18.Jun .2021 10:00

“Excessive Money” - LEPLs Hold GEL 422 MLN In Commercial Banks

“Excessive Money” - LEPLs Hold GEL 422 MLN In Commercial Banks
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LEPLs under the Government of Georgia have deposits of millions of GEL in commercial banks. According to the Audit Service, in many cases, the accumulation of millions of GEL in excess is done unreasonably.

The Audit Office has surveyed LEPLs, including 75 of organizations hold 111 million GEL on their current bank accounts, GEL 95 million is placed on demand deposits and GEL 216 million on term deposits, for a total of GEL 422 million.

"It is important for the state to finally regulate how to use the revenues of LEPLs more efficiently, as there are quite large sums of money on long-term deposits. At the time when we were looking for funds from other sources, we could have been more active in spending money from these LEPLs on other important projects," said Ekaterine Ghadzadze, Deputy Head of the State Audit Office.

Out of 422 million GEL, the largest sum is held by LEPL “Municipal Development Fund”, as well as “Enterprise Georgia” and “National Bureau of Enforcement”. One of the projects, due to which the remains increased, was the "Business House" project, the construction of which was announced in 2017 by the then Prime Minister Giorgi Kvirikashvili. The Ministry of Economy transferred GEL 82 million to the Municipal Development Fund, but due to the suspension of the project, the funds were placed on the bank deposit.