Georgia’s plan to allow self-governing cities to establish Legal Entities under Public Law (LEPLs) is facing sharp criticism from local governance expert Irakli Melashvili, who says the reform risks deepening corruption and expanding bureaucratic payrolls rather than improving decentralization.
Speaking to BM.GE, Melashvili argued that the move reflects “Soviet-style governance” and warned that municipal LEPLs will become tools for hiring political activists and artificially increasing public sector employment. He noted that many existing state LEPLs already operate at a loss and, in his view, have historically been linked to corruption risks, which is why their creation was previously restricted.
Under the proposed changes, self-governing cities - including Tbilisi, Batumi, Kutaisi, Rustavi, and Poti - would be able to create LEPLs responsible for issuing taxi licenses and managing revenue from outdoor advertising. Supporters of the reform say this would give municipalities new revenue sources and align with Georgia’s decentralization agenda.
However, Melashvili argues the reform creates inequality between urban and rural residents, since only self-governing cities - not community municipalities - would receive these powers. He claims this contradicts the European Charter on Local Self-Government and questions why citizens in different municipalities should have access to different services.
