In the shadowed corridors of Georgian politics, where power and wealth often intertwine, the story of Viktor Japaridze, a man dubbed the “Feudal Lord” of Mestia, unfolds with the intrigue of a political drama. This investigation delves deep into how a seemingly silent parliamentarian amassed a fortune, leveraging his position and influence to build an empire that spans far beyond the mountainous region of Svaneti.
Viktor Japaridze’s Political Journey and Rise to Power
Viktor Japaridze’s journey into the upper echelons of Georgian politics began in the early 2000s, but his story is rooted in the complex political and social landscape of post-Soviet Georgia. Born in Mestia in 1966, Japaridze graduated in 1992 from the Sukhumi branch of Ivane Javakhishvili Tbilisi State University, specializing in Production Economics and Management. His early career saw him in various managerial roles, including a brief stint at the Marneuli Industrial Complex, where he worked before moving into politics.
By 2004, Japaridze had secured the position of majoritarian deputy for Mestia, marking the beginning of his political career. His ascent was facilitated by Levan Pirveli, the then majoritarian deputy, who brought Japaridze into parliament as part of the “Independent Majoritarians” faction. Japaridze’s political journey was marked by alliances with various factions, but it wasn’t until he joined the ruling “Georgian Dream” coalition in 2012 that his influence truly began to grow.
During his tenure in parliament, Japaridze became known as a “silent deputy,” rarely participating in debates or proposing legislation. According to records, he participated in 13,121 votes and opposed only 51 bills, most of which were initiatives presented by opposition parties or the President of Georgia. Transparency International Georgia has repeatedly labeled him as a “silent deputy” due to his lack of legislative activity. Japaridze himself has publicly dismissed the importance of introducing laws, claiming it to be the government’s responsibility rather than a parliamentarian’s.
However, this silence concealed a much more calculated and ambitious plan. In 2022, after years of relative inactivity, Japaridze became notably more engaged, purchasing a 52% stake in the pro-government television station “Post TV” for 520,000 GEL, securing control over the station. Soon after, he joined the “People’s Power” party, a subsidiary of “Georgian Dream,” and emerged as one of the authors of the controversial “Russian Law.” This law, formally known as the “Law on Transparency of Foreign Influence,” purported to demand financial transparency from civil society and the media but was widely criticized for its true aim—eliminating dissent against the government.
The Accumulation of Wealth: A Deep Dive into Japaridze’s Assets
Japaridze’s wealth is a testament to his political acumen and strategic maneuvering. Over the years, he quietly expanded his assets, which today include extensive real estate holdings, business enterprises, and lucrative government contracts. His wealth includes apartments, land, gas stations, various companies, hotels, hydroelectric plants, and other properties. Notably, much of this wealth is registered under the names of his family members, making it challenging to trace the full extent of his fortune.
One of Japaridze’s most prominent ventures is the “Posta” hotel in Mestia, a luxurious establishment that stands as a symbol of his success. The hotel, named after the old Soviet post office building it replaced, underwent significant expansion, partly funded by government programs and loans from Bidzina Ivanishvili’s “Cartu Bank.” The expansion of the hotel involved acquiring neighboring lands under contentious circumstances, including pressuring a businessman, Gogi Gulordava, to sell a stake in LLC “All Season,” a company that owned adjacent land, to Japaridze’s wife, Natia Khvistani.
The story of “Posta” is emblematic of Japaridze’s approach to business—strategic, aggressive, and often opaque. In 2012, the Mestia Municipality seized the building due to unpaid renovation costs, but after Japaridze joined “Georgian Dream,” the building’s fortunes reversed. The seizure was lifted, and “Cartu Bank” granted substantial loans to finance the hotel’s expansion. In 2017, under the “Produce in Georgia” program, Japaridze’s business received over 528,150 GEL in funding for further expansion. The hotel now includes a 33-room wing, complete with a swimming pool, sauna, and other luxury amenities, financed partly by the European Bank for Reconstruction and Development (EBRD).
Japaridze’s declaration of wealth has been scrutinized multiple times, revealing significant discrepancies and undeclared income. For example, his declaration in 2023, which reflects the situation in 2022, omitted substantial assets and income, including the sale of his wife’s share in LLC “All Season” for 800,000 GEL and unreported profits from various businesses. Despite being a co-author of the “transparency” law, Japaridze has consistently failed to fully disclose his wealth, raising serious ethical and legal concerns.
The Web of Influence and Power in Svaneti
Japaridze’s influence in his native region of Svaneti is so pervasive that locals often refer to him as the “new generation feudal lord.” His power extends to the local government, where many officials are his relatives. For instance, the first deputy mayor of Mestia, Neli Naveriani, is the wife of Japaridze’s cousin, while the chairman of the municipal assembly, Maizer Japaridze, is his cousin as well. The mayor’s advisor, Levan Kikvidze, is Japaridze’s nephew. This network of familial ties ensures that Japaridze’s influence in Svaneti remains unchallenged.
His influence is maintained through a combination of financial support to locals, strategic business dealings, and leveraging his political position. Japaridze’s family-owned companies have secured millions of GEL in government contracts, often under questionable circumstances. For instance, LLC “Expert House,” a company founded by Japaridze’s son, Otar, has been involved in supervising several government projects, many of which have faced significant issues. Despite these problems, the company continues to win contracts, often directly and without competition.
In addition to his children, Japaridze’s brother-in-law, Aleko Khvistani, has also benefited from state procurement. Khvistani’s company, LLC “Electro Montage Service,” has won 18 state tenders worth 21 million GEL, despite concerns over the company’s performance.
Public Perception and the Future of Georgian Politics
In Mestia, Japaridze is a figure both revered and feared. While some locals appreciate the financial support he provides, others view it as a means to secure their loyalty and votes. His generosity, they say, comes with strings attached—strings that bind them to his will during election time. Despite his controversial actions, Japaridze remains a powerful figure in Georgian politics, representing a broader trend of wealthy deputies who use their positions to quietly amass wealth.
As we explore the corridors of power in Georgian politics, Viktor Japaridze’s story is a stark reminder of how wealth and influence can be accumulated in the shadows. His rise from a local businessman to a powerful parliamentarian reflects the complex interplay of politics, business, and personal ambition in Georgia today. And as the next parliamentary elections loom, the question remains: how many more millionaire deputies like Japaridze will quietly continue to amass their fortunes, shielded by the very laws they helped to create?
This publication was funded by the European Union. Its contents are the sole responsibility of iFact and do not necessarily reflect the views of the European Union
