TBILISI, October 30 – Georgia’s former deputy minister for regional development and infrastructure, Koba Gabunia, has been arrested on charges of abuse of power and corruption.
The arrest was carried out jointly by Georgia’s Investigation Service of the Ministry of Finance and the State Security Service, the ministry announced Thursday.
Gabunia, who oversaw the country’s Municipal Development Fund during his time in office, is accused of authorizing a series of unjustified advance payments to a private company, Lagi Capital, which was contracted to renovate kindergartens across the country.
According to investigators, from July 2023 to May 2024, Lagi Capital received more than 11 million lari in advance funding for the rehabilitation of 30 kindergartens. Most of that money, about 9.3 million lari, was allegedly embezzled, while roughly 1.2 million lari was laundered through other channels. Investigators say the company’s funding requests were “unsubstantiated and only partially supported,” yet the ministry approved further advances at Gabunia’s direction.
Searches were conducted at 20 different locations, including Gabunia’s home and the residence of former minister Irakli Karseladze, as well as several other individuals connected to the case.
The investigation also links the latest arrest to earlier detentions of several Municipal Development Fund officials, including former executive director Davit Tabidze, a program manager, and a project manager. Those officials have reportedly cooperated fully with investigators and were released on bail.
The scandal has widened over recent months as financial investigators have traced large portions of the diverted funds back to Lagi Capital’s leadership. The company’s top managers are already in custody, accused of fraud and money laundering.
Gabunia now faces charges under several articles of Georgia’s Criminal Code, including abuse of power, fraud, money laundering, and falsification of documents. If convicted, he could face between 9 and 12 years in prison.
In a televised comment before his detention, opposition politician Roman Gotsiridze said the investigation reflects a deeper problem with government oversight and favoritism in public tenders, BMG reported. He argued that corruption scandals have “become systemic” within large infrastructure projects funded by the state.
Gotsiridze said that while past arrests have focused on mid-level officials or contractors, “the public wants to see responsibility at the political level.” He added that corruption networks “do not appear overnight” but grow within a system that tolerates such practices until they become public scandals.
Authorities, however, say the ongoing investigation shows that law enforcement is tackling corruption at all levels. In its statement, the Investigation Service said it continues to work closely with the Prosecutor General’s Office and the State Security Service to ensure that “those involved in corruption offenses are exposed, held accountable, and that future offenses are prevented.”
The Municipal Development Fund is a key government body that channels international aid and state funds into infrastructure and social projects across Georgia’s regions. Its role in managing large public works, including school and kindergarten rehabilitation, has made it a frequent subject of public scrutiny.
