Representatives of Investigation Service of the Ministry of Finance of Georgia detained two individuals on the facts of misappropriation of a large amount of the state property by deceit and legalisation of illegal income.

The accused persons, A.B. and B.B, through LLC „Lagi Capital“, won 11 tenders announced in 2023 by the LEPL Municipal Development Fund for the reconstruction and rehabilitation of kindergartens, which envisaged the rehabilitation of 30 kindergartens. As of today, construction works have not been completed at any of the facilities.

In addition, according to the contract signed with the LEPL „Educational and Scientific Infrastructure Development Agency“, one school was planned to be built in the Gori municipality and three in the Khashuri municipality. In this case as well, not a single school has been built.

The total value of the contracts awarded through the announced tenders amounted to GEL 94 444 427.

With the aim of misappropriation of a large amount of the state-owned funds, the accused, together with other members of the criminal group, planned to register themselves in the qualified supplier registry, the so-called „white list“, which grants the supplier the privilege of benefiting from simplified procedures for receiving advances. In order to complete the criminal intent, the accused took advantage of the above-mentioned benefits, by submitting only a 50% bank guarantee, thereby fraudulently acquiring GEL 9 365 801 out of the GEL 11 218 380 that had been advanced by the Municipal Development Fund.

In order to conceal the illegal origin of the money, part of the misappropriated amount, GEL 1 211 000 was transferred under a fictitious purpose to another company owned by the accused, from which the funds were distributed to various interconnected individuals, thereby legalizing the illegal income.

Investigation is underway under the second and third parts of Article 180 and the second and third parts of Article 194 of the Criminal Code of Georgia, which as a type of sentence, envisages imprisonment from nine to twelve years.

Investigation on the case continues intensively, in order to identify other accomplices in the crime, including current and former public officials, as well as to prevent other criminal activities in the financial and economic field.