Civil.ge was able to take a look at the Georgian government’s plan for de-oligarchization, the 52-page document entitled “Action Plan for Avoiding the Excessive Influence of Vested Interests in Economic, Political and Public Life in Georgia”.
With the aim of meeting the European Commission’s fifth priority on de-oligarchization in Georgia and the Venice Commission’s legal opinions, including the adoption of a “systemic approach”, the Government of Georgia developed the Action Plan based on legislation and measures in seven different areas, including the fight against corruption, public procurement, competition policy, the judiciary, the fight against money laundering and terrorist financing, the monitoring of the financial activities of political parties, and the media.
In the document, the government says that the implementation of the EU-set priorities is not “an autonomous process” and the Action Plan “represents a part of Georgia’s larger exercise of implementing all 12 priorities.”
Reasons for Creating the Action Plan
In June 2022, the European Commission recommended the candidacy of Ukraine and Moldova, while Georgia was granted the European perspective, along with the 12 priorities to be fulfilled before achieving candidacy. One of the priorities identified by the European Commission was to implement the commitment to ‘de-oligarchisation’ by eliminating the excessive influence of vested interests in economic, political and public life.
The Georgian government had drafted the law in response to the European Commission’s recommendation on de-oligarchization and had transposed the Ukrainian law on de-oligarchization to Georgia, albeit with some changes, such as giving the government the power to draw up the list of oligarchs instead of the President. The Council of Europe’s Venice Commission criticized the draft law and recommended that Georgia shelve the draft law, citing the potential for political abuse and arbitrary application. On September 19, the ruling Georgian Dream party ultimately dropped the bill in the third hearing in the Parliament.
On November 8, 2023 the European Commission recommended Georgia’s candidacy, but among other things, asked the country to improve the current action plan to implement a multi-sectorial, systemic approach to de-oligarchization, in line with Venice Commission recommendations and accompanied by a transparent and inclusive process involving opposition parties and civil society.
On 14 September, during its 68th session, the European Union Integration Commission of Georgia, headed by Prime Minister Irakli Garibashvili, approved the newly drafted De-Oligarchization Action Plan. According to the government, the plan was formulated on the basis of recommendations from the Venice Commission and the European Union.
Fight against Corruption
A significant portion of the Action Plan is describing government’s previous actions and achievements. The document highlights the creation of Georgia’s independent and financially autonomous Anti-Corruption Bureau, emphasizing its accountability to Parliament and an Anti-Corruption Council. The government notes the implementation of eight out of 16 recommendations from the Council of Europe Group of States against Corruption (GRECO), particularly in corruption prevention concerning judges and prosecutors. It acknowledges partial compliance with six recommendations, notably in the context of preventing corruption among Members of Parliament, while admitting that two recommendations remain unfulfilled according to GRECO’s assessment.
According to the document, the Georgian government aims to strengthen its anti-corruption efforts, including coordinating with GRECO, empowering the Anti-Corruption Bureau to issue recommendations, and reinforcing the bureau institutionally. The plan involves establishing a strategic anti-corruption framework, renewing methodological documents, widening asset declaration scopes, ensuring information access, and developing conflict of interest declaration forms. Additionally, the government will assess corruption risks, enhancing response mechanisms for non-compliance. The objective is to fortify the Anti-Corruption Bureau, ensuring transparent and effective measures against corruption, with potential administrative penalties for non-compliance, including in monitoring political parties’ financial activities.
State Procurement
The government is planning enhance the State Procurement Agency’s capabilities. These measures aim to exclude corrupt entities from government contracts, educate stakeholders and the public on the new procurement system, and modernize practices in line with EU standards.
In particular, the Action Plan includes the following steps: launching a completely new public procurement ecosystem and legal framework, including an obligation for contracting authorities to document the results of market research and upload them into the Ge-GP system; planning and managing a campaign to raise public awareness of the ongoing public procurement reforms, including of the de-oligarchization document itself; providing guidelines on the use of anti-corruption tools and safeguarding integrity, as well as guidelines on avoiding conflicts of interest and favoritism. The government also plans to provide training for these guidelines.
Competition Policy
With regard to the competition policy, the government pledges to “continue to harmonize the competition rules with the EU acquis, further empower the National Competition Agency for effective implementation of competition regulations (e.g. effectively break up monopolies), introduce more clarity on competition policy, foster more competition, and strengthen transparency in the field.”
According to the document, in a two-year EU-funded twinning project initiated in 2022, Georgia’s National Competition Agency collaborates with experts from Lithuania and Austria to enhance competition policy. The government says the project aligns with the EU-Georgia Association Agreement, focusing on institutional and human resource capacity building.
Judiciary
As in the other areas, the Action Plan begins with a discussion of the steps already taken in the area of justice. In terms of steps to be taken, the government identifies the need and the plan to ensure the “optimal number” of judges and court staff to deal with cases in a timely and quality manner. In addition, the government intends to facilitate alternative dispute resolution, such as arbitration, to reduce the workload of the courts.
The government aims to strengthen judicial mechanisms by incorporating the approaches of the European Court of Human Rights and to ensure the effective implementation of Parliament’s decisions on EU priority 11. In addition, the government promises to strengthen social security guarantees for judges and to further develop transparency in the judiciary.
According to the Action Plan, increasing public confidence involves raising awareness, combating disinformation and strengthening the institutions of jury trials. The use of electronic means in court proceedings will be promoted, translation services will be improved, and the High School of Justice will be strengthened to provide comprehensive training for “appropriate number of trainees of justice.” The government believes that these measures will facilitate the lifetime appointment of judges.
“Aspects of independence and integrity of the judiciary are covered by parallel processes under EU’s Priority 3, and hence, they are not discussed here,” the Action Plan reads.
Anti Money Laundering Policy
Georgia’s plans to reinforce its Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) framework include Implementation of the 2023-2026 National Strategy and Action Plan for Facilitating the Prevention, Detection and Suppression of Money Laundering and the Financing of Terrorism, as well as the Financing of the Proliferation of Weapons of Mass Destruction.
In addition, the government plans to establishing a beneficial ownership registry, fully implementing the MONEYVAL (The Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism) recommendations, bring legislation and administrative practices in line with the Global Forum’s new EOIR standard, etc.
Monitoring the financial activities of political parties
Perhaps the one of the fewest steps are planned in the area of monitoring the financial activities of political parties. The government plans to prohibit legal persons from making donations to political parties. The Action Plan also provides for a reduction of the cap of annual expenditure for each political party, and the publication of reports on political party expenditure. The publications are to be ensured regularly.
Media
The government first plans to screen and analyze the relevant EU/Council of Europe legislation on media ownership and media ownership transparency, including regarding the Law on Competition and merger control procedures. The Action Plan envisages eliminating identified deficiencies by adopting appropriate legislation and practices.
Also Read:
- 20/09/2023 – Parliament Drops Law On De-Oligarchization
- 14/09/2023 – EU Integration Commission Approves De-Oligarchization Action Plan
- 21/06/2023 – GD Chair Kobakhidze: De-oligarchization Law Adoption Deferred till December
This post is also available in: ქართული (Georgian) Русский (Russian)
