Georgia’s National Agency of State Property has been privatizing state-owned enterprises without a predefined plan or clear criteria, raising concerns about transparency, according to a State Audit Office report on the management of state-owned companies.
The audit found that the agency had no established rules for determining which enterprises should be privatized or what grounds should support such decisions. Between 2022 and 2025, the agency offered stakes in nine state-owned enterprises for sale at auction, but only three sales were completed.
In 2022, the state sold 25% and 20% stakes in two enterprises for GEL 87,000 and GEL 154,000, respectively. In 2023, a 60% stake in another company was sold for GEL 197,500. Auctions for the remaining six enterprises failed to attract buyers.
The agency said privatization decisions may be based on companies’ financial performance or interest from potential buyers. However, auditors found insufficient evidence to justify the decisions. The State Audit Office recommends that the agency develop a privatization plan and establish clear criteria to improve transparency and accountability.
