Transparency International Georgia (TI Georgia) explored the 2024 parliamentary election campaign funding for 8 electoral subjects. The survey once again revealed “Georgian Dream’s” stark financial advantage compared to other parties.
This is particularly noticeable in pre-election expenditures - the ruling party has spent more than all other electoral subjects combined (53%), which was due to the large amount of donations received since the beginning of the year (13.4 million GEL).
Signs of systemic corruption in the ruling party’s fundraising process continue to raise concerns. A significant number of donors receive multi-million public procurement contracts and subsidies while making donations. The Anti-Corruption Bureau shows no interest in such donations, but during the pre-election period, it harasses observer organizations and directly carries out the Prime Minister’s orders, ultimately undermining trust in this institution.
Party Revenues and Expenditures
- During the pre-election period, the 8 electoral subjects subject to the survey received a total income of 18.8 million GEL (public funding and donations) and spent 25.3 million GEL. “Georgian Dream” accounted for 53% (13.3 million GEL) of total expenses.
- Of the total income received by political parties during the pre-election period, 94% (17.7 million GEL) came from donations, while 6% (1 million GEL) came from public funding.
- During the pre-election period, electoral subjects received donations totaling 17.8 million GEL, of which 6 million GEL (34% of all donations) went to “Georgian Dream”, the “Coalition for Change” was second with 5.6 million GEL, and Strong Georgia was third with 5.1 million GEL.
- The situation is different when it comes to the donations received since the beginning of the year - during this period, “Georgian Dream” received more donations than all other parties combined. All parties received a total of 25.3 million GEL, of which “Georgian Dream” received 13.4 million GEL (53%), “Strong Georgia” – 5.4 million GEL (21%), and “Coalition for Change” 5 million GEL (20%).
- Since the beginning of the year, 40% of donors have donated more than the average annual salary in Georgia (17,000 GEL after tax). Such donors account for 84% of all donations received by all parties, indicating the ruling party’s dependence on large donors.
- During the pre-election period, parties spent 17.7 million GEL on advertising, of which 47% (8.3 million GEL) was spent by “Georgian Dream” followed by “Strong Georgia” (4.5 million GEL) and “Coalition for Change” (4.1 million GEL).
High-Risk Political Corruption Donations
- Companies connected with the donors of the ruling party received public procurement contracts worth 684 million GEL from January 1, 2023, to October 17, 2024. In return, these donors contributed 3.1 million GEL to the “Georgian Dream” in 2024.
- Especially noteworthy is the case of “Gza” LLC which received contracts worth 226 million GEL in public procurement in 2023-2024. The company belongs to the “Georgian Dream” donor and the 2024 parliamentary election candidate Giorgi Chkonia. He and his partner – Malkhaz Dumbadze donated 75,000 GEL to the ruling party in 2024, and have donated a total of 621,000 GEL since 2013.
- 32 beneficiaries of the state program “Enterprise Georgia” are donors to “Georgian Dream”, who donated a total of 1.6 million GEL to the ruling party in 2024. Between 2014-2020, they received a total of 7.4 million GEL through this program.
- 51 donors of the “Georgian Dream” received subsidies worth 71 million GEL from state agricultural projects in 2014-2023. In return, they donated 7.7 million GEL to the ruling party during these years; including 2 million GEL from January 1 to October 4, 2024.
- Winemakers Zurab and Alexandre Chkhaidzes’ companies received the largest amount - 16 million GEL. They have donated 320,000 GEL to the “Georgian Dream”.
- “Bolero & Company LLC” and “United Distilleries of Georgia LLC” received subsidies of up to 10 million GEL, whose directors, David Bochorishvili and Irakli Bekauri, have donated 347,000 GEL to the ruling party. The owner of these two companies is Vakhtang Karichashvili, a business partner of Bidzina Ivanishvili’s cousin, Ucha Mamatsashvili.
- Persons with family or business connections to Bidzina Ivanishvili donated 425,000 GEL to “Georgian Dream” from January 1 to October 4, 2024.
- Over the years, several large groups have been formed among the ruling party’s donors who donate large sums to “Georgian Dream” on the same day for almost every election. On July 10-11, 2024, five “Nova” LLC ownersdonated 282,000 GEL to “Georgian Dream”. Nova received 9.2 million GEL from public procurement in 2023-2024 and has received 1.1 million GEL from the “Enterprise Georgia” program. On July 4 and 12, 13 owners of “Lilo Mall” LLC donated a total of 558,000 GEL to “Georgian Dream”.
Party Oversight
- The Anti-Corruption Bureau’s September 24, 2024 decision against Transparency International - Georgia and its Executive Director Eka Gigauri, which designating both as persons with “declared electoral goals”, was an unlawful and extremely detrimental decision that has destroyed trust in the Anti-Corruption Bureau as a financial oversight body for the parties.
- The Bureau head’s revocation of his decision at the public request of the Prime Minister further strengthens arguments that the Bureau does not make decisions independently from the government.
- Since party oversight became the Anti-Corruption Bureau’s mandate, transparency standards for political finance oversight have been deteriorating daily. The Bureau has not published a pre-election monitoring report, access to party declarations has worsened, and there is still no information about completed or/and ongoing legal proceedings against political parties or their donors.
