Nino Tsilosani, Dilar Khabuliani, Iago Khvichia, Zaal Dugladze, Pridon Injia.
  • 13 MPs incompletely declared their indirect entrepreneurial activities(related/subsidiary).

The following MPs hold business assets in the largest number of companies (10 and more):

1.      Badri Japaridze (Lelo- Partnership for Georgia faction)- 32 companies

2.      Mamuka Khazaradze (Lelo- Partnership for Georgia faction)- 30 companies

3.     Vasil Chigogidze (Georgian Dream faction) – 22 companies;

4.    Avtandil Enukidze (European Socialists political group) – 20 companies;

5.    Pridon Injia (European Socialists political group) – 20 companies;

6.    Kakhaber Okriashvili (United National Movement faction – Power in Unity united opposition) – 12 companies;

7.    Dilar Khabuliani (United National Movement faction – Power in Unity united opposition) – 10 companies)

Activities incompatible with the status of a Member of Parliament

As for entrepreneurial activity, a Member of Parliament has no right to be directly engaged in a repeated activity of managing material and financial assets for profit. Also, an MP is not allowed to directly exercise the powers of a permanent head or a member of a supervisory, control, revision and/or consultative body of an entrepreneurial entity.

In 12 cases, the deputies carried on exercising representative authority of entrepreneurial entities simultaneously with their parliamentary activities; These MPs are: Giorgi Godabrelidze, Abdula Ismailov, Manuchar Kvirkvelia, Nona Mamulashvili, Mamuka Mdinaradze, Rostom Chkheidze, Devi Chankotadze, Levan Khabeishvili, Iago Khvichia, Dimitri Khundadze, Tamar Charkviani, Khatuna Kvitsiani.

Income from companies

In most cases, 0 Gel is indicated as income received from entrepreneurial activities. Only 22 from 62 MPs indicated their income from entrepreneurial activities.

According to the submitted declarations, the following MPs indicated the highest annual income from entrepreneurial activities:

  • Kakhaber Okriashvili (United National Movement faction – Power in Unity united opposition) – GEL 11,268,533.54;
  • Pridon Injia (European Socialists political group) – GEL 1,528,556;
  • Anton Obolashvili (Georgian Dream faction) – GEL 1,418,917.5;
  • Elguja Gotsiridze (Georgian Dream faction) – GEL 1,263,590.42;

 The report about undeclared entrepreneurial activities of Members of Parliament and their business connections is based on information collected from official sources (asset declarations of officials and the website of the National Agency of Public Registry, information requested from the Parliament).

 

Our Recommendations:

  • The Committee of Procedural Issues and Rules of The Parliament of Georgia should study the cases indicated in the report and respond to them within the scope of their authority;
  • Based on the provided information, the Civil Service Bureau should start monitoring asset declarations of MPs mentioned in the report.
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