The State Security Service of Georgia (SSSG) has detained the former Deputy Minister of Defense. The investigation concerns the alleged embezzlement of over 1.3 million GEL from the Ministry of Defense in 2023. According to the SSSG, the crime was committed by a group acting in prior agreement and abusing their official positions.

“As a result of operational-search and investigative activities carried out by the Anti-Corruption Agency of the State Security Service of Georgia, and based on a court ruling, the former Deputy Minister of Defense of Georgia, G.Kh., the former Head of the Procurement Department of the same Ministry, V.Gh., and a close relative of the then Minister of Defense, V.M., have been detained.

The case involves the alleged embezzlement of a large sum of money from the Ministry of Defense in 2023 by a group of individuals who acted in collusion and abused their official positions.

The investigation has so far revealed that the group devised and implemented a scheme through which 1,333,728 GEL was misappropriated from the state budget.

Some members of the group, who also served as the Chairman and Deputy Chairman of the Procurement Commission, conducted the procurement of medical equipment without performing any real market research. The procurement process was manipulated to involve only enterprises closely linked to V.M.

Furthermore, the cost of the equipment was deliberately inflated through multiple fictitious resale transactions involving private companies. These transactions were backed by false tax documents issued on the same day, further concealing the fraud.

As a result, the Ministry of Defense purchased the medical equipment at prices significantly above market value.

The investigation also uncovered that a close relative of the then Minister of Defense, V.M., had promised guaranteed success in the procurement process to pre-selected companies, citing personal connections with key officials as a guarantee of victory.

These criminal actions caused financial damage to the state amounting to at least 1,333,728 GEL.

An investigation is ongoing under Article 182, Section 2, Subparagraphs “a” and “d,” and Section 3, Subparagraph “b” of the Criminal Code of Georgia, which carries a sentence of 7 to 11 years of imprisonment.

Further investigative actions are underway to identify and prosecute other individuals involved in the case,” the State Security Service stated.