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State money siphoned off in construction of new parliament

by | Oct 5, 2013
parliament_pillars

The pillars of the new parliament in Kutaisi. (Pirveli.)

TBILISI, DFWatch–The investigative service of the Finance Ministry has charged the director of the company that built the new parliament in Kutaisi with appropriation of a state money.

According to the Investigative Service information, March 17, 2010, Meno International signed an agreement with the state about implementing the construction and refurbishment of the parliament building in Kutaisi, Georgia’s second largest city. 281 000 000 lari (USD 168 900 000) was transferred by the state to the company.

The company’s director Giorgi Kurtskhalia is charged with artificially increasing the amount of expenses as he subcontracted the job to G.S.K Ltd, a subsidiary of his own company, and increasing the price of a single one meter pillar from 690 lari to 1200 lari (USD 414 to USD 721), investigators claim.

22 351 pillars were needed, for which Meno Internatioanl Ltd received 34 million lari (USD 20 million) from the state to build. But in fact, the real expenses are estimated to USD 13 million.

Kurtskhalia by this account appropriated 11 612 469 lari from the state.

March 21, 2007, an agreement was signed between Meno International Ltd and the Defense Ministry about state purchasing to construct a 18-floor house on Abashvili Street In Tbilisi. The company received USD 33.9 million from the state for this purpose.

Kurtskhalia signed an agreement with Magi Stil Ltd, also a subsidiary of Meno International, in order to artificially increase the stated expenses. In this case, Kurtskhalia appropriated 4 944 479 lari, according to investigators.

Kurtskhalia may face from 6 to 9 years in jail.



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