Former Defence Minister’s relative officially charged in large-scale embezzlement case

Vasili Mkheidze, a relative of Georgia’s former Defence Minister Juansher Burculadze, has been officially charged with large-scale embezzlement, the State Security Service of Georgia confirmed on Monday. 

Mkheidze was detained on suspicion of aiding al group in misappropriating over 1.3 million Georgian lari from the state budget through inflated procurement costs of medical equipment in 2023.

Speaking to journalists after leaving the detention facility, Mkheidze’s lawyer, Zaal Gurasashvili, said his client denies the charges. However, Gurasashvili declined to comment further due to limited access to case materials at this stage.

“The accused does not admit guilt. The case files have not yet been provided. A hearing on preventive measures may take place today. I cannot provide more details at this time,” the lawyer stated.

When asked whether Mkheidze used the former minister’s name to influence tenders, the lawyer responded in the negative.

The investigation claimed companies closely connected to Mkheidze were the only ones permitted to participate in procurement procedures for medical equipment. The process was allegedly orchestrated to artificially inflate prices through repeated resale of the equipment.

The scheme resulted in the loss of GEL 1,333,728 from the Defence Ministry’s budget.

Mkheidze faces charges under Article 182, Part 2 (a) and (d) and Part 3 (b) of the Criminal Code of Georgia, which relates to the abuse of official position leading to the large-scale misappropriation of funds.

If convicted, he could face between seven and eleven years in prison.

Mkheidze is the brother of the wife of Burculadze.