Prosecutors charge two people, including ex-Defence Minister Burchuladze, over bribery scheme involving procurement fraud

The Prosecutor’s Office of Georgia has formally charged two individuals, including former Minister of Defence Juansher Burchuladze, in connection with a conspiracy to solicit and aid large-scale bribery.

According to an official statement released by the prosecuting authority,
the State Security Service investigation revealed that Burchuladze held the post of Minister of Defence from 2021 to 2024 as a high-level state official. Under Georgian law, he was directly accountable to the Prime Minister, with a mandate to oversee ministerial units and exercise official supervision over all decisions within his portfolio.

“In late 2022, the Ministry of Defence required various high-value medical devices and equipment to be procured under classified procurement rules. Seeking to exploit these procedures for unlawful financial gain, Burchuladze’s relative, Vasil Mkheidze, acting in agreement with the Minister, approached an experienced business associate. Mkheidze offered to structure the procurement call to guarantee that a company linked to the associate would win at an inflated price, demanding a 10% cash kickback on the total contract value in return.

When the business associate initially hesitated and sought guarantees from higher authorities, then-Defence Minister Juansher Burchuladze reached an understanding with then-Prime Minister Irakli Garibashvili. They agreed that the Ministry of Defence would execute procurement orders structured to ensure the associate’s companies secured contracts at preferred rates in exchange for substantial illegal kickbacks.

Backed by the full patronage of Irakli Garibashvili, who demanded his own cut of the profits and vouched for the chosen businessman, Burchuladze ordered his then-deputy, Giorgi Khaindrava, and procurement chief Vladimer Ghudushauri to rig the bidding process. The officials deliberately stifled competition during the ministry’s procurement of medical equipment and supplies for the Giorgi Abramishvili Military Hospital. This uncompetitive environment allowed them to inflate prices artificially through fraudulent deals under classified procurement contracts.

As a result, across three classified procurement contracts, companies linked to the associate supplied medical apparatus and equipment with a real market value of 11,499,705 GEL to the Ministry of Defence at an inflated price of 18,484,960 GEL.

Alongside these procurement deals, the participating businessman handed Vasil Mkheidze approximately 10% of the total contract values, 1,900,000 GEL in cash, across several instalments. Mkheidze retained 400,000 GEL for himself and passed the remaining 1,500,000 GEL to Juansher Burchuladze. Burchuladze pocketed 750,000 GEL, having passed the remaining 750,000 GEL in cash to Irakli Garibashvili in multiple instalments.

The fraudulent scheme caused significant financial damage to the state, totalling 6,985,255 GEL, and severely breached public trust.

Burchuladze has been charged under Article 338 (Part 2, Subparagraphs “a” and “c”; Part 3, Subparagraph “e”) of the Criminal Code of Georgia, while Mkheidze faces charges under Articles 25 and 338 for aiding and abetting large-scale bribery by a public official in a group conspiracy, offences carrying prison sentences of 11 to 15 years.

“The public is reminded that former Prime Minister Irakli Garibashvili has already been charged in relation to this criminal episode. Given the degree of cooperation provided by Juansher Burchuladze and Vasil Mkheidze during the investigation, the Prosecution will submit motions at the initial court hearing for a summary judgment approving plea agreements.

Under the proposed plea terms, Juansher Burchuladze will plead guilty and be sentenced to five years’ imprisonment, comprising three years in a penal institution and two years suspended on probation, alongside a 1,000,000 GEL fine. Vasil Mkheidze will be sentenced to four years and two months, serving one year and two months in prison with three years suspended, alongside a 100,000 GEL fine. Both individuals are already serving sentences in connection with separate criminal convictions,” the statement concluded.