Transparency International Georgia presents an overview of those road companies that have received large public procurement contracts in the Samegrelo-Zemo Svaneti Region. These companies are mainly engaged in construction and/or road improvement work. Some of them are linked to current or former high-ranking government officials. In addition, they make political donations.

• The companies listed in this overview are mainly based in the Samegrelo-Zemo Svaneti Region. Since 2013 to date, all these companies have received public procurement contracts totaling GEL 676,623,523;
• Sagzao LLC, which has been participating in public procurements since 2015, has received GEL 76,813,353 to date. The current owner of the company, Kakhaber Ubilava, is a former employee of the Regional Projects Coordination Department of the Administration of the State Representative in the Samegrelo-Zemo Svaneti Region.
• Kakhaber Ubilava’s brother-in-law, Davit Sichinava, has also won tenders announced for road works. Before Ubilava joined the company, Sichinava owned a 100% stake in Sagzao LLC and participated in public procurement tenders as an individual entrepreneur between 2013 and 2022. During this period, he has won 54 tenders worth GEL 57,188,154. Davit Sichinava has also made donations in favor of the Georgian Dream;
• Akaki Kvitsiani, who owns 25% of the shares in Lideri+ LLC, is the brother of Baia Kvitsiani, a current Member of Parliament from the Georgian Dream, and the son of former MP Kandid Kvitsiani. Since 2015, the company has been awarded public procurement contracts totaling GEL 37,232,754; 
• Tenders announced by Senaki Mayor’s Office for road construction were mostly won by the joint-stock company Arkeopolis, which was founded by former MP Demur Gadelia. However, Demur Gadelia’s nephew is Senaki Mayor Vakhtang Gadelia, who was a member of the supervisory board of the joint-stock company between 2009 and 2013. Another company linked to this family is Indiko LLC, 100% of whose shares are owned by Ioseb Gadelia, a cousin of Senaki Mayor Vakhtang Gadelia;
• Road Plus LLC and Building Group 17 LLC are companies linked to Zaza Antia, a classmate and friend of Zugdidi Mayor Mamuka Tsotseria and Deputy State Representative in the Samegrelo-Zemo Svaneti Region Davit Kukhaleishvili. From 2018 to date, these companies have won tenders totaling GEL 28,516,914. Of this amount, GEL 15,314,019 worth of procurements were awarded by the Zugdidi Mayor’s Office;
• The companies and/or related individuals considered in this study have also made political donations to the Georgian Dream-Democratic Georgia party: Davit Sichinava linked to Sagzao LLC donated [1] GEL 32,000 in 2017-2021; Sharagzamsheni Pirevli LLC donated [2] a total of GEL 25,000 in 2017 and 2021; Lideri+ LLC donated [3] GEL 5,000 in 2021; and Tavadi 1 LLV donated [4] GEL 2,500 in 2021.

Sagzao LLC and the Individual Entrepreneur Davit Kacharava

Sagzao LLC has been participating in public procurement tenders since 2015 and has won contracts totaling GEL 76,813,353 in 63 tenders. Out of these 63 tenders won, Sagzao LLC was the only bidder in 14 tenders and won another 14 tenders as a result of the disqualification of other bidders.

Sagzao LLC was registered in 2014. It was registered as “Anastasia 2014 [5]” but was renamed Sagzao [6] LLC in 2017. Its first director and 100% owner, Gela Bigvava, resigned as the director in August 2017 and transferred [7] his share to Davit Sichinava free of charge. In August 2018, Davit Skhulukhia became [8] the director and 100% owner, who then, in September 2020, transferred [9] his share to Davit Sichinava’s brother-in-law, Kakhaber Ubilava, free of charge. In September 2021, there was yet another change [10] when Davit Sichinava’s niece, Nana Shamatava, took over as the director and 100% owner of the company. In January 2023, Kakhaber Ubilava regained the 100% stake [11] in Sagzao LLC, while Nana Shamatava continued to hold the position of director.

It is worth noting that for years, Kakhaber Ubilava held the position of chief specialist in the Regional Projects Coordination Department in the Administration of the State Representative in the Samegrelo-Zemo Svaneti Region. Davit Sichinava donated [1] to the Georgian Dream-Democratic Georgia party a total of GEL 32,000 in 2017-2021.

Sagzao LLC mainly operates in the Samegrelo-Zemo Svaneti Region but has also won tenders in the Imereti and Guria regions.

The table below shows the data on the tenders won by the company by year: 

The former owner and director of Sagzao LLC, Davit Sichinava, also participated in tenders as an individual entrepreneur from 2013 to 2022. During this period, he won 54 tenders with a total value of GEL 57,188,154 and also received GEL 82,761 for two simplified procurements.

Of the 54 tenders won by the individual entrepreneur “Davit Sichinava,” 12 were announced by Khoni Municipality and 15 were announced by the Roads Department. In 2019, Davit Sichinava received the largest contract, worth GEL 20 million, from the Roads Department and was performing road repair works in the Samegrelo-Zemo Svaneti Region for three years.

Interestingly, in 2016, Davit Sichinava won a tender [12] (a/n SPA160009814) worth GEL 303,970 announced by Akhaltsikhe Municipality. The contract with Akhaltsikhe Municipality was signed by the authorized person, Davit Chachanidze, whose company, Renesansi 77 [13] LLC, developed the design and estimate documentation of the tender won by Sichinava.

It should be noted that Davit Chachanidze appeared in a report published [14] by TI Georgia in 2021: in February 2018, he was convicted [15] for misappropriation and embezzlement of GEL 10,000 from the local budget of Akhaltsikhe. The case concerned a GEL 86,500 tender announced by Akhaltsikhe municipality, which Chachanidze’s company, New Project LLC, won [16] in September 2015. In August 2021, Chachanidze donated [17] GEL 5,000 to the Georgian Dream party.

Lideri+ LLC

Lideri+ [18] LLC was registered in 2014. Since 2019, the owner [19] of a 25% stake in this company has been Akaki Kvitsiani, who is the brother of Baia Kvitsiani [20], a current MP from the Georgian Dream party, and the son of former MP Kandid Kvitsiani [21]. The director of the company is Teimuraz Tsomaia.

Lideri+ LLC has been participating in public tenders since 2015 and has received contracts worth GEL 37,232,754 as a result of 25 tenders and 10 simplified procurements. Lideri+ LLC took part in 45 tenders and won 24 of them. In 19 of them, it was the only bidder, and in three tenders, it won due to the disqualification of other bidders.

Lideri+ LLC services are procured mainly by Mestia Municipality (12 tenders and five simplified procurements) and the Roads Department (five tenders and three simplified procurements).

In 2021, Lideri+ LLC donated [3] GEL 5,000 to the Georgian Dream-Democratic Georgia party.

The data on the tenders and simplified procurements received by the company is presented in the table below:

Prime Betoni LLC

Prime Betoni LLC was registered in 2008. Currently, the owners [22] of the company are Lasha Chipashvili (12%), Prime Management Company LLC (58.67%), and Peani LLC (29.33%). The founder and director of the company is Aleksandre Sokolovski. The owners of stakes in the company changed. For example, 7% of Prime Betoni LLC was owned [23] by Zurab Davlianidze, who is a shareholder and director of several companies, including Prime Hydro [24] LLC, and a business partner of Ruslan Abashidze, the Chairperson of the Government of Abkhazia.

The supervisory board of Prime Betoni LLC consists of three members: the chairperson, Giorgi Akhvleadiani, and two members, Lasha Chipashvili and Natia Janelidze. It should be noted that Natia Janelidze is the wife of Davit Chkhetiani, the Deputy [25] Commander of the Western Command of Forces of the Ministry of Defense of Georgia. 

Prime Betoni LLC has been participating in public procurement tenders since 2012. Various procuring entities have paid a total of GEL 55,252,138 to the company through 21 tenders and eight simplified procurements; however, the value of the contracts is much higher, as six of the 21 tenders won by Prime Betoni are ongoing procurements and the company has not yet received the full amount. Taking this into account, the total value of the procurements awarded to Prime Betoni LLC amounts to GEL 86,271,309.

It should be noted that Prime Betoni LLC received [26] assistance from the Government of Georgia; however, the nature of the assistance is not known.

Road Plus LLC and Building Group 17 LLC

Road Plus [27] LLC and Building Group 17 [28] LLC are companies linked to Zaza Antia, a classmate and friend of Zugdidi Mayor Mamuka Tsotseria and Deputy State Representative in the Samegrelo-Zemo Svaneti Region Davit Kukhaleishvili. Since 2018 to date, these companies have won tenders totaling GEL 28,516,914. Of this amount, GEL 15,314,019 worth of procurements were awarded by the Zugdidi Mayor’s Office. Last year, TI Georgia wrote [29] about corruption risks in these procurements.

Road Plus LLC was registered in 2020. Zaza Antia is the 100% owner and director of the company. Since 2021 to date, the company has participated in 58 tenders and won 23 of them. The total value of the contracts awarded to the company has amounted to GEL 16,451,079, of which GEL 6,920,049 was awarded by the Zugdidi Mayor’s Office. Out of the 23 tenders won, the company was the only participant in 13 tenders, and four tenders were won as a result of the disqualification of other participants. 

The 100% owner and director of Building Group 17 [28] LLC, registered in 2017, is Zaza Antia’s mother, Aza Chikhladze, but tender documentation has been signed by Zaza Antia as an authorized person. Between 2018 and 2021, Building Group 17 LLC participated in 74 tenders, out of which it won 32 tenders and received contracts with a total value of GEL 12,005,725, including GEL 8,333,869 worth of contracts from the Zugdidi Mayor’s Office. Out of 32 tenders won, the company had no competitors in 20 and won six tenders as a result of the disqualification of other bidders.

Sharagzamsheni Pirveli LLC

Sharagzamsheni Pirveli LLC is a company [30] registered in 2005. The 100% owner of the company is Givi Shengelia, and the director is Gulad Beraia.

Since 2013 to date, Sharagzamsheni Pirveli LLC has received contracts worth GEL 85,602,879, of which GEL 84,629,946 through tenders won and GEL 972,933 through 23 simplified procurements.

In 2017 and 2021, the company donated [2] a total of GEL 25,000 to the Georgian Dream-Democratic Georgia party.

Tavadi 1 LLC

Tavadi 1 LLC was registered [31] in 2007, and Elguja Gurieli is its 100% owner and director. Since 2013 to date, LLC has been awarded GEL 31,248,838 worth of public procurement contracts, of which GEL 28,616,380 worth of contracts were awarded through 59 tenders won and GEL 2,632,458 through 97 simplified procurements.

In 2021, Tavadi 1 LLC donated [4] GEL 2,500 to the Georgian Dream party.

JSC Archeopolisi and Indiko LLC

JSC Archeopolisi was founded [32] in 1996 by Demur Gadelia, a former Member of the Georgian Parliament [33]. Demur Gadelia’s nephew, Vakhtang Gadelia, is the current Mayor of Senaki. Vakhtang Gadelia [34] was a member of the supervisory board of the joint stock company between 2009 and 2013. The First Deputy Mayor of Senaki, Nana Zarandia, also previously worked in Archeopolisi. Nana Zarandia was the Head of Law Service at Senaki Mayor’s Office from 2014 to 2018, when she became the Head of Administration. On February 8, 2019, Zrandia left the Mayor’s Office and was appointed the director of Archeopolisi, which she held until June 12, 2020, after which she returned to the Mayor’s Office and is now the First Deputy Mayor.

Since 2013 to date, JSC Archeopolisi has received public procurements amounting to GEL 190,566,127. Of this amount, GEL 187,545,498 worth of contracts were awarded through 132 tenders won and GEL 2,591,961 through six simplified procurements.

Indiko LLC is also a business belonging to the Gadelias family. The 100% owner of the company [35] is Ioseb Gadelia, a cousin of Senaki Mayor Vakhtang Gadelia. Since 2013 to date, Indiko LLC has received public procurements worth GEL 114,119,606. During this period, the company has won 82 tenders with a total value of GEL 111,456,160.

In addition to the tenders in Samegrelo, Indiko LLC has won tenders in Imereti as well. In 2022, TI Georgia wrote [36] about corruption risks in these procurements.

According to Transparency International Georgia, the participation of some of the companies discussed in this study in public procurement raises questions about the legitimacy of the process. We call on the Anti-Corruption Agency of the State Security Service to examine each procurement and establish whether it contains elements of corruption.