Company director arrested after failing state contract terms, acquiring property with tender funds - Prosecutor's Office

The Prosecutor's Office of Georgia on Wednesday announced the arrest of the Director of the company Metal+ on charges of misappropriation of state tender funds and failure of meeting terms of a contract awarded to the entity for creating infrastructure in the country’s east.

The Office said the company had been awarded contracts worth ₾1,091,329 ($388,373) through electronic tenders initiated by the Sagarejo Municipality City Hall in the eastern Kakheti region, and was expected to create tourism and business infrastructure in the locality.

After receiving ₾893,522 ($317,979) – including an advance payment of ₾763,931 ($271,861) – the company allegedly failed to meet the contractual obligations and spent “only a fraction of the funds” while “misappropriating a substantial amount”, it added.

The National Bureau of Forensic Examination determined the actual value of the work completed by the company amounted to ₾212,840 ($75,743).

In a bid to conceal the misappropriated funds, the Director allegedly used the funds to pay off its bank debts, before acquiring a flat and four vehicles as a private individual, the Office said.

The total amount allegedly laundered in the process was measured at ₾680,682 ($242,235), with authorities seizing the assets as part of the ongoing investigation.