Former Deputy Minister of Economy detained for abuse of official authority, legalisation of illegal income, says Georgian State Security Service

The Anti-Corruption Agency of the State Security Service of Georgia on Saturday announced the arrest of Romeo Mikautadze, a former Deputy Minister of Economy and Sustainable Development. The arrest follows an investigation into allegations of abuse of official authority and the legalisation of illegal income amounting to millions of GEL.

The Agency noted that Mikautadze held various high-ranking and state and political positions between October 3, 2017, and February 9, 2024.

The ongoing investigation has so far revealed that Mikautadze illicitly leveraged his official influence, connections, and experience for personal gain. He is accused of granting unlawful advantages to various individuals within the energy sector, specifically related to hydropower plants. In exchange for this assistance, Mikautadze purportedly received shares in these energy companies, which he secretly owned while officially registering them in the names of trusted proxies. This illegal activity is said to have generated a significant amount of income for him.

Additionally, Mikautadze is accused of systematically abusing his official authority by securing fake or preferential employment for certain individuals in both public and private institutions, thereby generating material and property benefits.

The investigation suggested that these activities resulted in a dramatic increase in Mikautadze’s family wealth, with millions of GEL in unexplained income that was not disclosed in official declarations.

“To conceal and disguise the origin of this illegal and/or unjustified income, Romeo Mikautadze engaged in activities to hide and mask its true nature, source, location, disposition, movement, ownership rights, and related rights. This was done through registering property under other, fictitious persons, depositing cash into his and his family members’ bank accounts via various individuals, executing fictitious contracts for the purchase or sale of real estate, artificially inflating or deflating property values in contracts, and conducting various financial transactions”, the statement noted.

“For example, it was revealed that a residential apartment in Madrid, Spain, was purchased for 600,000 EUR using the aforementioned illegal and unjustified income. To conceal and disguise the illegal and unjustified origin of this amount, Romeo Mikautadze executed a fictitious purchase agreement for the property registered under a family member’s name, attempting to give the funds a lawful appearance. Furthermore, to hide and disguise the source of particularly large amounts of illegal and/or unjustified assets, Romeo Mikautadze registered two vehicles worth up to one million GEL under trusted individuals for himself and his family”, the statement said.

The investigation remains ongoing. Officials indicate that further details will be revealed as authorities continue to analyse Mikautadze’s financial activities and the scope of his alleged criminal network.