The Investigative Service of the Ministry of Finance of Georgia has detained Davit Tabidze, the former Executive Director of the Municipal Development Fund of Georgia (MDF), on charges of abuse of official authority, the agency announced during a briefing.
Alongside Tabidze, the fund’s programme manager and project manager have also been detained; the two cooperated fully with the investigation and were later released on bail as a preventive measure.
The investigation is proceeding under Part 1 of Article 332, Parts 2 and 3 of Article 180, Parts 2 and 3 of Article 194, and Part 2 of Article 362 of the Criminal Code of Georgia, offences that carry potential prison sentences of 9 to 12 years. The agency says officials of LLC Lagi Capital are accused of fraudulently appropriating GEL 9,365,801 of the GEL 11,218,380 they received in advance payments from July 2023 through May 2024 for the rehabilitation of 30 kindergartens, and also of legalising illicit income of GEL 1,211,000. The investigation determined that the advance payments were unjustified and only partially covered by appropriate security; despite knowing that the July 2023 advance had not been used for its intended purpose, officials still authorised the additional disbursement in favour of Lagi Capital. The MDF — established in 1997, a legal entity of public law tasked with strengthening the institutional and financial capacity of local government units and investing in infrastructure projects across Georgia — is at the centre of the case.
The agency stated that investigations are continuing intensively to identify other individuals involved and ensure appropriate action is taken.
