NGO: Georgian Gov’t Bought Russian Nivas for GEL 3 m in 5 Years

Non-Governmental Organization (NGO) Transparency International (TI) Georgia says the government bought of Georgia bought 136 Russian Nivas („LADA 4x4, 21214”) imported by Global Motors Georgia – GMG in the 2012-2018 for around 3 million GEL.

“State-owned Georgian Post LLC bought the most of Nivas – 50 cars – for GEL 1,151,500. The next largest procurer was the Ministry of Health and Social Protection of Autonomous Republic of Adjara with 31 Nivas for GEL 721,230. The state-owned Georgian Company of United Melioration Systems LLC was the third largest procurer with 30 Nivas for GEL 570,000," the NGO stated.

The NGO underlined that Global Motors Georgia – GMG was the only bidder in all tenders it won, adding the process was not competitive.

Also, TI says that the Global Motors Georgia – GMG offered the lowest price but added the quality should not be neglected.

“The documentation of those tenders that have been won by Global Motors Georgia – GMG, required very short warranty period (only from 6 months to 1 year (or 35 000 km)). In general, in those car tenders, in which Niva does not participate, procurer organizations require longer warranty periods (more than 1 year),” the NGO underlined.

Transparency International Georgia says 6 months or 1 year is quite short warranty period to request for new cars.

“In this case, there are grounded risks of high maintenance costs. This was partly proved true when above-mentioned public institutions have spent up to GEL 200,000 for buying spare parts and repair services for Nivas from the same company Global Motors Georgia – GMG through simplified procurement procedures,” the statement added.

Studio Monitor made a reportage  on political connections of Gocha Rostiashvili – a founder of Global Motors Georgia – GMG. Rostiashvili is a cousin of Shalva Obgaidze - a member of Tbilisi City Assembly.

The NGO stressed that multiply won uncompetitive tenders not only cast a doubt on certain corruption deals and appropriate use of public money, “but it also raise an important question – how rational is to spend public money on purchasing of goods produced in Russia – a country, which illegally occupies our territories?”

TI calls on the Public Procurement Agency to comprehensively study the tenders won by Global Motors Georgia – GMG. It also urges State Audit Office to study effectiveness of spending of public money on purchasing Nivas.

“Specific amendments should be made to Georgian public procurements legislation, which will introduce certain restrictions on purchasing of Russian (occupant country’s) products,” the NGO stressed.

By Thea Morrison