Former Deputy Defense Minister Arrested in High-Profile Embezzlement Case
By Liza Mchedlidze
Monday, July 28, 2025
The State Security Service of Georgia (SSSG) has arrested former Deputy Defense Minister Giorgi Khaindrava, the former head of the Defense Ministry's procurement department, and a relative of ex-Defense Minister Juansher Burchuladze on charges of embezzling more than 1.3 million GEL from the state budget.
The arrests were announced during a July 27 press briefing by Emzar Gagnidze, head of the SSSG's Anti-Corruption Agency. According to investigators, the group orchestrated a fraudulent procurement scheme in 2023 involving inflated purchases of medical equipment.
"The group conducted the procurement of medical equipment without actually carrying out real market research," Gagnidze stated. "As a result, the Georgian Defense Ministry carried out the procurement of medical equipment at a price significantly above market value."
The SSSG said the scheme involved only companies "closely linked" to Burchuladze's relative, who allegedly structured the process to guarantee pre-selected firms would win. Sham transactions and same-day tax documentation were used to conceal the true cost and purpose of the deals.
Gagnidze highlighted that a key figure in the scheme assured the companies of a "guaranteed win," citing influence over senior officials in the ministry.
The suspects now face between 7 and 11 years in prison under Articles 182 (2-a,d) and 182 (3-b) of Georgia's Criminal Code, which cover large-scale embezzlement committed by a group in prior agreement and through abuse of official position.
Although Burchuladze was not directly named, the embezzlement allegedly occurred during his time as defense minister from 2021 to 2024. In February, shortly after his resignation, Mtavari Arkhi reported that the SSSG had begun questioning Khaindrava and procurement head Vladimer Ghudushari, whose initials match those cited in the latest statement.
The case is the latest in a string of corruption probes involving former officials and figures linked to the ruling Georgian Dream party. In June, the SSSG arrested former Deputy Economy Minister Romeo Mikautadze on similar charges.
Parliament is currently considering a new bill aimed at toughening penalties for financial crimes, including broader powers to seize assets from those convicted of corruption.
