Company that belongs to the business partner of Kutaisi Deputy Mayor wins local tenders
The company that belongs to the business partner of the Deputy Mayor of Kutaisi - Iuza Ugulava, wins the tenders of Kutaisi Municipality. It should be noted that Iuza Ugulava has been leading the tender commission since 2019.
In 2019-2021, Liko-1 Ltd won 5 electronic tenders announced without an auction by Kutaisi City Hall. Zaal Khidasheli, who is the owner of 100% of the shares and the Director of this company, is a business partner of the Deputy Mayor of Kutaisi, Iuza Ugulava. Iuza Ugulava and Zaal Khidasheli own 50-50% of the shares in Iuko Ltd., whose Director is Khidasheli as well.
The total value of the contracts amounted to GEL 294,545. In 2019, the company won a tender worth of GEL 114,220, in 2020 – worth of GEL 16,000, and on March 5, 2021, a contract was signed with the company worth of GEL 164,325. In four out of five tenders, Liko-1 Ltd had no competitor. The company had to make and install benches for Kutaisi squares.
According to the law,[1] Iuza Ugulava was required to declare a conflict of interest[2] (as the owner and Director of the company participating in the tender is his business partner) and to cease participation in the procurement review process[3].
According to Transparency International Georgia, the victory of Liko-1 Ltd in the tenders and the above-stated circumstances raise doubts about the transparency of the process and the impartial approach to the organizations. We call on the Anti-Corruption Agency of the State Security Service to study the legality of the victory of "Liko-1" Ltd in the tenders of Kutaisi City Hall.
[1] Law of Georgia on State Procurement, Article 8
[2] Rules of conducting e-tenders, Article 5 (Order N12 14.06.2017)
[3] Tax Code of Georgia, Article 19