Business Corruption

A major improvement can be seen over years regarding the ease of obtaining a government contract; according to the World Bank & IFC Enterprise Surveys 2008, none of the surveyed companies reported giving bribes when obtaining a government contract. This is a significant decrease compared to 2002, when close to half of the surveyed companies reported giving gifts to get a government contract.

According to Global Integrity 2009, companies found guilty of major violations of procurement regulations (i.e. bribery) are blacklisted on the State Procurement Agency’s website. Hence, Global Integrity 2009 evaluates the public procurement framework as ‘strong’. Nonetheless, companies are still recommended to use a specialised public procurement due diligence tool in order to mitigate corruption risks associated with public procurement in Georgia.

See more on public procurement under 'Public Anti-Corruption Initiatives' in the Initiatives section.

Political Corruption

Although the tender system and public procurement have become more transparent, there are still examples of bribery being used to obtain a government contract. 

According to Freedom House 2011, both the deputy healthcare minister and the former deputy minister of education were arrested for abusing their power and participating in passive bribery. In both cases, the officials were said to have influenced the outcomes of public procurement tenders. 

See more on public procurement under 'Public Anti-Corruption Initiatives' in the Initiatives section.

Frequency

World Economic Forum: The Global Competitiveness Report 2011-2012:
- Business executives give the diversion of public funds to companies, individuals, or groups due to corruption a score of 4.5 on a 7-point scale (1 'very common' and 7 'never occurs').

- Business executives give the favouritism of government officials towards well-connected companies and individuals when deciding upon policies and contracts a score of 3.2 on a 7-point scale (1 'always show favouritism' and 7 'never show favouritism').

The World Bank & IFC: Enterprise Surveys 2008:
- In 2008, no companies surveyed expected to give gifts to obtain a government contract.