State Audit Office of Georgia performed compliance and financial audit of the Ministry of Internal Affairs of Georgia during 2011 and 2012 years. As a result of the audit, violation facts of the “Law on State Procurement” and regulations were revealed.
Certain procurement from private companies was implemented by the way of bid analysis, and the reason for that, as was said, was the urgent necessity of the procurement, when in reality there was no such urgent necessity.
Particularly, in November 2011, the Ministry of Internal Affairs bought 5,000 IPads by 2,775,000 GEL from Ltd. “Algorithm” by the way of bid analysis, and also Ltd. “Algorithm” won the tender in January, 2012. In this tender, the Ltd. “Algorithm” was the only participant, as a result of which, the Ministry bought 2,000 IPads by 1,100,000 GEL. Ltd. “Algorithm” made 30% discount to the Ministry of Internal Affairs and the total price for IPads was 749,000 GEL.
In July, 2012, the Ministry of Internal Affairs of Georgia also bought vehicle spare parts from the Ltd. “Georgian Post” also through the way of bid analysis. The price for these parts was 981,000 GEL. According to the documents, presented by the Ltd. “Georgia Post”, it became clear that the margin of this purchase was 360, 000 GEL. Other procurements also were revealed during audits, when the margins on the purchased goods were unreasonably high. For example, in September, 2011, speed measuring radars were bought from the Ltd. “Magic Company” by 2,049,900 GEL, where the margin was 551,800 GEL.
Thus, by taking into account these facts, the Ministry of Internal Affairs of Georgia improperly spent 1,660,800 GEL. The State Audit Office will send audit documentation to the law-enforcement bodies for the further consideration.
