Watchdog Reports on MPs’ Undeclared Companies

Georgian lawmakers’ undeclared business assets and activities incompatible with their status remains a “problematic issue,” said the Transparency International Georgia, a local watchdog, in a report published on December 10.

TI Georgia said 62 out of 150 MPs have business connections, of which 20 failed to fully declare their direct entrepreneurial activities (having company shares or being a company representative), while 13 lawmakers incompletely declared their indirect entrepreneurial activities. 

The report found that 12 lawmakers were exercising representative authority of companies, while simultaneously working in the Parliament. The list includes three GD lawmakers, including GD faction chair MP Mamuka Mdinaradze, seven UNM MPs (4 serving as company directors, others are individual entrepreneurs), as well as Iago Khvichia of Girchi and Tamar Charkviani of Law and Justice party.

Noteworthy, parliamentarians in Georgia are not allowed to be directly engaged in a repeated activity of managing material and financial assets for profit; or to directly exercise the powers of a permanent head or a member of a supervisory, control, revision or consultative body of an entrepreneurial company.

The watchdog also said 10 lawmakers have incompletely indicated their share ownership in the asset declarations, including David Kacharava (GD), Nona Mamulashvili (UNM), Levan Mgaloblishvili (GD), Tsezar Chocheli (UNM), Tariel Nakaidze (formerly European Georgia), Nino Tsilosani (GD), Dilar Khabuliani (UNM), Iago Khvichia (Girchi), Zaal Dugladze (GD), and Pridon Injia (European Socialists).

According to the document, in further 25 cases, shares were not transferred to another person with the right to manage.

TI Georgia said of the 62 business-connected lawmakers, only 22 indicated that they had received income from business activities. According to their asset declarations, TI Georgia found that Kakhaber Okriashvili, former ruling party MP who switched sides before the 2020 parliamentary vote and now serves as UNM-led Strength in Unity bloc lawmaker, had declared GEL 11,268,533 (USD 3,635,010) as his annual business income, that is 7 times more than that of the next MP in the list.

Other lawmakers on the top of this chart are Pridon Injia (European Socialists) with GEL 1,528,556 (USD 493,082), Anton Obolashvili (ruling Georgian Dream) with GEL 1,418,917 (USD 457,715) and Elguja Gotsiridze (GD) with GEL 1,263,590 (USD 407,609) of the declared enteprenerial income.

TI Georgia also highlighted that seven MPs hold business assets in more than 10 companies:

  • Badri Japaridze (Lelo)- 32 companies
  • Mamuka Khazaradze (Lelo)- 30 companies
  • Vasil Chigogidze (GD) – 22 companies;
  • Avtandil Enukidze (European Socialists) – 20 companies;
  • Pridon Injia (European Socialists) – 20 companies;
  • Kakhaber Okriashvili (Progress and Freedom/UNM bloc) – 12 companies;
  • Dilar Khabuliani (UNM) – 10 companies

The watchdog said they have no capacity to check whether the undeclared companies are in fact currently engaged in entrepreneurial activities and that The Civil Service Bureau should be interested in the issue.

Noteworthy, the information about MPs’ asset declarations and their shares in companies was given in the report as of 16 September 2021. Since then, the parliamentary composition has slightly changed, with for instance Mamuka Khazaradze having quit the legislature in November.

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