The State Security Service of Georgia (SSSG) has detained the former Deputy Minister of Defense as part of an investigation into the alleged embezzlement of over 1.3 million GEL from the Ministry of Defense in 2023. The crime is believed to have been carried out by a group of individuals who colluded and abused their official positions.
SSSG says the Anti-Corruption Agency, following a court order, arrested three individuals: former Deputy Minister of Defense G.Kh., former Head of the Procurement Department V.Gh., and V.M., a close relative of the then-Minister of Defense.
The investigation alleges that the group devised and executed a scheme to misappropriate 1,333,728 GEL from the state budget. Key figures in the group, including the Chair and Deputy Chair of the Ministry’s Procurement Commission, reportedly organized the purchase of medical equipment without conducting legitimate market research. The tender process was manipulated to include only companies closely connected to V.M.
To further disguise the scheme, the price of the medical equipment was artificially inflated through multiple fictitious resale transactions between private companies. These transactions were supported by false tax documentation issued on the same day, helping to conceal the fraud.
As a result, the Ministry of Defense is said to have paid significantly above-market prices for the medical equipment.
The investigation also found that V.M. allegedly assured the selected companies of guaranteed success in the procurement process, citing personal ties with high-level officials as leverage.
The financial damage to the state is estimated at a minimum of 1,333,728 GEL.
The case is being investigated under Article 182 of the Criminal Code of Georgia—Section 2, Subparagraphs “a” and “d,” and Section 3, Subparagraph “b”—which is punishable by 7 to 11 years of imprisonment.
Further investigative actions are underway to identify and prosecute additional individuals involved in the scheme, the State Security Service said.
