Group in Georgia exposed for embezzling funds meant for free canteens
Georgia’s State Security Service says its anti-corruption agency has uncovered a group that embezzled funds from free canteen programmes. According to investigators, the group fraudulently misappropriated millions of lari belonging to the state.
Five people have been detained in connection with the case — a company director, managers of four subcontractor firms and one employee.
Authorities say that between 2023 and 2026, 12 contracts were signed between LLC “Aladashvili & Co” and administrations in four Tbilisi districts to provide free meals for socially vulnerable citizens. The total value of the contracts exceeded 26.5 million lari ($9.8m).
Investigators say the company director transferred management of four of the 22 canteens to subcontractors, and that this is where systemic violations began. Between 2024 and 2026, thousands of beneficiaries reportedly received substandard services on a daily basis, indicating that contractual obligations were not fully met.
According to the State Security Service, the companies allegedly falsified delivery and acceptance records, creating fake documentation that allowed them to незаконно appropriate part of the budget funds. Investigators say that out of around 19 million lari ($7m) received, more than 3.5 million lari ($1.3m) was fraudulently misappropriated.
A criminal case has been opened on charges of fraud and aiding fraud. If found guilty, those detained face between six and nine years in prison.
Embezzlement of funds in Georgia
