TI Georgia: 38% of FDIs came from offshore companies between 2011-2020
Transparent International Georgia NGO says that the absence of regulations for offshore companies contributes to corruption in Georgia. Photo: Nino Alavidze/Agenda.ge.
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Georgia has received %5.2 billion in Foreign Direct Investment (FDI) from offshore companies between 2011 and 2020 which amounts to 38% of total FDIs of the period, says Transparency International Georgia.
In its survey on offshore companies, business interests and corruption threats, TI says that 3,200 companies are registered in Georgia which are partly or fully owned by offshore companies.
The NGOs say that high ranking Georgian officials, who are banned from business activities, may own several offshore companies and participate in state procurements in this way.
The NGO says that the companies registered offshore own up to 160 large and medium enterprises and companies in the country like Tbilisi Energy, Beeline, Rustavi Auto Market, Batumi International Container Terminal, Rustavi Steel and others.
კვლევის ფარგლებში მოხერხდა ისეთი 10 ოფშორული კომპანიის იდენტიფიცირება, რომელიც ბიძინა ივანიშვილთან არის დაკავშირებული#ოფშორი #ელიტურიკორუფციაhttps://t.co/9PYD7fGW8a
— საერთაშორისო გამჭვირვალობა-საქართველო (@TIGeorgiaGeo) June 10, 2021
We have identified 10 offshore companies which are connected with the founder of the ruling Georgian Dream party Bidzina Ivanishvili. For their part the 10 companies own 26 Georgian companies,” said the NGO.
TI Georgia says that six offshore companies received state properties via direct privatisation between 2012 and 2020, while three of them received the property at a symbolic price.
15 offshore companies received state properties via auction. The privatisation price of the property is about 77 million GEL,” said the NGO.
The NGO recommends that like many developed states Georgia should elaborate rules for offshore companies.
The NGO says that according to international practice the owners of offshore companies should be identified at least when the companies or their daughter companies participate in state procurements, state property privatisation or any other state-funded programmes.