Tbilisi City Court Fines Ex-Defence Minister, Former State Procurement Dept Head Euro 5 million in Favor of Ministry of Defense
By Natalia Kochiashvili
Wednesday, March 30, 2022
Tbilisi City Court has ordered former Minister of Defense Davit Kezerashvili and former head of the Procurement Department Alexander Ninua to pay the equivalent of 5,060,000 euros in GEL. Former officials were charged with abuse of office and misappropriation/embezzlement of large sums of money from the state.
“The case concerned the transfer of a large amount of money for the provision of certain services in favor of the company registered in the offshore zone GIRWOOD BUSINESS CORP”, but the Ministry did not receive these services (exercises). Kezerashvili and Ninua were found guilty on the basis of the conviction of the Supreme Court of Georgia on September 7, 2021.
“The same verdict established that the Ministry of Defense suffered material damage in the amount of Euro 5,060,000 due to the guilty actions of the mentioned persons,” the statement reads.
Prime Minister of Georgia Irakli Gharibashvili accused the former Defense Minister of transfering the budget money in his companies’ offshore accounts ‘even during the war’.
“He was embezzling the budget allocated for the army and Georgian soldiers. Instead of financing activities against the Georgian state, it would be better to pay the amount that he stole from the Georgian army.” Chairman of the parliamentary committee on Regional Policy and Self-Government Sozar Subari said adding that Kezerashvili, will likely have to return the money to ‘European pensioners robbed through so-called call centers’ that and take responsibility for that.
Subari also asserted that Georgian televisions financed by Kezerashvili accuse authorities of controlling those call-centers, which is ‘completely unjustified’. Recall that ex defense minister holds a 51% share in the opposition-minded Formula TV channel.
Following the news, Formula TV executives and Kezerashvili's lawyer stated that the Georgian Dream Government intends to freeze Kezerashvili's interest in the government-critical broadcaster.
While the asset freeze is not ‘on the table currently,’ according to Zurab Gumbaridze, General Director of Formula TV, it is the authorities' ultimate aim.
According to the Formula channel, its majority shareholder does not intend to pay the required compensation and will appeal the verdict to a higher court. Shota Mindeli, Kezerashvili's lawyer, predicted that the Defense Ministry will eventually ‘argue it was unable to collect compensation for the losses’ and pursue the asset freeze.
The Defense Ministry earlier stated that it had no plans to seek that Kezerashvili's Formula TV investment be frozen.
A number of criminal proceedings have been brought against Kezerashvili since the change of government in Georgia in late 2012. In two of them, heard in Georgian courts, Kezerashvili was convicted in absentia.
Georgia has twice requested Kezerashvili’s extradition from France and the United Kingdom, however the requests were declined.
