Response of Defence Ministry Regarding State Audit Service Conclusion
10 November 2019

On the basis of order N 594 of the Minister of Defence of Georgia Irakli Garibashvili, issued on October 7, 2019, the Ministry of Defence had already undertaken concrete steps towards resolving the issue before the Audit’s conclusion was made.    

Namely, Specialized Inventory Valuation Committee was created on the basis of Minister’s order and was tasked to conduct inventory valuation of all assets in the Ministry of Defence civilian office, as well as in the General Staff.  In accordance with the order, mandatory inventory valuation process of every asset has begun which also affects assets that have not been inventoried and evaluated for years. It needs to be mentioned that Audit’s conclusion refers to the 2018 Budget year, but the problem persists for decades.

The inventory valuation of military assets has been problematic since inheritance of soviet military real estate and assets. There were no systemic registrations conducted during the time, inaccuracies were common in paperwork, procedures were faulty and lack of coordination between agencies was evident. 

The action plan elaborated by the Ministry of Defence started process of resolving this issue that was unaddressed and neglected for years. In accordance with the action plan, steps have been taken towards adaptation of electronic program for property accounting that will aid establishment of unified system and will exclude inaccuracies in future accounting.