
TV: MoD Unveils Controversial Fund’s Spending
The Georgian Ministry of Defense (MoD) spent a total of some GEL 35 million (approximately USD 29 million) from the Army Development Fund in 2004-2006, the Rustavi 2 television station reported on April 4. According to this report the MoD has already unveiled the spending of this fund.
The Army Development Fund, as well as Law Enforcement Development Fund, was set up after the 2003 Rose Revolution to, as the authorities put it, collect donations from “patriotic businessmen” to boost the capabilities of the country”s armed forces and law enforcement agencies. The authorities were often criticized for keeping these funds non-transparent for the public. The authorities claim that these funds are currently in the process of liquidation.
Georgian Defense Minister Irakli Okruashvili met with parliamentarians from the so-called “group of confidence” on April 4 to discuss spending from this fund. This group, which consists of four parliamentarians from the ruling National Movement party, is in charge of monitoring the government”s spending related to top secret projects.
“The fund”s activities were very effective… All the procurements were made at minimal prices. The Confidence Group has no complaints towards the activities of the fund,” MP Givi Targamadze, the Chairman of the Parliamentary Committee for Defense and Security and member of Confidence Group, said after the meeting with Defense Minister Okruashvili.
Defense Minister Okruashvili said that the fund”s finances were not used to purchase new armament. He said that a major part of the fund was spent for army infrastructure development.
Up to GEL 9 million (approximately USD 4.9 million) was spent from the fund to construct a new military base in Senaki, western Georgia, which was described by the MoD as a NATO-standard military base.
Defense Minister Okruashvili denied allegations that the fund was replenished through payments made by former governmental officials from ex-President Shevardnadze”s administration who were arrested after the Rose Revolution, but released as a result of highly-controversial plea bargaining procedures.
“There was not a single payment of this kind made in this fund,” Okruashvili said on April 4.
This announcement by Okruashvili comes in conflict with the statement made by Vice-Speaker of the Parliament Mikhail Machavariani of the ruling National Movement party, who said in an interview with the weekly program “Droeba” (Times) aired by the Tbilisi-based Imedi TV on April 2, that the fund was basically replenished by money received from ex-officials.
This post is also available in: ქართული (Georgian) Русский (Russian)