Transparency International Georgia (TI) studied the issue of Georgia’s political finance in 2020. The main focus was on those 9 political entities that received at least 1% support in the 2020 parliamentary elections. One of them (Girchi) did not submit financial statements, therefore, the findings of the report are mainly based on the analysis of annual financial declarations provided by 8 political entities and other related issues.
The ruling Georgian Dream - Democratic Georgia party had almost half of all parties' total revenues and expenditures (each amounting to about GEL 60 million), which shows an extremely unequal distribution of finances between the parties. Nevertheless, compared to other years, financial inequality has been relatively reduced, which was mainly caused by the fact that several financially strong new political parties appeared in 2020.
97% of the total donations received by the parties were made by individuals and 3% by legal entities. Georgian political parties mainly depend on large donors and the share of small contribution is usually insignificant.
“In 2020, as in other years, the alleged cases of political corruption and the lack of adequate response to them were relevant. As it turned out, the companies connected with the donors of the ruling party had won public tenders worth about GEL 158 million in 2020 and, in return, during the same period, these donors had donated GEL 1.6 million for the benefit of the Georgian Dream - Democratic Georgia. In addition to tenders, the companies of the individuals donating to the ruling party are also recipients of simplified public procurement contracts. In particular, companies, which are directly or indirectly connected to persons who have contributed approximately GEL 2.8 million to the ruling party in 2020, received around GEL 11.7 million from simplified public procurement contracts during the same year”, TI report reads.
