According to the Investigation Service of the Ministry of Finance of Georgia, 2 individuals have been arrested for fraudulently acquiring a large amount of state property and legalizing illegal income.

According to them, the case concerns 12 tenders, the total value of which is 94,444,427 GEL and involves the construction of 30 kindergartens and 4 schools.

“The employees of the Investigation Service of the Ministry of Finance of Georgia have detained 2 persons on the facts of fraudulent appropriation of a large amount of state property and legalization of illegal income.

The defendants, A.B. and B.B., through LLC “Lagi Capital”, won 11 tenders announced by the Municipal Development Fund for the reconstruction and rehabilitation of kindergartens in 2023, which envisaged the rehabilitation of 30 kindergartens. As of today, construction work has not been completed on any of the facilities.

In addition, according to the agreement signed with the LEPL “Educational and Scientific Infrastructure Development Agency”, one school was to be built in Gori Municipality, and three in Khashuri Municipality. In this case, no schools have been built.

The total value of the announced tenders amounted to 94,444,427 GEL.

The investigation is ongoing under Parts 2 and 3 of Article 180 and Parts 2 and 3 of Article 194 of the Criminal Code of Georgia, which provides for imprisonment for a term of 9 to 12 years.

The investigation into the case continues intensively in order to identify other persons who participated in the crime, including current and former public officials, and to prevent other criminal facts in the financial and economic sphere,” reads the information.