The Prosecutor’s Office of Georgia has charged two representatives of the company Lagi Capital, detained by the Investigative Service of the Ministry of Finance, with large-scale fraud, money laundering, and forgery of official documents.
Investigators say in February 2023 the Municipal Development Fund announced tenders for the design and construction of kindergartens in several municipalities, including Chokhatauri, Ozurgeti, Mtskheta, Ninotsminda, Dedoplistskaro, Gori, and Batumi. To secure the contracts, the accused allegedly submitted forged audit reports on the company’s work experience.
After winning the tenders, they requested and received advance payments from the Fund, despite the fact that in most cases construction projects had not yet been approved. Investigators say that the group fraudulently appropriated 9,365,000 GEL without fulfilling their contractual obligations.
To disguise the origin of the funds, more than 1.2 million GEL was transferred to another company under their ownership, formally as an advance for services. The money was later used for various purposes, including loan repayments, thereby laundering the funds into the legal financial system.
The Prosecutor’s Office has charged the detainees under Articles 180, 194 (parts 2 and 3), and 362 (part 2) of the Criminal Code of Georgia, which envisage 9 to 12 years of imprisonment. The prosecution announced it will request pre-trial detention as a preventive measure.
Image: IPN
