The Georgian Parliament has adopted amendments to the Law on Grants in the first reading (82 in favor, 10 against – Note).
Elchi.az reports that Archil Gorduladze, Chairman of the Legal Affairs Committee of the Parliament, stated that the main purpose of the project is to ensure the protection of the country’s sovereignty. According to the amendment, organizations registered abroad, but whose main activity is related to Georgia, must obtain relevant permission from the government before receiving a grant. The same rule will apply to branches of foreign foundations in Georgia.
Archil Gorduladze emphasized that this mainly applies to organizations engaged in financing political activities and does not cover business entities. Unauthorized receipt and use of a grant will be punished with severe sanctions in the legislation.
In particular, funds paid from abroad for lobbying and political activities will entail criminal liability. According to the provision added to the Criminal Code of Georgia, laundering of money through grants for political purposes may result in imprisonment for 9–12 years.
At the same time, violation of the law will result in a fine, community service, or imprisonment for up to 6 years.
The project also establishes new rules for the financial activities of political parties. Persons receiving more than 20% of their income from abroad will not be able to become members of a political party for a period of 8 years. In turn, the State Audit Office will carry out financial control of political parties.
Archil Gorduladze noted that the legislative package also regulates the socio-political activities of business entities: “If a business entity engages in political activities that are not related to its main activity, it will face administrative responsibility for the first time, and criminal responsibility for repeated and subsequent offenses.”