Amendments to Georgia’s law on grants passed in first reading

Amendments to Georgia’s law on grants

The Georgian Parliament’s Legal Affairs Committee has approved in the first reading a bill initiated by the ruling Georgian Dream party, which would require government approval — or that of an authorized representative — for receiving foreign grants. The proposed changes will be introduced into the country’s Law on Grants.

At the parliamentary session, Georgian Dream MP Archil Gorduladze stressed that if the purpose of a grant is altered or the funds are misused after government approval has been given, this will entail legal liability.

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Gorduladze also outlined a new amendment that would grant the government access not only to the grant agreement but to any document deemed necessary to “discuss the matter”:

“In the second clause, we propose specifying that the government will have additional powers to review not only the [grant] agreement but also any other relevant documents and information in order to issue approval. To that end, we suggest adding a requirement for the grant recipient to submit additional documents as part of the decision-making process.”

The committee also discussed a change that would allow the Anti-Corruption Bureau to review funds received by individuals:

“People may avoid any contact with the government and bypass legal restrictions, so there should be an amendment allowing the Anti-Corruption Bureau to verify funds received by an individual in Georgia if there is suspicion they are a grant requiring government approval. If the funds are indeed identified as a grant, the procedure outlined in the bill will be initiated.”

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Details of amendments to Georgia’s law on grants

Under a draft law initiated by the ruling Georgian Dream government, receiving a foreign grant will now require the approval of the government or an authorized representative. The corresponding amendments will be introduced into the Law on Grants.

According to the changes, the government will have ten days to either approve or reject a grant. Any appeal of the government’s decision will not suspend its effect.

The Anti-Corruption Bureau will oversee enforcement. Accepting a grant “without authorization” will result in a fine amounting to twice the value of the grant received.