Companies working on the government administration building all selected without a tender
The reconstruction of the government administration building cost a total of GEL 7,368,743 from 2013 until June 2015. All of the related services were purchased using the simplified procurement procedure, through negotiations with a single entity. A total of 142 contracts were signed in this way since 2013, with an overall contractual value of GEL 7,823,217. However, the actual reimbursement value was consequently set at GEL 7,368,743 by the LEPL Levan Samkharauli National Forensics Bureau. The government administration did not announce any tenders on procuring reconstruction services worth more than GEL 7 million, even though it would lower the price through competitive bidding.
Anagi Ltd was the recipient of the largest amount of government funds – GEL 2,336,768. Registered in 1995, Anagi Ltd. is fully owned by Nana Aroshidze, whose shares and managed by her husband Zaza Gogotishvili, member of the Supreme Council of the Autonomous Republic of Adjara and majoritarian Member of Parliament (MP) representing the city of Batumi in 2008-2012. In 2011, the company unsuccessfully participated in 6 tenders. In 2012, it won 3 out of 6 tenders it participated in. In 2013-2015, Anagi Ltd. participated in 12 tenders, but was unable to win any of them. The company did, however, manage to sign 4 simplified procurement contracts worth a total of GEL 923,000 with the Tbilisi Development Fund in 2015, as well as a contract worth GEL 4 million with the Municipal Development Fund in 2013. In 2011-2012, the company had signed a total of 37 simplified procurement contracts.
Tbili Sakhli Ltd. received GEL 1,215,029 of state funds. Registered in 2001, Tbili Sakhli Ltd. is owned by three individuals: Malkhaz Kurtanidze (55%), Rudolf Nazarov (40%), and Levan Kurtanidze (5%). In 2011-2016, the company won 47 of the 100 tenders it participated in. In 2012-2016, it signed 142 simplified procurement contracts.
Prizma Ltd. received GEL 1,122,589 for its services. Registered in 1997, Prizma Ltd. is owned by Giorgi Museridze (70%), Giorgi Nakashidze (10%), and Guram Janibegashvili (20%). In 2011-2015, the company won 28 of the 90 tenders it participated in. During the same period it signed 10 simplified procurement contracts with a total value of more than GEL 2 million.
Amiga Ltd. and Grusia Ltd. received GEL 726,424 and GEL 508,136, respectively. Registered in 1999, Amiga Ltd. is fully owned by Besarion Mermanishvili. In 2011-2016, the company won 22 of the 87 tenders it participated in. In 2012-2015, it signed 22 simplified procurement contracts.
Grusia Ltd. was registered in 2009, and is owned by Grigol Zhvania (50%), and Ivane Pochkhidze (50%). In 2013-2015, the company won 4 tenders worth a total of more than GEL 150,000. During the same period, it signed 3 simplified procurement contracts with an overall value of GEL 9,000.
None of the companies mentioned above have been registered recently. Their owners are not among the list of financial donors to the ruling party. Only the current director of Anagi Ltd. Irakli Gogolashvili, its commercial trustee Davit Chantladze, and 100% owner Nana Aroshidze donated GEL 9,000, GEL 2,000, and Gel 60,000, respectively, to a non-commercial legal entity Georgia Is Not For Sale in 2012. However, these individuals have not made any donations ever since.
Out of the GEL 7 million spent on the reconstruction of the government administration building GEL 3,874,093 was spent on repair works, GEL 2,515,084 on construction and engineering works, GEL 189,111 on supply and installation of windows and doors, GEL 870,241 on installation of heating, ventilation and air conditioning systems, and GEL 108,393 was spent on architectural design.
Over the last several months the state electronic procurement system (https://tenders.procurement.gov.ge/) has stopped being updated on the simplified procurement conducted by the government administration. Even though the government administration voluntarily provided us with data on hundreds of its simplified procurement contracts after our request of public information, the electronic procurement system does not bring up any results upon searching by either the procurer (government administration) or any specific contract number (CMR code). For this reason we were unable to obtain additional information on any specific contract. Transparency International Georgia has contacted the State Procurement Agency on several occasions with the request to solve this problem. However, each time the agency has cited technical difficulties. As a result, the state electronic procurement system to this day does not contain any information regarding the simplified procurement conducted by the government administration.