Georgia’s State Audit Office has identified shortcomings in the management of state-owned enterprises, including delays in profit distribution and incomplete reporting of fiscal risks, during its audit of 2023–2025.
The consolidated report on state-owned enterprises omitted a €35 million investment needed to ensure the safety of the Enguri HPP dam and potential liquidity risks at the Georgian Oil and Gas Corporation. The Finance Ministry also failed to prepare progress reports for 2024 and 2025 on the state enterprise reform.
Auditors found delays in profit distribution decisions and insufficient detail in some companies’ business plans on how budget funds were used. In one case, GEL 1.773 million allocated from the state budget remained unspent, with no official justification for its subsequent use.
The audit also highlighted weak oversight of subsidiaries managed by the National Agency of State Property. Most had recently reported losses despite receiving regular capital contributions, while the agency did not consolidate their financial data. Auditors also found insufficient evidence to assess the justification for privatization decisions, citing a lack of predefined criteria.
