The Georgian Prosecutor's Office has charged the former Director General of the Partnership Fund, Giorgi Bachiashvili, with failure to perform official duties.
According to the Prosecutor's Office, Giorgi Bachiashvili was charged under Article 220¹, Part 2 of the Criminal Code of Georgia, which implies failure to perform or improper performance of official duties by a person with special authority, resulting in severe consequences.
"The investigation established that in May 2013, on the initiative of Bidzina Ivanishvili, GCF Partners LLC - also known as the Partnership Fund - was established to implement significant investment projects in Georgia. From the day of establishment until May 2019, Giorgi Bachiashvili held the position of General Director of the fund and subsequently served as the Chairman of the fund's Advisory Board until 2023.
In November 2014, the Partnership Fund signed a written agreement with GCF Luxembourg, taking responsibility for the proper and effective management of the company's investments in Georgia and existing assets.
In the same year, GCF Luxembourg, on Giorgi Bachiashvili's initiative, acquired shares in Mtkvari HPP LLC, which owned a hydropower plant project to be built on the Mtkvari River in Akhaltsikhe. According to initial calculations, Mtkvari HPP represented a profitable investment project, with construction costs estimated at approximately 140 million USD, and the hydropower plant was scheduled to become operational in 2019.
Prior to the acquisition of the Mtkvari HPP project, expertise and relevant studies were conducted at the request of the Partnership Fund, which revealed numerous significant risks and threats. These identified risks were mandatory to be considered both at the start of the hydropower plant construction and during the construction process. Even though Giorgi Bachiashvili, as the General Director of the Co-Investment Fund, was fully responsible for the proper and effective management of "GCF Luxembourg's" investment projects and assets, he improperly performed his assigned duties and neither at the beginning of the HPP construction nor in the subsequent period, did not take appropriate and necessary measures to eliminate the identified risks or threats related to the HPP construction process.
As a result, the investment volume and operational period of the Mtkvari HPP increased disproportionately, which negatively affected the project's profitability and its investment value increased by over 100 million USD to 240 million USD. It is noteworthy that despite the colossal expenses, the HPP has not yet entered operation, consequently significantly damaging the legitimate interests of the investor.
Giorgi Bachiashvili was charged under Article 220¹, Part 2 of the Criminal Code of Georgia, which implies failure to perform or improper performance of official duties by a person with special authority, resulting in severe consequences. The presented charge carries a punishment of imprisonment from 2 to 5 years."We would also like to inform the public that the investigative unit of the General Prosecutor's Office of Georgia continues to study the facts of illegal appropriation and legalization of illegal income within the ongoing investigation, including through appeals to competent authorities of foreign states within the framework of relevant legal assistance. At the initial stage of the investigation, the prosecutor's office appealed to the competent authorities of the Swiss Confederation with a motion for legal assistance, requesting the transfer of important evidence from BANK JULIUS BAER in Switzerland, including information related to Giorgi Bachiashvili's bank accounts. We will periodically inform the public about the progress and results of the investigation," - reads the statement released by the prosecutor's office.
According to the Prosecutor's Office of Georgia, the presented charge carries imprisonment from 2 to 5 years as a form and measure of punishment.
