Statement of Defence Ministry
2 July 2018

Information spread by some media channels about the procurements carried out by the Ministry of Defence of Georgia is aimed at misinforming the public and needs some clarification. Ltd Margio has been participating in electronic, open tenders declared by the Defence Ministry since 2013. In order to ensure high level of transparency of tender procedures, the identity of participating companies in open electronic tenders is not disclosed. Ministry of Defence of Georgia has no information about previous activities of the companies and their founders participating in open tenders. The identity of tender winners is revealed only after completion of electronic secret procedures. According to the Georgian legislation, each company that meets the requirements of the legislation on State Procurements has the right to take part in open electronic tender. The current law on procurement does not enable the state agency to impose any restrictions on a company participating in the tender, or to inquire about criminal record or previous life/activities of the director/founder of the company. In addition, Ltd Margio does not have the right to take part in secret procurements. Considering the obligation to protect the state security to maximum extent, the company needs special permission to carry out such type of procurement according to the article 19 of Law on State Security and as far as Ltd Margio does not have such permission, it would not have been able to take part in such kinds of procurements.

As to the assertion that Ltd Margio provides the Defence Ministry with computer equipment is false. We would like to underline that Defence Ministry purchased only a video card for one computer on April, 2016, before appointment of Levan Izoria as Defence Minister and total amount of procurement was 3200 GEL. Hereby, we would like to state that each computer is regularly checked and controlled considering all safety rules before and after exploitation.

As to participation of another company Ltd Global Trade Group in tenders of the Defence Ministry, it has only carried out one supply of medical needles in November 2017 and the sum of procurement amounted 14, 981 Gel.

Ministry of Defence of Georgia strictly observes the Georgian legislation and if amendments will be made to the law on procurements, the state agency will continue to comply with its requirements likewise.