TI Georgia has found that the advertising services for the Government of Georgia's Two Years of Changes report cost approximately GEL 830,000. The Government's Reserve Fund granted money to the State Chancellery twice to cover these expenses – under the 19 September 2014 Government Decree signed by Prime Minister Irakli Gharibashvili – USD 268,000 (468,758 GEL) and under the 28 October 2014 Government Decree – GEL 363,000.

According to information provided by the Government Chancellery upon our request, the Government has signed contracts with over ten companies (see Annex). Procurements were made without competitive tenders via simplified procurement but these contracts cannot be found in the electronic system of the Procurement Agency:

• The Government commissioned Media Port LLC for services (TV placement of video material) worth approximately GEL 380,000. 60% of shares in this company belong to Universal Capital Group LLC, owned by Davit Iakobashvili through an offshore company Redeli Management Limited. Media Port is one of the owners of Outdoor Media House LLC. GEL 2,500 was allocated to this company from the Reserve Fund for airing a video on the screen at the Tbilisi Concert Hall.

• Cor Production LLC, a company registered on 2 October 2012, has produced 8 videos for GEL 204,730.

• The Government has paid GEL 128,600 to Favorite Style LLC for providing brochures. The company's Director Teona Taktakishvili is also the 100% shareholder of Produced in Georgia N1 LLC, a company registered in June 2014. Within the Enterprise Georgia program, the Georgian Entrepreneurship Development Agency has signed a contract with Produced in Georgia N1 LLC, pursuant to which the company will receive solid funds for business development under concessional terms. The Director of the company, which produces various packaging materials, claimed that the project's investment value currently is USD 1,500,000 and the enterprise will be put into operation in February 2015 in Tbilisi.

• USD 35,000 were allocated from the Government's Reserve Fund for broadcasting (from 31 October 2014 until December 31)  videos on Imedi TV.

• The Government has procured from Kviris Palitra LLC services worth GEL 6,320 for disseminating information newsletters. A contract worth GEL 10,643 was signed with Advertline LLC for posting the information video and banner on information sites belonging to the Palitra Media Holding. This company is also owned by Kviris Palitra LLC.

• A contract worth GEL 4,720 (for airing an information video by Radio Utsnobi) was signed with Advision LLC, a company registered on 2 October 2014.

• Natural person Gogita Gogilashvili has received USD 687 for posting an information banner on the website http://gogaggg.com.