Five detained in Georgia over alleged embezzlement of state funds in social programmes

Georgia’s State Security Service of Georgia on Thursday said it had uncovered a large-scale fraud scheme involving the misappropriation of state funds allocated for social programmes, resulting in the detention of five individuals.

According to the agency’s Anti-Corruption Division, the suspects include the director of a private company, four directors of subcontractor firms, and one employee. The arrests were carried out on the basis of a court order following operational and investigative measures.

Investigators said that between 2023 and 2026, the company Aladashvili & Co signed a total of 12 contracts with district administrations in Tbilisi - including Isani, Chugureti, Mtatsminda, and Krtsanisi - for the provision of free canteen services to socially vulnerable citizens. The total value of the contracts amounted to 26.5 million GEL.

According to the investigation, the company subcontracted the management of four out of 22 canteens to other firms - Gidi LLC, Bade LLC, and Alioni LLC.

Authorities alleged that during 2024-2026, the companies failed to properly deliver services to up to 14,451 beneficiaries on a daily basis and instead falsified delivery and acceptance documents.

Through this scheme, investigators said the suspects fraudulently misappropriated approximately 3.53 million GEL out of 18.9 million GEL received from municipal administrations.

The crimes carry penalties of six to nine years.

The State Security Service said it will continue efforts to detect and prevent corruption-related crimes, warning both business representatives and public officials to act in full compliance with the law.

“Any criminal activity will be met with an immediate response from the state, and the fight against corruption will remain consistent and irreversible,” the agency said in a statement.