GEO

Business connections of MPs, Incompatible Activities and Undeclared Assets

25 September, 2017

The new report by Transparency International Georgia shows that undeclared business assets and incompatible activities of MPs remains a  problem in the 9th convocation of the Parliament of Georgia.

Based on official data, the report has found the following:

Business interests of MPs

  • 51 MPs have business connections and hold various company shares
  • 16 MPs have undeclared business assets (14 MPs from the Majority: Levan Bezhanidze, Bidzina Gegidze, Levan Kobiashvili, Guram Macharashvili, Koba Narchemashvili, Gia Zhorzholiani, Shota Khabareli, Dimitri Khundadze, Edisher Toloraia, Dimitri Samkharadze,  Gedevan Popkhadze, Erekle Tripolski, Mariam Jashi, Sophio Jashi, and two MPs from the Georgian Patriots Faction: Irma Inashvili and Giorgi Lomia)
  • MPs with the largest business ownership portfolio are:

Ivliane Tsulaia "The Georgian Dream" (31 companies),

Nino Tsilosani "The Georgian Dream"  (13 companies),

Kakhaber Okriashvili  "The Georgian Dream for Development of Regions" (13 companies)

Activities incompatible with the status of MPs


In terms of entrepreneurial activities, MPs are not allowed to: Engage in more than a one-time activity involving the management of material and financial assets for the purpose of making profit; and hold the position of a head of a commercial entity and perform supervisory, control, revision or consulting activities within it.

  1. 9 MPs are registered as directors: Edisher Toloraia ("The Georgian Dream") is the director of LLC “Kobra +”; Giorgi Lomia („Georgian Patriots”) is the director of LLC “Club New York”; Dimitri Samkharadze ("The Georgian Dream") is the director of LLC “Vatican Georgia”; Mamuka Chikovani (“European Georgia - Regions”) is the director of LLC “Rustavi Club”; Ioseb Makrakhidze ("The Georgian Dream") is the director of LLC “Imedi”; Mamuka Mdinaradze ("The Georgian Dream") is the director of GP “Mamuka Mdinaradze and Tbilisi Legal Center”, and GP “Company of Mamuka Mdinaradze, Giorgi Gelashvili and Shalva Mshvildadze”; Mariam Jashi ("The Georgian Dream") is the director1 of LLC “Healthcare Development Institute”; Davit Chichinadze ("The Georgian Dream") is the director of LLC “Mza Sakhli”; Dimitri Khundadze ("The Georgian Dream")

Business interests of MPs’ family members

  • There are 25 cases of business connection of MPs’ family members
  • business assets were not declared at all in 7 cases: (The MPs family members are the following: Mirian Tsiklauri (Georgian Dream), Dimitri Mkheidze (Georgian Dream), Irakli Khakhubia (Georgian Dream), Fati Khalvashi (Georgian Dream), Giorgi Kakhiani (Georgian Dream), Nato Chkeidze (Georgian Patriots), Irma Nadirashvili (European Georgian)

Untimely declared real property

  • 16 MPs have not fully declared their real property
  • The family members of 4 MPs have not fully disclosed their real property (Revaz Arveladze (Georgian Dream), Dimitry Mkheidze (Georgian Dream – Greens), Nino Tsilosani (Georgian Dream), Rati Ionatamishvili (Georgian Dream).

Participation in public procurement

In the period between the authorization of the Ninth Parliament of Georgia (November 18, 2016) and August 2017, companies associated with three MPs have taken part in public procurement:

  1. Kakhaber Okriashvili (Majoritarian MP, Georgian Dream) – Ltd. PSP Pharma, PSP Insurance (highest contract won in the amount of 16,584,494.85 GEL)
  2. Ioseb Makrakhidze (Majoritarian MP, Georgian Dream) – Ltd. Ibolia (highest contract won in the amount of 2,250,440.00 GEL)
  3. Gocha Enukidze (Majoritarian MP, Georgian Dream) – Ltd. IberCompany (highest contract won in the amount of 12,022.50 GEL)

Income Received by MPs from Entrepreneurial Activities

The following MPs received the highest income from entrepreneurial activities in the one-year period of the filled-in declaration:

  • Kakhaber Okriashvili (Georgian Dream – For the Development of the Regions) -17,429,052.00 GEL
  • Grigol Mikeladze (Georgian Dream) - 1,185,000.00 GEL
  • Elguja Gotsiridze (Georgian Dream – Industrialists) -  1,011,839.00 GEL

The report is based on asset declarations filed by MPs and the business and real estate registry databases available on the Public Registry website, as well as information received from the Parliament.

According to Georgian legislation, the incorrect filing of asset declarations by public officials results in a fine of 1000 GEL. In case of deliberately providing wrong information, the civil service bureau is obliged to send the declaration and supporting documents to the respective law-enforcing agency. According to the Criminal Code of Georgia, the deliberate inclusion of wrong information in public asset declarations results in a fine or 120-200 hours of community service, with deprivation of the right to hold an official position or to carry out a particular activity for up to three years. Moreover, if an MP is involved in entrepreneurial activities, the Parliament is obliged to discuss the pre-term termination of the MP status in question.

Recommendations:

  • The Procedural Issues and Rules Committee of the Parliament of Georgia to examine cases described in this document and respond according to all relevant legal requirements.
  • Civil Service Bureau to launch monitoring of asset declarations of individuals identified in this document.

1 Mariam Jashi filed an application with the Public Registry on the termination of her status as a director on December 31, 2012; however, her request was denied, so she remains the director.

 

parliament