Magticom LLC appealed to the head of the anti-corruption bureau with the request to study the actions of Kakha Bekauri

To: Mr. Razhden Kuprashvili

      Head, LEPL Anti-corruption Bureau 

Mr. Kuprashvili, 

As you are aware, the Independent Commission set up by Order №72, 08 December 2023 of the Head of LEPL Anti-corruption Bureau met on 12 January 2024 to select officials to be monitored in 2024, selecting officials for monitoring purposes. The list includes, having regard to high public interest and high corruption risk factors, Kakhi Bekauri, the Chairman of Georgian National Communications Commission.

With this letter, we’d like to draw your attention to a number of facts set forth below that we believe could fall within the sphere of your interests and, at the same time, require adequate response within the scope of your official competence. In particular:

1. By Georgian National Communications Commission (hereinafter – the Commission) Decision #455/22, 2 August 2018, Media Academy, a non-entrepreneurial (non-commercial) legal entity, was founded to develop and promote media literacy in Georgia. Under the Media Academy Charter (Article 5), the Director of the Academy manages the activities of and represents the Academy and is solely appointed to and removed from office by the Chairman of Georgian National Communications Commission. The costs of Media Academy are quite substantial, amounting to millions annually, though the breakdown of these costs is not public or transparent. In parallel with the invisibility of the specific budget of Medica Academy and its detailed expenditure, it should be noted that in 2020, Eka Beridze (a wife to the Commission Chairman) was involved in specific activities of the said legal entity but as the expenditure part of the entity is non-public for some reason, the specific terms of cooperation between these persons, including the terms of payment, are unknown. Besides, spending the Commission money on promoting his wife with the Learn from the Best slogan seems to cause no discomfort whatsoever to the Commission Chairman.

Receipt acknowledged. Ketevan Shashiashvili [signature] 29.01.2024

Magticom LLC / Identification Number: 2048766067 / Politkovskaya Str, Tbilisi 0186, Georgia. Tel: (+995 32) 217 17 17, (+995 32) 217 17 77 / Email: office@magticom.ge / www.magticom.ge

2. According to the Financial Disclosure filed by Kakhi Bekauri for 2022, he is the Director and a 100% shareholder of Skhva Arkhi Ltd (a limited liability company). The scope of business of the Company is unknown to us though judging from the name of the company [The Other Channel or Another Channel in English], it may well fall within the Commission’s scope of regulation.

3. According to the Financial Disclosure filed by Kakhi Bekauri for 2022, he is a 33,33% shareholder in Ori Nabiji Ltd (a limited liability company). According to the extract from (records of) the Business Register, he has not transferred his share for management to any other person, and in 2022, he received 14 820 782,23 in dividends from the company.

Given below is what the Law of Georgia on Fight against Corruption (formerly called Law of Georgia on Conflict of Interests and Corruption in Public Service) regarding the facts described above:

Law of Georgia on Fight against Corruption

Article 2.1 – “For the purposes of this Law, the term 'official' includes the following persons: …

(r) a member ofGeorgian National Communications Commission.” 

“Article 3

1. 'Corruption in public service' is the abuse of the position or the opportunities related to the position by a public servant in order to obtain property or other assets prohibited by law, and the transfer of these assets to him/her, or support in obtaining and legalizing them.

2. 'Corruption offence' is an action which contains the signs of corruption and for which disciplinary, administrative or criminal liability is provided for by law. 3. 'Conflict of interest in public service' is the conflict of property or other private interests of a public servant with the interests of state service.

3. 'Conflict of interest in a public institution' is the conflict of property or other private interests of a public servant with the interests of a public institution.

 Article 4
For the purposes of this Law:

a) 'family member' is a person's spouse, minor child, stepchild, or a person permanently residing with him/her.”

 “Article 10

1. A public servant may not, based on his/her personal interests: …
d) enter into a property transaction with his/her family member or close relative as a public servant.

2. Any transaction concluded in violation of paragraph 1 of this article shall be void.”

“Article 13

1. The issues of incompatibility of duties are regulated by the Constitution of Georgia, organic law, this Law and other normative acts. 
2. No public servant other than the President of Georgia, a member of Parliament of Georgia or a member of Government of Georgia may perform any paid work (except for scientific, pedagogical or creative activities or activities in the Reserve of Georgian Defense Forces, activities performed by a person employed within the system of the Ministry of Defense of Georgia in a medical or IT field or in a state-owned enterprise or enterprise founded with a state share participation in an aviation field, or activities performed as part of any office held in an international organization abroad to accomplish the objectives of an international partnership and/or peace-keeping operation). No public servant may hold any other position in any public institution (other than the Reserve of Georgian Defense Forces) or legal entity under private law, or be a member of a representative body of any level, or perform any paid work or hold any position in a body or institution of another country. A public servant may perform combined paid work only within the system of the same public institution. 
3. A public servant may not receive income from an organization that is under his/her official supervision. 
5. A public servant may not hold a position in any enterprise. 
6. A public servant shall, for the term of his/her office, under a trust agreement, transfer to other persons for management a capital share (block of stocks) of an enterprise of the business entity owned by him/her, as determined by the legislation of Georgia. 
7. A public servant may not be a permanent head of a business entity, or a member of a controlling, a supervisory or an auditing body. 
8. Public servants may not carry out entrepreneurial activities. Public servants may only hold stocks or a share in an enterprise. 
11. An official or his/her family member may not hold a position or perform any work in an enterprise registered in Georgia, the control of entrepreneurial activities of which falls within the powers of this official or his/her office. 
12. An official or his/her family member may not hold stocks or equity share in an enterprise, the control of the activities of which falls within the powers of this official or his/her office. 
14. An official or his/her family member shall resign from an incompatible position or terminate incompatible activities within 10 days after the appointment of this official, unless otherwise provided for by the Constitution of Georgia or by law. 
16. Unless otherwise provided for by the Constitution of Georgia and the organic law, an official shall be dismissed if: 
a) he/she or a member of his/her family violates the incompatibility provisions under this Law; 
b) it is confirmed by a court decision that he/she owns illegal and/or unsubstantiated property.”

Article 13⁴

2. A public servant shall:
a) pay attention to any existing or possible conflict of interest;
b) take measures to prevent any conflict of interest;
c) declare any conflict of interest before being appointed or elected to the respective position or after being appointed or elected as soon as he/she becomes aware of that fact.

Against this background, we are confident that the law will actually be accorded the force of law and that your response will follow.

Besides, as a matter of fact, the Commission is presently headed by a person who is paid the annual salary of 202 734 for the performance of this function, whereas the dividends he received in just 2022 from business (as a result of direct shareholding) amounted to 14 820 782,23 . 

Whether Mr. Bekauri has abused his status and power as the Chairman of the Commission for his personal and family welfare requires investigation. You have a mandate to check, among other things, the funds transferred from Media Academy to the bank accounts of Mrs. Eka Beridze, a wife to Mr. Bekauri. 

We call on you to thoroughly investigate the facts described in this letter.

Respectfully,

Andria Zodelava  [signature, seal]
Deputy General Director