The State Audit Office of Georgia has studied the situation of commercial sector of timber industry. In particular, issuance of special logging license, formation of license terms and conditions and the establishment of state control over the license area.
The most important component of the commercial timber resource extraction is a Special License of Timber Production that is issued in an open and public auction. Protocol analysis of auctions revealed, that the auctions for Timber Production Special Licenses were held in a non-competitive environment. Therefore, the state benefit from the licenses that were sold in a non-competitive environment is low.
Timber Production Special License document does not include terms and conditions. Along with the uncertain license conditions, the frequent forest-related legislation amendments in 2008 – 2012, significantly changed laws related to license conditions that lead to impression that some changes were adjusted to private companies. After obtaining timber production license, the Licensee prepares the forest management plan. Audit revealed, that the forest management plans do not design specific measures for forest care, protection, and restoration.
Despite of the fact that the state control over the license area improved, control does not carry preventive nature. The risk assessment is not conducted, based on which selected license holders should be annually inspected. In addition, controlling body has no mechanisms, to temporarily suspend activities of licensees to avoid repeated violations.
Based on above mentioned the State Audit Office issued recommendations, consideration of which will significantly improve the current situation.
