Transparency International Georgia studied the electronic auctions organized by the Ministry of Finance and Economy of Adjara from January 1, 2025, to the present, the goal of which was the privatization of real estate in Adjara.

According to the organization, during this period, the Ministry announced a total of 69 electronic auctions. Of these, 54 auctions were not held due to the absence of participants. Consequently, the property put up for sale at these auctions could not be sold. Out of the 15 completed auctions where winners were identified, 8 were uncompetitive. Only one bidder participated in these uncompetitive auctions, and the real estate put up for them was sold at the initial privatization value with a minimal price increment, in a single auction bidding step.

“As a result of all fifteen auctions, 15 plots of land with a total area of 40,521 sq.m and 6 related buildings with a total area of 814.3 sq.m were alienated. The initial privatization value of these properties was 16,781,000 GEL, which increased by 3,626,300 GEL as a result of trading at the auctions, and ultimately, the Adjara budget received an income of 20,407,300 GEL. Properties put up for auctions held in a competitive environment were sold for one and a half times more than the privatization price, while properties put up for uncompetitive auctions were sold with minimal price increments.

On August 25, 2025, without competition and with a price increment of 3,300 GEL, LLC "Khidi-2006", a company owned by businessman Ednar Papunaishvil - a friend of the illegitimate Chairman of the Government of Adjara, Zurab Pataradze—won an unconditional electronic auction announced for the sale of a 383 square meter plot of land located in the Goderdzi resort for 136,300 GEL.

The shareholders, directors, and family members of two companies that won the electronic auctions are major donors to the ruling party, "Georgian Dream - Democratic Georgia"—at different times they have donated a total of 1,387,000 GEL. Among them, 1 company (LLC "Nova") won the auction without competition, while the director and 50% beneficial owner of the second company is Shota Phutkaradze, a member of the Khelvachauri City Council from "Georgian Dream". Shota Phutkaradze's father, Otar Phutkaradze, is a 25% shareholder of LLC "Bondi 2009" and a major donor to "Georgian Dream". In total, they purchased 2 plots of land with a combined area of 20,481 square meters and 2 buildings with a combined area of 417.72 square meters, which are located in commercially attractive areas in Batumi, on Baku Street, adjacent to the port, and in the industrial zone.

From their establishment to the present, the 2 companies (LLC “Nova” and LLC “New Style”) that won the auctions have received a total income of 59,540,688 GEL from state procurement. Among these, they won 50 electronic tenders with a total value of 15,862,903 GEL without competition.

The establishment/registration date of 1 company that won the electronic auctions is noteworthy: LLC "Gode 2026" was established after the auction was announced and one week before the auction concluded.

In recent years, the number of failed auctions indicates problems in real estate privatization. Specifically, out of the electronic auctions announced in 2022-2024, 266 failed, and 54 of the electronic auctions announced from January 1, 2025, to the present did not take place.

As a result of the failed auctions, the revenue plan for the republican budget of Adjara for the respective years was not fulfilled. Specifically, in 2024, it was planned to receive an income of 112,650,000 GEL from the privatization of real estate, while 22,835,500 GEL was actually received. In the first 9 months of 2025, it was planned to alienate real estate worth 125,055,555 GEL, instead of which real estate worth 4,500,200 GEL was alienated, which is 3.6% of the plan”, reads the information released by the organization.