Former Georgia's Deputy Defense Minister arrested in large-scale embezzlement case

Georgia’s State Security Service (SSS) has announced the arrest of the country’s former Deputy Defense Minister, identified as G.Kh., in connection with a major embezzlement case involving over 1.3 million GEL from the state budget.

According to the statement, the case concerns the alleged embezzlement of a substantial amount of public funds in 2023 by a group acting in collusion and abusing official positions within the Ministry of Defense. Alongside G.Kh., the former head of the Ministry's Procurement Department, V.Gh., and V.M., a close relative of the then-defense minister, have also been detained.

The investigation, carried out by the Anti-Corruption Agency of the State Security Service, revealed that the group developed and executed a plan to siphon off funds allocated for the purchase of medical equipment. The procurement process was allegedly manipulated to favor companies closely linked to V.M., who is said to have guaranteed successful bids by leveraging personal ties with decision-makers.

Authorities claim that no genuine market research was conducted prior to the acquisition. Instead, fake transactions and falsified tax documents were used to artificially inflate the price of medical equipment through a series of fictitious resales on the same day.

As a result, the Ministry of Defense purchased medical inventory at prices significantly above market value, causing the state an estimated loss of 1,333,728 GEL (approximately $480,000).

Investigators also uncovered that V.M. promised selected companies guaranteed victory in the procurement tenders in exchange for loyalty and used his connections with key officials to influence outcomes.

The case is being investigated under Article 182 of Georgia’s Criminal Code (subsections 2-a, 2-d, and 3-b), which carries a sentence of 7 to 11 years in prison. The Security Service notes that the investigation is ongoing and aims to identify and prosecute additional individuals involved in the scheme.