Think the Georgian government is hard up for cash? If anti-corruption watchdog Transparency International is correct, you might want to think again.
In a recent statement, the group claimed that officials failed to spend a whopping 150 million lari (roughly $68 million) budgeted for 2014 expenditures. *
It alleged that the finance ministry had attempted to conceal the scale of the underspending by listing 80 million lari (about $36 million) as a sub-item in the government’s Treasury Single Account (defined by the IMF as “a unified structure of government bank accounts”) to make sure it was not reflected in the country’s annual financial statement.
As a result, the group continued, inaccurate budget-deficit calculations were shown to the public, potential investors and international organizations.
Critics claim that the underspending, the second year in a row, shows that government departments did not keep projects on schedule or even get started with them.
“This is a new paradox that the government has money, but cannot spend it,” drily remarked Roman Gotsiridze, a head of the Central Bank under former President Mikheil Saakashvili, local media reported.
Since regaining independence in 1991, Georgia generally has had the opposite problem, he added.
Being a parent is no easy task. Obedience is key. But when it comes to criticism from his political papa, 58-year-old billionaire Bidzina Ivanishvili, founder of Georgia's ruling Georgian Dream coalition, Georgian Prime Minister Irakli Gharibashvili appears willing to try and be the dutiful political son.
Following nationally televised criticism from Ivanishvili of his recent description of ex-Defense Minister Irakli Alasania as “an adventurist, foolish and ambitious,” Gharibashvili conceded in comments on November 10, that his remark, coming amidst a dramatic government shake-up last week, was perhaps a little out of line. “I, too, did not like what I said about Alasania,” he said.
He tried to amend his words after Ivanishvili, his career mentor and former boss, commented that “[e]motions must be reined in… “
Ivanishvili, though supposedly no longer interested in politics, has not restrained himself from weighing in heavily on last week’s dismissal of Alasania and the resignations of ex-Foreign Minister Maia Panjikidze and State Minister for European and Euro-Atlantic Integration Aleksi Petriashvil over Alasania's claims that NATO-membership plans are at risk.
Georgia's richest man may have no formal government status, but the main characters in the country’s ongoing political drama are now busy paying visits to billionaire ex-Prime Minister Bidzina Ivanishvili.
Fired ex-Defense Minister Irakli Alasania had his tête-à-tête with Ivanishvili, founder of the ruling Georgian Dream coalition, last night; now, Ivanishvili, generally seen as the real power behind the government, at latest report is currently meeting with Prime Minister Irakli Gharibashvili.
"One thing that we agreed on is to handle all political processes in a fashion that does not damage the state,” Alasania told TV reporters on November 7. “This was the gist of our conversation. We spoke of many things, but it obviously is going to stay between the two of us."
The November 6 evening meeting was at the agreement of both, he added. After being fired as defense minister earlier this week, Alasania had categorically refused to talk with Ivanishvili, who, for all his assurances that he has retired from politics, decided to drop in on a Georgian Dream meeting to discuss the coalition’s future. The meeting resulted in Alasania’s Free Democrats pulling out of the coalition and potentially leaving the group without a parliamentary majority.
Ivanishvili has not yet commented about his Alasania chat. No word has yet emerged about his talks with Gharibashvili, a former business associate.
The crisis that kicked off when former Defense Minister Irakli Alasania charged the government with trying to derail Georgia’s NATO-membership plans is all about one “adventurist, foolish, ambitious” minister, Prime Minister Irakli Gharibashvili insisted to an early-morning cabinet-meeting on November 6.
He also accused former Foreign Minister Maia Panjikidze, who stepped down following the dismissal of Alasania (her brother-in-law), of sabotage.
Many Georgians, though, suspect that the crisis has more to do with political rivalry. Gharibashvili reinforced that impression when he fumed to the cabinet that Alasania’s accusations amounted to a “betrayal” of the 2012 parliamentary victory that brought his Georgian Dream coalition to power.
Alasania’s party, the Free Democrats, yesterday left the Georgian Dream, forcing it to lose its parliamentary majority.
Georgian Prime Minister Irakli Gharibashvili has removed Defense Minister Irakli Alasania from office shortly after Alasania accused prosecutors of using investigations into the defense ministry to derail Georgia's plans for NATO integration.
In a brisk televised statement, Gharibashvili claimed that Alasania's comments about the investigations are "causing the politicization of the defense ministry" and "negatively" impacting "our country's security and the government's efficient work."
"Our country's Euro-Atlantic integration is not only our government's, but our people's, choice and this process is and will be unchangeable," he said.
A scandal over alleged contract-rigging by Georgia’s defense ministry has become the country’s main political intrigue, with some observers increasingly worried that prosecutors could begin circling around popular Defense Minister Irakli Alasania. Some question how bona-fide the reasons for this investigation may actually be, however.
Prosecutors allege that the former head of the defense ministry’s procurement department and four current officials fixed the ministry’s call for bids to award a lucrative contract to major communications company Silknet. They maintain that the ministry agreed to an above-market offer for the bid, thereby defrauding the state of 4.1 million lari or $2.34 million.
Deputy Defense Minister Aleksi Batiashvili, named as a “close relative” of Silknet’s financial director, has been called in for questioning as a witness in the case. He has claimed that he had nothing to do with the tender, which Silknet says occurred before his appointment.
The arrests occurred on October 28, while Alasania was in Germany on an official trip. Fresh back, he immediately spoke up for the detainees. “I am confident of the complete innocence of my employees, as, obviously, I was following the procurements and I know that everything was done in full compliance with the law,” Alasania said on November 1.
That knowledge, though, has prompted a few to wonder whether the prosecutors’ interest will next turn to Alasania himself.
Georgia’s jailed, former Interior Minister Vano Merabishvili was sentenced to three years in prison on October 20 for his alleged role in a haunting 2006 murder case. Once the all-powerful muscle of ex-President Mikheil Saakashvili’s administration, Merabishvili was found guilty of obstructing justice in the high-profile death of a 28-year-old banker, Sandro Girgvliani.
The court ruled that Merabishvili used his office to cover up evidence against his employees who abducted and beat Girgvliani, and left him to die. Grigvliani’s death, which followed an altercation in a Tbilisi cafe that involved Merabishvili’s wife, grew into a national scandal that would haunt the Saakashvili administration for years to come.
Merabishvili’s wife, Tako Salakia, and many interior ministry officials were present at the fateful birthday gathering, when Girgvliani showed up with a friend and got into an argument with the group. Several interior ministry officials allegedly later abducted Girgvliani and his friend, Levan Bukhaidze, and took them to the city’s outskirts to beat them. Girgvliani is believed to have died of his injuries or have frozen to death; Bukhaidze escaped.
Girgviliani’s mother, Irina Enukidze, engaged in a long and daring battle with the authorities, accusing them of covering up the murder. Her claims mushroomed into what became, essentially, the first large-scale public pushback against Saakashvili’s administration. With opposition parties and opposition-minded media by her side, she called for the resignation of Merabishvili and the arrest of his wife; both of whom she was convinced had given the order to teach Girgvliani a lesson.
Taxpayer-expensed Botox and hair-removal procedures are among the Georgian government’s latest charges of alleged misappropriation against ex-Georgian President Mikheil Saakashvili, whose property in Georgia was seized by police late last week.
And not only his. His wife and mother’s Tbilisi apartments and his grandmother’s 17-year-old Honda Accord were among the items seized on September 19 as apparent compensation for some $5-million worth of state funds prosecutors claim the ex-president misused for things like facials, spas and fancy clothes.
The case has not yet gone to trial, but prosecutors claim that the refusal of Saakashvili, now based in Brooklyn, to face a court in Georgia justified the seizure of his wider family’s property. “[T]here was a reasonable suspicion… that he would transfer or otherwise conceal his and his associates’ property to obstruct compensating for the damage to the state,” the General Prosecutor’s Office said in a September-19 statement.
But some are raising eyebrows at that reasoning. Saakashvili’s Dutch-born wife, Sandra Roelofs, said on Friday that she had purchased her Tbilisi apartment long before her husband became president in 2004, from funds derived from the sale of another flat which her father had given her as a wedding gift.
Times and governments may change in Georgia, but angst over supposedly imminent coups lingers on. Once again, Georgian officials, shading their eyes with their hands, have looked into the distance, and reported back to voters about a vague menace that only they can see.
This time, 29-year-old Georgian Interior Minister Aleksandre Chikaidze claims he has it on good authority that ex-President Mikheil Saakashvili and his legislative minority, the United National Movement (UNM), are plotting to destabilize the country, provoke the police, manipulate sensitive topics such as the bad economy or the Russian threat, and then seize power as Georgia descends into “chaos and anarchy.”
In a September 10 interview with a local tabloid, Chikaidze asserted that Saakashvili has recruited 500 agent-provacatuers — and some non-profit groups, as well — to bring the plan to life.
Chikaidze claimed that, as less than an on-camera natural, he, of course, will be targeted first. Apparently, that explains the recent criticism of his alleged failure to deal with a spate of murders and burglaries.
But this isn’t just the one-off of a minister known for his verbal gaffes. Now, Prime Minister Irakli Gharibashvili has gotten into the act, too, claiming that the threat is for real and the government won’t stand for it. The police have even launched an investigation.
In the latest episode of the cat-and-mouse game between Georgia's current authorities and its former president, Mikheil (Misha) Saakashvili allegedly nearly escaped arrest in Greece.
The Georgian government may not be aware of it, but its attempts to catch the ex-president increasingly resemble Road Runner and Wile E. Coyote. Though Saakashvili and his entourage ardently deny it, Georgian officials claim that border guards at the Greek vacation island of Samos on September 1 briefly detained a yacht carrying the ex-president and “other Georgian citizens.”
Georgian prosecutors asserted that they had alerted the Greek police about the menace approaching their shores, but the Greek authorities released Saakashvili for lack of an international arrest warrant. Georgian Ambassador to Greece Davit Bakradze claimed that the boat arrived from Turkey, and was detained for four hours. Also on board allegedly was Saakashvili's friend, the former governor of Georgia's seaside region of Achara, Levan Varshalomidze.
Georgia’s general prosecutor’s office said it has yet to convince Interpol to place the former Georgian president on the organization's international search list.
In September 3 comments to Rustavi2, Saakashvili angrily denied that he had been detained in Greece for any length of time.
Saakashvili's longtime aide and ex-National Security Council chief, Giga Bokeria, accused Georgia's ambassador and the ruling Georgian-Dream coalition of spreading petty rumors.