State Audit Office of Georgia published a report, which reveals that the Department of Defense has made improper expenditures of millions of lari in the previous years.
Namely, according to the submitted documents, the important project should be implemented to study the possibility of importing and manufacturing certain equipment.
In particular, Delta and one of the partner non-resident companies have set up a joint venture. Under the agreement with the Ministry, the enterprise had to obtain a permit for unlimited production of certain types of equipment.
It turns out that under the contract worth 2,000,000 EUR (1,757,785 GEL was paid in advance by the Ministry in 2012), the company purchased 20 units of equipment from a non-resident company for further modification of the company. However, Delta keeps the equipment in the warehouse up to now.
Under the same project, Delta transferred 4,568,178 GEL to a partner non-resident company to set up a joint venture and explore the possibility of producing equipment.
The report reads that Delta failed to provide any documentation which confirmed that relevant activities had been conducted.
“A total of 8,346,963 GEL was spent on the project, which is likely to be an unreasonable expense, as the goal of the project is not reached. The purpose of the assets and received services is unclear. The issue was sent to the Law Enforcement Agency by the Audit Service in 2014,” the audit report reads.
