The Investigation Service of Georgia’s Ministry of Finance has detained former Deputy Minister of Regional Development and Infrastructure Koba Gabunia on charges of abuse of power by a public official, Deputy Head of the Investigation Service Ia Akhalaia announced at a briefing.
Akhalaia claimed that investigative searches were conducted at the homes of Gabunia, former Minister Irakli Kharseladze, and several other individuals — a total of 20 locations were searched as part of the operation jointly carried out by the State Security Service and the Ministry of Finance.
The case reportedly involves the rehabilitation of 30 kindergartens funded through the Municipal Development Fund (MDF) of Georgia.
“The Investigation Service, in cooperation with the State Security Service, detained former Deputy Minister Koba Gabunia — the former curator of the Municipal Development Fund — on charges of abuse of official authority,” Akhalaia said.
Earlier, the investigation led to the arrests of former MDF Executive Director Davit Tabidze, a program manager, and a project manager from the same fund. They have since cooperated with investigators and were released on bail.
The investigation also uncovered that executives of the company “Lagi Capital” were arrested for fraudulently misappropriating GEL 9,365,801 allocated for the kindergarten rehabilitation project and for laundering GEL 1,211,000 in illicit income.
Based on case materials, between July 2023 and May 2024, “Lagi Capital” submitted unjustified advance payment requests to the Municipal Development Fund. Acting on Gabunia’s alleged orders, officials from the fund approved unwarranted advance transfers totaling GEL 11,218,380, despite prior funds not being used for their intended purpose.
The investigation is being conducted under Articles 332 (abuse of power), 180 (fraud), 194 (money laundering), and 362 (document forgery) of the Criminal Code of Georgia, which carry prison sentences ranging from 9 to 12 years.
“Together with the Prosecutor General’s Office and the State Security Service, we continue intensive investigative and operational measures to identify and prosecute those involved in corruption and to prevent similar crimes in the future,” Akhalaia emphasized.
