https://civil.ge/archives/700389

The State Security Service of Georgia (SSSG) arrested former Defense Minister Juansher Burchuladze on charges of abuse of office and money laundering involving more than GEL 1.5 million (approximately USD 580,000), following the July arrests of former Defense Ministry officials.

The SSSG’s anti-corruption agency head, Emzar Gagnidze, announced the arrest at a September 11 press briefing, where he also reported the detention of a member of the opposition United National Movement (UNM), Levan Khabeishvili, on bribery charges, and another UNM member, Murtaz Zodelava.

As for the former defense minister, the SSSG official said Burchuladze and his three associates – including his then-deputy Giorgi Khaindrava, the former head of the Defense Ministry’s procurement department, and Burchuladze’s relative, all of whom were arrested in July – manipulated a Ministry procurement deal to inflate the price of an MRI machine from GEL 2.6 million to nearly GEL 3.9 million, causing a loss of more than GEL 1.3 million. Gagnidze added that Burchuladze concealed the origins of large sums of illicit income by purchasing property in Spain and using fictitious contracts. In the July arrests, Burchuladze was not directly named.

“At Juansher Burchuladze’s instruction, to secure profit for himself and V.M. [Burchuladze’s relative], the then-deputy defense minister, G.Kh. [Giorgi Khaindrava], and the then-head of the ministry’s procurement department, V.Gh. [Vladimer Ghudushauri], with the help of the minister’s close relative, V.M., purposefully created a non-competitive environment during the Defense Ministry’s procurement of an MRI machine,” Gagnidze said.

“As a result, through fictitious deals, the real market value of the machine was artificially inflated, and an MRI machine worth GEL 2,606,272 was supplied to Georgia’s Defense Ministry for GEL 3,940,000. The criminal actions caused property damage of GEL 1,333,728 to the Ministry of Defense.”

The SSSG said Burchuladze and his family bought land and a house in Spain’s Malaga province for EUR 544,000 in January 2025, concealing the purchase through a fake sale agreement for another property in Tbilisi’s Tskneti district that the family had not actually sold, as well as through fictitious loans. According to the SSSG, Burchuladze failed to declare the property in his official asset declaration that March.

“Through these methods, Juansher Burchuladze laundered illegal or unjustified income in the particularly large amount of GEL 1,593,212,” the SSSG official said.

The investigation is proceeding under articles of the criminal code of Georgia covering abuse of office and large-scale money laundering, carrying prison terms of nine to twelve years.

The arrest came amid a series of prosecutions and controversies involving former Georgian Dream officials and business associates, as the ruling party intensifies its anti-corruption rhetoric, while critics point to possible internal power struggles and retribution. Georgian Dream recently adopted changes to the criminal code that will bar those convicted of serious financial crimes from leaving the country even after serving prison terms, until they repay damages.