Restaurant and hotel service costs incurred by state agencies over the years 2013 and 2014 exceed GEL 20 million - საერთაშორისო გამჭვირვალობა - საქართველო
GEO

Restaurant and hotel service costs incurred by state agencies over the years 2013 and 2014 exceed GEL 20 million

04 March, 2015

 

While the country faces economic problems, government representatives announced about "Tightening their belts" last week, meaning specifically that they are going to reduce the administrative costs by 12%. One of the areas in which the government can make considerable savings is restaurant and hotel services. Transparency International Georgia has studied the information concerning the hotel and restaurant service procurements made by different state agencies in 2013 and 2014, a brief summary of which with pertinent information we are supplying below.

In 2013-2014, different state-funded agencies spent a total of up to GEL 10, 6 million on hotel services and up to GEL 9, 7 million on restaurant services using simplified procurement.

The largest amount of spending on restaurant services (overall through tenders and simplified procurement) for the past two years comes on The National Center for Teachers’ Professional Development (GEL 2 million), the second to come in terms of the relevant expenses is Tbilisi City Hall (GEL 1, 1 million), and the third is The National Tourism Administration (GEL 520,000).

Over the same period, the greatest amount of restaurant service expenses (overall through tenders and simplified procurement) were incurred by the Ministry of Internal Affairs (GEL 750,000). The Chancellery of the Government of Georgia comes second in restaurant related expenses (GEL 450,000), and Ivane Javakhishvili Tbilisi State University is the third (350,000 GEL) .

Importantly, state agencies opted for the simplified procurement procedure when procuring restaurant and hotel services in 2013 and 2014. Thus, the costs of the restaurant services, for instance, procured through simplified procurement procedure (GEL 8.4 million) were 6 times higher than the costs for the same services procured through tenders (GEL 1.4 million), whereas in case of hotel services, direct procurement (GEL 6.1 million) amounted to almost one and a half times (1.3 times) greater spending compared to the spending made through tenders (4.6 million).

  1. The hotel and restaurant services procured through tenders

The amount paid by the government agencies for hotel services only through tenders totaled in 2013 and 2014 approximately GEL 4.6 million, while the restaurant services procured through tenders in the same period cost them GEL 1.4 million.

1.1. Hotel services procured through tenders

The expenses of the government agencies for procuring hotel services through competitive bidding were distributed almost equally between 2013 (GEL 2.4 million) and 2014 (GEL 2.2 million).

The National Center for Teachers’ Professional Development accounts for the greatest share of the hotel expenses throughout the two years, with GEL 870,149 and GEL 1.1 million spent in 2013 and 2014 respectively. Two of the largest procurements made by this agency (GEL 142, 229[1] and GEL 115, 785[2]) were designed for teaching Georgian and English ​​and social sciences to ethnic minorities.

Tbilisi City Hall is second biggest procurer whose average spending on hotel services over the past two years made up GEL 540, 000. Top three procurers also include “Guria”, a football team from Lanchkhuti distinct that spent GEL 208, 982 in 2014 and GEL 23, 000 on hotel services.

1.2. Restaurant services procured through tenders

The state-funded agencies spent approximately GEL 1.4 million on procuring restaurant services through tenders in 2013 and 2014. The expenses were distributed rather evenly in 2013 (GEL 761, 967) and 2014 (GEL 593, 035).

Poti City Hall accounts for the largest hotel expenses over the two years and spent for this purpose GEL 174, 597 and GEL 171, 132 in 2013 and 2014 respectively. The above sums were fully spent on providing free dinner to around 200 people in the soup house daily. Tenders for similar programs were announced by dozens of other municipalities as well. Second in terms of procurement costs comes the Police Academy which paid GEL 139, 190 for restaurant services in 2013. 

  1. Hotel and restaurant services procured through simplified procurement

The government agencies procured hotel services worth approximately GEL 6.1 million through simplified procurement and paid approximately GEL 8.4 million for restaurant services in 2013 and 2014.

2.1. Hotel services procured through simplified procurement

The amount spent by the state-funded agencies on procuring hotel services through simplified procurement made up GEL 2.7 million in 2013 and GEL 3.4 million in 2014.

The largest procurer of hotel services throughout the two years was The National Tourism Administration (GEL 517,475), followed by Ivane Javakhishvili Tbilisi State University (GEL  413,118).

2.2. Restaurant services procured through simplified procurement

Restaurant costs made by the government agencies through simplified procurement amounted to GEL 4.1 million in 2013 and GEL 4.3 million in 2014.

The biggest procurer of restraint services over the two years was the Ministry of Internal Affairs (GEL 732,208); the second in the list is the Chancellery of the Government of Georgia (GEL 438,986).

Importantly, the Ministry of Internal Affairs accounted for the restaurant service costs totaling GEL 694, 999 in 2013, whereas in 2014, the restaurant service costs by the same agency made up only GEL 40,000.


[1]:The hotel stay, catering, and meetings costs for  the Georgian language supporting teachers: http://mes.gov.ge/content.php?id=2384&lang=geo

[2] The hotel stay, catering, and meetings costs for the  native English-speaking volunteer teachers: http://www.tlg.gov.ge/content.php?id=95&lang=geo

Author: George Topouria