Georgian security service arrests B.P. TRANS executives over alleged $1.5m fraud

Georgia’s State Security Service (SSS) on Wednesday announced the arrest of executives from the company B.P. TRANS over the alleged embezzlement of 4,184,249 GEL (around $1.5 million) belonging to the Ministry of Regional Development and Infrastructure. The arrests were carried out in coordination with the Georgian Prosecutor’s Office, following a court order.

In a statement, the agency said the company’s director V.K., an employee I.Ch., and three supervisory staff involved in contract oversight had been detained. The company’s former director and 100% shareholder, B.P., is currently at large and will face charges in absentia.

Investigators allege that between June 2021 and September 2022, B.P. TRANS officials misappropriated funds through deception during the execution of road construction and repair works, including on the Kutaisi-Alpana-Mamisoni highway and in parts of Oni municipality damaged by natural disasters.

The case is being investigated under Articles 180(3)(b) and 25, 180(3)(b) of the Georgian Criminal Code, which cover fraud and aiding fraud, punishable by six to nine years in prison.

The SSS said that operations are ongoing to identify additional participants and determine the appropriate legal qualifications. Officials stressed that the aim of the investigation was not simply to make arrests but to prevent corruption. They encouraged anyone involved in corrupt schemes to cooperate with authorities, noting that collaboration could result in legal leniency.