As a result of operational-search and investigative actions carried out by the Anti-Corruption Agency of the State Security Service of Georgia, and based on a court order, the former Deputy Minister of Defense of Georgia, G.Kh., the former Head of the Procurement Department of the same ministry, V.G., and V.M., a close relative of the then Minister of Defense, have been arrested — this was announced by Emzar Gagnidze, Director of the Anti-Corruption Agency, during a briefing at the State Security Service.

According to him, the case concerns the embezzlement of a large amount of funds belonging to the Ministry of Defense of Georgia in 2023 by a group acting in prior agreement and abusing their official position.

As Gagnidze explained, the investigation has so far revealed that the criminal group developed and implemented a plan through which 1,333,728 GEL was embezzled from the state budget of Georgia.

“Members of the criminal group, some of whom held the positions of chairman and deputy chairman of the procurement commission, conducted the procurement of medical equipment without conducting a real market analysis. At the same time, they ensured that only interrelated companies closely connected to V.M. could participate in the procurement procedures for the medical equipment.

Additionally, the procurement process was organized in such a way that, through fake transactions using certain private companies and forged tax documents issued on the same day, the medical equipment was artificially resold multiple times, which inflated the final purchase price.

As a result, the Ministry of Defense purchased the medical equipment at a price significantly higher than its market value.

The investigation also revealed a key detail — that V.M., a close relative of the then Minister of Defense, promised guaranteed wins to pre-selected companies involved in the procurement process and used his connections with relevant officials as a guarantee of success.

These criminal actions caused a minimum financial loss of 1,333,728 GEL to the state.

The investigation is being conducted under Article 182, Part 2 (a and d subparagraphs) and Part 3 (b subparagraph) of the Criminal Code of Georgia, which provides for a sentence of 7 to 11 years of imprisonment.

In addition, the investigation continues to identify and expose other individuals involved,” Gagnidze stated.