23 June 2021,   10:23
Company that belongs to the business partner of Kutaisi Deputy Mayor wins local tenders - TI Georgia

According to the Transparency International Georgia, the company that belongs to the business partner of the Deputy Mayor of Kutaisi - Iuza Ugulava, wins the tenders of Kutaisi Municipality. It should be noted that Iuza Ugulava has been leading the tender commission since 2019.

In 2019-2021, Liko-1 Ltd won 5 electronic tenders announced without an auction by Kutaisi City Hall. Zaal Khidasheli, who is the owner of 100% of the shares and the Director of this company, is a business partner of the Deputy Mayor of Kutaisi, Iuza Ugulava. Iuza Ugulava and Zaal Khidasheli own 50-50% of the shares in Iuko Ltd., whose Director is Khidasheli as well.

The total value of the contracts amounted to GEL 294,545. In 2019, the company won a tender worth of GEL 114,220, in 2020 – worth of GEL 16,000, and on March 5, 2021, a contract was signed with the company worth of GEL 164,325. In four out of five tenders, Liko-1 Ltd had no competitor. The company had to make and install benches for Kutaisi squares.

According to the law, Iuza Ugulava was required to declare a conflict of interest (as the owner and Director of the company participating in the tender is his business partner) and to cease participation in the procurement review process.

According to Transparency International Georgia, the victory of Liko-1 Ltd in the tenders and the above-stated circumstances raise doubts about the transparency of the process and the impartial approach to the organizations. We call on the Anti-Corruption Agency of the State Security Service to study the legality of the victory of “Liko-1” Ltd in the tenders of Kutaisi City Hall.