Home / Economy / Expert’s Opinion: Kutaisi City Hall May Have Embezzled 1 643 197 GEL

Expert’s Opinion: Kutaisi City Hall May Have Embezzled 1 643 197 GEL

The Kutaisi Today has published a conclusion by Levan Samkharauli Forensic Bureau, under which the Kutaisi municipal budget spent over 1.6 million GEL on arranging social residential facility without substantiation, when Shota Murghulia was Kutaisi Mayor.

As a result, huge financial loss was inflicted to Kutaisi City Hall. The issue is of remaking about 40 facilities at Nikea Street into social residential buildings.
On July 11, 2016 LLC Sano won the contest announced by Kutaisi City Hall for remaking the building of LLC Medical Institute Kutaisi into multi-apartment residential house.

According to the decree N628 passed by Kutaisi Mayor on March 9, 2017, the building reconstructed by SANO with 5035.88 square meter space was accepted. Under the act of acceptance and delivery, Sano delivered 2506.11 square meter residential spaces. The price per square meter constituted 989.4393 GEL and total value made up 2 473 598.25 GEL.
According to Levan Samkharauli Forensic Bureau, the mentioned building cannot satisfy residential purposes, where an ordinary family would live and the actual space delivered in reality does not comply with the space indicated in the act of delivery and acceptance.

According to the act of delivery and acceptance, total space delivered made up 4 636.6 square meter, where payable space is only 4378.61 square meters. The expertise identified that actually delivered space made up 4 037.78 square meters, down 341.22 square meters. Moreover, in the social residential building the price of a square meter makes up 540 GEL and the actual price of the social residential building is 2 180 401.2 GEL, while Kutaisi City hall paid 3 823 598.25 GEL to LLC Sano.