Political Donations Quarterly Newsletter N2
From 1 October to 31 December 2022, all political parties in Georgia received a total 742 230 GEL in donations, of which 370 000 GEL (50%) went to the ruling party, followed by Conservative Movement (Alt-Info) with 158,098 GEL, and the third is Lelo for Georgia with 151 337 GEL.
Overview of Georgian Dream donors
During the reporting period, Georgian Dream received a donation of 370,000 GEL. Most donors were large business groups having close ties with the ruling party. The following subchapter reviews in detail their business interests and possible connections with the government.
On 8 and 14 December 2022, Giorgi and Jemal Chkonia and Malkhaz Dumbadze donated 100 000 GEL to Georgian Dream. This group of individuals contributed 555 000 GEL to the ruling party in the previous years. Giorgi Chkonia and Malkhaz Dumbadze have consistently stood out by donating tens of thousands of GEL to Georgian Dream on the same day prior to the election since 2016. In 2012, Chkonia and Dumbadze donated 75 000 GEL to the organization affiliated with the then ruling party – “Georgia is not for sale”.
The group above is connected to each other through common business interests, specifically via Figoil LLC and Gza LLC. Among them, Gza LLC is particularly notable, the 100% owner of the company is Giorgi Chkonia and the director is Malkhaz Dumbadze. This company has won a number of tenders worth more than 222 million GEL and has been awarded simplified procurement contracts worth 9.5 million GEL. Nearly half of the tenders, totaling 102 million GEL, were granted within the last four months. During the same period, other companies of Chkonia, “Chateau Kvirike" and “Batumi Central” received contracts worth 51 112 GEL through simplified procurement.
In addition, Giorgi Chkonia's companies have received financing within the framework of various state programs, including Enterprise Georgia (153 066 GEL), Preferential Agrocredit Project (181 237 GEL), Co-financing of Processing and Storage Enterprises (201 735 GEL).
On November 25, 2022, Joni Jincharadze and Marina Dekhtiarevi donated a total of 40,000 GEL to Georgian Dream (20 000 GEL each). They are related to the companies – HGroup Services and HGroup Development. Dekhtiarevi is the director of HGroup Development and Jincharadze is the director of HGroup Services and owns a 5% share. Both companies are registered at the same address and the largest shareholders are citizens of the Russian Federation (a total of 6 persons, one of whom is a partner of both companies with 40% and 50% shares).
The HGroup Development LLC plans to construct a residential area spanning 16,000 square meters on the hill of Salibauri village near Batumi, overlooking the port. During the donation period, the detailed project development plan was submitted for approval to the Khelvachauri City Council, which was unanimously approved by the City Council on 12 December.
This case requires a thorough investigation by the respective authorities in order to dispel the suspicion that the donated money did not actually belong to Dekhtiarevi and Jincharadze, but to the Russian citizens who are shareholders of the development company, and the purpose of the donation was to obtain a construction permit. Aside from an alleged corruption scheme, there are additional indications of legal violations. Particularly, it is unlawful to make donations through intermediaries or to finance political parties with funds from foreign citizens.
On 4 and 6 October 2022, Givi Lebanidze, Davit Galuashvili and Manana Nadiradze donated 100 000 GEL to Georgian Dream. They are connected to Cartu and Bidzina Ivanisvhili. In particular, Galuashvili is the Deputy Director of the Cartu Bank, Lebanidze is the current Director and Nadiradze is the former Director. Over the course of the past decade, they have made 28 separate donations to the ruling party, totaling 800 000 GEL.
- During the reporting period, the companies related to the donors of the ruling party won tenders worth 102 million GEL, and in the past, they won tenders worth 223 million GEL.
- During the same period, the companies related to the donors of the ruling party received contracts worth 51 000 GEL through simplified procurement, and in the past, they have awarded contracts worth 19 million GEL through simplified procurement.
- During the reporting period, the State Audit Service did not impose sanctions on any party or donor.
 In total, these companies received simplified procurement contracts worth more than 200 000 GEL.
 In 2018, Chateau Kvirike LLC received funding, whose 100% owner is Giorgi Chkonia.
 Jusi LLC received funding, whose 50% shareholder is Giorgi Chkonia.
 In 2020, Jusi LLC received funding.
 See extracts of the companies from the Registry of Entrepreneurs and Non-entrepreneurial (Non-commercial) Legal Entities: https://bit.ly/3ScAoj2; https://bit.ly/3SbciFz
 See Russian citizens are planning to build a residential area on the slope of Salibauri 7.12.2022, https://batumelebi.netgazeti.ge/news/452523/
 See minutes of meeting of the Khelvachauri Municipality Council, December 12,2022,https://bit.ly/3XVlXBu
 People who donated money to Georgian Dream from October 1 to December 31, 2022 and the last 6 months are taken as the interval for tenders and simplified procurements, 1.8.2022 - 31.1.2023.