Parliament’s Finance and Budget Committee has supported, in the first reading, amendments to the Organic Law on the State Audit Office that would expand the institution’s powers and increase penalties for non-compliance.
The draft legislation, reviewed under an expedited procedure, concerns the Audit Office’s operations, audit authority, and internal governance rules.
Presenting the bill, First Deputy Chair of the Finance and Budget Committee Irakli Kheladze said the amendments would extend the Audit Office’s oversight powers to include the Georgian National Communications Commission and the State Insurance Supervision Service.
“Their audit will be conducted under the same principles currently applied to the National Bank. The audit will cover only administrative and capital expenditures, and the Audit Office will not interfere in the decisions of regulators,” Kheladze said.
Under the proposed changes, auditors would be granted the right to request information related to state procurement directly from companies and individuals participating in procurement procedures.
The bill also proposes increasing the fine for failing to provide requested documentation or submitting false information from GEL 1,000 to GEL 5,000.
In addition, the Audit Office would be allowed to access and process data from electronic databases of other administrative bodies on the basis of memorandums signed with those institutions.
The amendments also introduce the position of Public Relations Secretary, tasked with coordinating communication with other agencies on the instructions of the Auditor General. Lawmakers say the new position will not require additional budget spending.
The draft further clarifies that financial, compliance, and performance audits may cover both ongoing and completed activities.
