Controversy over ‘Downgrading’ Role of State Audit Agency

Levan Choladze, the head of the Chamber of Control, the state audit agency, condemned on February 21 a government proposal to, as he put it, downgrade his agency’s role. Its right to audit the National Bank, Financial Supervisory and Financial Monitoring Services is to be removed.

A comprehensive government-proposed economic package, among many other things, envisages auditing the National Bank and its agencies by an international audit firm instead of the Chamber of Control.

Speaking at a hearing of the parliamentary committee for finances and budget, Choladze complained that the government had failed to act on an earlier commitment to remove the controversial provision in the draft law, which was passed by Parliament on its first hearing on February 19.

Choladze’s position was backed by an MP from the ruling party, Irakli Kovzanadze, who chairs the parliamentary committee for finances and budget. “Mr. Choladze’s arguments are absolutely right,” he said.

Gia Khuroshvili, the government’s parliamentary secretary, defended the proposal at the hearings.

The criticism follows earlier concerns about the economic package. Critics allege that the role of the National Bank would also be downgraded.

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