Georgia’s Ruling Party Introduces New Grant Laws

| News, Politics, Georgia

On January 28, the Georgian Dream party initiated a legislative package that will clarify the definition of a grant. According to faction chairman Irakli Kirtskhalia, the amendments define a grant as funds transferred by any person to another person in cash or in kind, which are used or could be used to influence the Georgian government, state institutions, or any part of society.

"As the public is well aware, over the past five years, several attempts have been made in our country to overthrow the government elected by the Georgian people. Both the local radical opposition and foreign-funded so-called NGOs actively participated in these revolutionary processes. Fortunately, the state successfully suppressed all attempts at revolution, largely due to legislative amendments, including, most importantly, the transparency law. Everyone remembers well the resistance of Georgia's foreign detractors to the first version of the Transparency Law, which only required annual financial declarations from foreign-funded NGOs. It was confirmed that both specific foreign donors and their organizations were concealing significant information. Fortunately, Georgian society soon distinguished truth from false propaganda, and the government successfully passed a crucial law," Kirtskhalia stated.

He once again accused foreign foundations (such as USAID, NED, and EED) of funding revolutionary processes in Georgia and noted that Georgia has followed suit with laws "on transparency of foreign funding" adopted by France, Turkey, Serbia, and other countries:

"In the current situation, funding unrest, violence, and revolutionary processes in Georgia from abroad is significantly more difficult. However, in practice, we see that certain mechanisms and methods for circumventing the law still exist, and great efforts are being made to utilize them against our country. This could cost us the peace, tranquility, economic progress, and prosperity we have maintained".

"To prevent anyone from finding an alternative way to finance unrest and violence in Georgia from outside the country in the future," says Irakli Kirtskhalia, Georgian Dream is amending the legislation. According to the package of legislative amendments to the Georgian Law on Grants:

The definition of grants is clarified and established to include funds transferred by any person to any person, in cash or in kind, used or likely to be used with the persuasion or intent to influence the Government of Georgia, state institutions, or any part of society, for activities carried out or to be carried out aimed at shaping, implementing, or changing Georgia's domestic or foreign policy.

Grants also include funds used or likely to be used for activities stemming from the political or public interests, approaches, or attitudes of a foreign government or a foreign political party.

 

  • Such funding may be received by a person only with the prior permission of the Government of Georgia.
  • The law introduces the concept of a foreign legal entity whose activities are substantially related to matters concerning Georgia.
  • It stipulates that such a legal entity will be able to receive grants only with the prior consent of the Georgian government.
  • For example, an organization registered abroad but primarily operating in Georgia will be required to apply to the Georgian government for permission to receive funding. Failure to do so will result in criminal liability.
  • It also clarifies that a grant is defined as the transfer of funds in cash or in kind, in exchange for which the recipient provides technical assistance in the form of technology, specialized knowledge, skills, expertise, services, and/or other assistance.
  • Accordingly, if a foreign entity hires experts in Georgia for monetary compensation, such funds will be considered a grant and will require the prior consent of the government.
  • If a representative office, branch, or division of a non-resident legal entity receives a grant, including from the legal entity of which it is a branch, the prior consent of the Georgian government is also required to receive the grant.
  • Receiving a grant without such consent will entail administrative liability – a fine in the amount of double the amount of the illegally received grant.

 

 

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