Statement of the Main Prosecutor's Office

2013-02-28 05:00:00

On December 28th, 2012, Samtskhe-Javakheti Regional Prosecutor's Office has launched investigation on the criminal case N084281212802, related to the State budget fund dissipation by Akhaltsikhe district Board staff. Crime is considered by the article 182, II paragraph, subparagraph "d" of the Criminal Code of Georgia. The case is associated with the Rabati Prison construction funds belonging to the State budget and unlawfully spent by the municipality. During the course of investigation, the documents related to the 2011-2012 real estate privatization process have been obtained, located in Akhaltsikhe Municipality. In the process of the investigation, some very interesting factual circumstances have been noted, which is shown below. 


Upon studying the above-mentioned documents, it was revealed that  in 2011-2012, Akhaltsikhe District Municipality made a decision on allocation of various property objects for privatization, to be more precise: In the village of Atskuri (Akhaltsikhe district), 20000sq.m. of land, with amortized former breeding complex on it, was apportioned and audited. The unit cost was assessed as 14 400 GEL through the audit, and by the decision of the City Council, the starting price was increased up to 63 000 GEL. LLC "Georgian Invest" was registered as a participant of the auction. It was represented by Mirdat Kamadadze and its Director, Juansher Mashia, who was in custody at N8 Penitentiary Facility at that time. As a final point, the land and real estate of the village of Atskuri was purchased for
4 949 500 GEL by "Georgian Investment", while starting price was 63000 GEL, and there was no other contenders for the trade.

2. The Cultural Center located in the village of Tatani, Akhaltsikhe district, a total area of which is 168sq.m., was estimated at 11 000 GEL by the audit. Interested entity registered for the auction was Ephraim Guri (hereinafter referred to as “Purchaser”) and the trustee was Giorgi Chkheidze. This was the only person participating in the auction, who purchased the above-mentioned building for 409 200 GEL.
 
3.The Cultural Center,  located in  the village of Tsira, Akhaltsikhe district, with  the total area of 753 sq.m.,  was estimated at 12 000 GEL through the audit. Interested entity for the auction was registered as "TBC Bank”, representative of which was Giorgi Jandieri."TBC Bank” was the only participant in the auction, buying the building for 500 000 GEL. 
 
4.  The Club Library, located in Akhaltsikhe district, the village of Chvinta, with the total area of 121 sq.m., was estimated at 8 000 GEL through the audit. The only interested entity registered for the auction was LLC "Bemoni" (the Director - Davit Miminoshvili), representative of which was Mamuka Piranishvili. "Bemoni" was single participant of the auction, acquiring the abovementioned building for 1 900 000 GEL.
 
5.  The Club Library, located in Akhaltsikhe district, the village of Tskaltbila, with the total area of 391 sq.m., was estimated at 13 000 GEL by the audit. The only interested applicant registered for the auction was an individual - Jemal Gvarliani. He was a single participant of the auction, purchasing the abovementioned building for 100 000 GEL. J.Gvarliani later donated this estate to the State.
 
6.  The Club Library, located in Akhaltsikhe district, the village of Tsinubani, with the total area of 257sq.m., was estimated at 11 000 GEL through the audit. The only interested applicant registered for the auction was LLC "Micro Finance Organization Intel Express Georgia", representative of which was George Surguladze. Only one organization took part in the auction, the object of which was acquired for 570 000 GEL.
 
7. The Club Library, located in Akhaltsikhe district, the village of Julgha, with the total area of  409sq.m., was estimated at 13 000 GEL by the audit. The only interested applicant registered for the auction was "Kotsitsashvili and Company", representative of which was Vakhtang Kotsitsashvili. It was the only participating organization who was registered for the auction. The building was acquired for 200 000 GEL, the purchaser has not received a Certificate of Ownership and therefore hasn’t listed it in the Public Registry.

8. The Cultural Center located in Akhaltsikhe district, the village of Orali, a total area of which is 264 sq.m., was estimated at 11 000 GEL by the audit. Interested entity registered for the auction was LLC "Construction Company ODI", represented by Mikheil Chkhitunidze. It was the only organization taking part in the auction, purchasing the building for 100 000 GEL, but the organization has not received a Certificate of Ownership and therefore hasn’t listed it in the Public Registry. 
 
9. The Club House located in Akhaltsikhe district, the village of Kheoti, a total area of which is 264sq.m., was estimated at 5 000 GEL through the audit. Interested entity registered for the auction was LLC "Insta Georgia", a trustee representative of which was Giorgi Meparishvili. It was the only organization taking part in the auction, purchasing the building for 500 000 GEL. The Director of LLC "Insta Georgia" – Levan Simonishvili was in the State custody at that time. Later, he donated the property back to the State. 
 
10. The Public Library and Medical Checkpoint located in Akhaltsikhe district, the village of Kheoti, with a total area of 186 sq.m., was estimated at 4 000 GEL by the audit. Interested entity registered for the auction was Davit Andronikashvili. He was single participant of the auction, acquiring the abovementioned building for 200 000 GEL, but he has not received a Certificate of Ownership and that’s why hasn’t listed it in the Public Registry.
 
11. The Club Library located in Akhaltsikhe district, the village of Ani, with a total area of 185 sq. m., was estimated at 10 000 GEL by the audit. The interested entity registered for the auction was LLC "Potikalak Service" represented by Akaki Shurghaia. It was the only organization taking part in the auction, purchasing the building for 200 000 GEL, but the organization has not registered the Certificate of Ownership in the Public Registry.
 For the realization of the entire aforesaid real estate objects, there was paid a total sum of     9 632 000 GEL, starting value of which amounted to 161 000 GEL.
 
Investigation materials reveal that during the process of purchase, 2 of the proprietors were prisoners (LLC "Georgian Investment", the Director – Juansher Mashia and the Director of LLC "Insta Georgia" – Levan Simonishvili).

2 of the proprietors donated the property as a gift to the State (LLC "Insta Georgia", the Director – Levan Simonishvili and the citizen Jemal Gvarliani).
As of February 22nd, 2013, representative of LLC "Georgian Investment" – Mirdat Kamadadze, Davit Andronikashvili and a representative of  LLC "Insta Georgia" – Giorgi Meparishvili were summoned as witnesses.
Thus, there are obvious factual evidences of business terror. Investigation on this matter is continuing, witnesses are being questioned at this time and in the nearest future the incident will be given legal evaluation.