The State Audit Service has published a compliance audit report on the Georgian Football Development Fund covering 2022-2023, identifying procurement and financial management shortcomings in the purchase of video assistant referee (VAR) systems and related services.
The report focuses on the implementation of VAR technology in the National Championship and the Davit Kipiani Cup. It says the Football Development Fund was responsible for preparatory work and market research, while the Georgian Football Federation concluded the contract.
Auditors say that at the market research stage, the Fund incorrectly combined goods and services of different functional purposes into a single procurement item, including VAR systems, vehicles, video referee services, and match broadcasting for TV and YouTube. This, the report says, led to distorted market price estimates and an agreement that did not reflect market conditions.
Ultimately, the Federation purchased two mobile VAR systems and two vehicles for their transportation from ‘GFM Studio’ for GEL 846,283. The audit finds that the procurement included an 84% markup on the VAR systems.
The contract also included a separate item for so-called “unforeseen expenses,” amounting to 3% of the total value, or GEL 20,889, which was fully reimbursed to the supplier. The auditors note that the contract did not define the purpose of this payment and that such compensation is not standard practice in goods procurement.
The report further highlights deficiencies in control mechanisms during contract administration, which, it says, contributed to the reimbursement of unjustified “unforeseen expenses.”
In addition, the audit identifies overpayment in 2023 for VAR video refereeing services. It says the purchaser did not properly consider the terms of a previous agreement or market research results, leading to an overpayment of GEL 285,100.
Separately, the report says six football clubs failed to meet their obligations under agreements with the Fund in 2022-2023, resulting in receivables totaling GEL 610,130, including GEL 266,676 classified as inappropriately spent funds.
The audit also notes that the Fund did not take appropriate enforcement measures in relation to these outstanding obligations.
The findings point to weaknesses in procurement planning, contract structuring, and financial control within the football development system.
