Day: October 31, 2025
Georgian authorities detained former deputy regional development and infrastructure minister Koba Gabunia on charges of abuse of office and searched 20 locations, including the home of former minister Irakli Karseladze.
At an October 30 briefing, Ia Akhalaia, deputy head of the Finance Ministry’s Investigation Service, said Koba Gabunia, former deputy to Irakli Karseladze, instructed subordinates at the ministry-coordinated Municipal Development Fund to approve more than GEL 11 million (approximately USD 4.13 million) in advance payments to Lagi Capital LLC for kindergarten rehabilitation in 2023-24. She said Gabunia acted to “gain an advantage,” and the Lagi Capital LLC management “fraudulently misappropriated” more than GEL 9 million (about USD 3.45 million) from the advances.
Akhalaia noted the Fund granted the advances even though the requests were “unsubstantiated and only partially secured,” and despite the company’s failure in 2023 to spend an earlier advance payment for its “intended purpose.”
Koba Gabunia, who oversaw the Municipal Development Fund, served as deputy to then–Regional Development and Infrastructure Minister Irakli Karseladze from 2021 to 2025. Karseladze served as minister from 2021 to 2025 and resigned on April 24.
Akhalaia also noted the recent arrests of former Municipal Development Fund executive director Davit Tabidze and a program and project manager at the Fund. She stressed that they “fully cooperated” with investigators and were granted bail by a court. She added that executives of Lagi Capital LLC were also arrested in the case.
The investigation involves multiple offenses, including abuse of office, fraud, and money laundering. If convicted, the suspects face nine to twelve years in prison.
“We continue intensive operational and investigative activities with respect to this and similar categories of cases together with the Prosecutor’s Office and the State Security Service of Georgia, to expose other individuals involved in the corruption crimes, bringing criminal liability and maximum prevention of corruption,” Akhalaia added.
According to the media reports, Lagi Capital LLC was owned until 2023 by Aleksandre Amisulashvili, brother-in-law of Georgian Dream MP Irakli Zarkua, and the company participated in state tenders. Zarkua dismissed the allegations as “another shameful fake news.”
The latest detention comes amid Georgian Dream’s declared “uncompromising” anti-corruption drive and a rise in arrests on similar charges of former officials and associates linked to the ruling party. In a recent case, authorities targeted several former high-level officials, including ex–PM Irakli Garibashvili, former State Security Service chief Grigol Liluashvili, and former Prosecutor General Otar Partskhaladze. Authorities said ex-PM Garibashvili “fully cooperated” with the investigation and “admitted to receiving illicit income over the years,” as he was charged with serious money laundering before being released on bail. Two associates of Liluashvili were also arrested.
Also Read:
- 11/09/2025 – Former Defense Minister Burchuladze Arrested on Abuse of Office, Money Laundering Charges
- 04/09/2025 – Georgian Dream Bans Financial Crime Convicts From Leaving Country Until Damages Repaid
- 23/07/2025 – Georgian Dream Resignation Streak: Who Left and Why
- 14/07/2025 – Georgian Dream’s Ex-Officials and Business Associates in Hot Water
- 21/06/2025 – Ex-Deputy Economy Minister Romeo Mikautadze Arrested on Corruption-Related Charges
Georgia’s real gross domestic product (GDP) increased by 6.4% in September 2025 compared to the same month of the previous year, according to data released by the National Statistics Office (Geostat) on October 31.
The growth was mainly driven by manufacturing, transportation and storage, information and communication, and professional, scientific, and technical activities. In contrast, the construction and energy sectors recorded declines.
The European Bank for Reconstruction and Development (EBRD) forecasts Georgia’s GDP to expand by 7% in 2025, before moderating to 5% in 2026. Similarly, the Asian Development Bank (ADB) also revised its 2025 growth forecast upward to 7%, while maintaining its 2026 projection at 5%.
Also Read:
- 27/10/2025 – National Bank Says International Reserves Exceed $5.4 Billion After September Purchase of $100 Million
- 30/09/2025 – Georgia’s GDP Up by 6.6% in August 2025
- 18/09/2025 – Georgia’s GDP Up 7.3% in Q2 2025
- 16/09/2025 – One Person Detained Over Alleged Scheme of Laundering up to $700 Million