fbpx
ვინ არის გიორგი ჭყონია

In Georgia, a Business Mogul’s Political Rise Stirs Questions of Influence and Power

Author: Ia Asatiani

Research conducted by: Mariam Kachkachashvili and Eto Midelashvili

In 2024, Georgia will experience its first fully proportional parliamentary election, marking the end of the majoritarian system that has long shaped the country’s political landscape. However, the ruling party, Georgian Dream, found a way to maintain influence by introducing regional “delegate candidates” who would represent specific areas in parliament—mimicking the role of the former majoritarians.

One of these delegate candidates, poised to represent Kobuleti, is businessman Giorgi (Gia) Chkonia. But Chkonia is more than just a candidate; he is a figure whose business dealings and political ties have raised questions about the intersections of wealth, power, and governance in Georgia.

A Businessman with Political Connections

Since 2006, Chkonia has established himself as a businessman managing diverse enterprises, including hotels, restaurants, and cryptocurrency ventures. But his political journey began under Georgia’s former ruling party, the United National Movement (UNM). Chkonia and his business partner made a notable financial contribution to UNM’s satellite organization just before the 2012 elections.

As revealed in interviews, Chkonia was considered a reliable ally of the UNM, particularly in the Adjara region, where his businesses flourished under the patronage of influential politicians like Levan Varshalomidze.

But when the political tides shifted and the Georgian Dream took power, Chkonia demonstrated his adaptability. Between 2016 and 2024, Chkonia, his family, and his business associates donated 1.6 million GEL to the Georgian Dream, cementing his status as a trusted businessman within the ruling party.

His vocal support of the government, particularly in praising Prime Minister Gharibashvili’s stance on avoiding involvement in international conflicts, only strengthened this relationship.

The Influence of Bidzina Ivanishvili

A key figure in Chkonia’s story is Bidzina Ivanishvili, Georgia’s wealthiest man and a former prime minister who continues to wield significant influence behind the scenes. Chkonia’s ties to Ivanishvili are well-documented, with his company, LLC Gza, handling multi-million-dollar contracts related to Ivanishvili’s ambitious dendrological park project. Moreover, Chkonia acquired assets previously linked to Ivanishvili’s companies, suggesting that their relationship goes beyond mere business transactions.

One notable instance occurred in 2020 when Ivanishvili transferred ownership of a controversial development company, LLC Saqvavile, to Chkonia after the media began scrutinizing its illegal construction in Tbilisi’s historic Orbeliani Square. Chkonia’s involvement appeared to be a strategic move to deflect attention from Ivanishvili, as he later sold the company to foreign investors.

LLC Flowerpot

Such deals, along with Chkonia’s acquisition of valuable land near Lisi Lake for a fraction of its market price, underscore the businessman’s unique ability to benefit from his political connections.

Connections with Other Influential Politicians

Chkonia’s ties extend beyond Ivanishvili. His business ventures have included partnerships with figures like former Speaker of Parliament Kakha Kuchava and Archil Khabadze, the former Chairman of the Government of Adjara. These relationships helped Chkonia’s companies secure lucrative government contracts, including 50 state procurement agreements in Adjara during Khabadze’s tenure, totaling 17.4 million GEL.

Another key ally is Tengiz Petridze, the former Deputy Mayor of Batumi, who later became the director of Chkonia’s company, Tower Group. Petridze’s involvement in state tenders during his time at Batumi City Hall, where Chkonia’s companies were frequent winners, further illustrates the intertwined nature of Chkonia’s business and political success.

Giorgi Chkonia - Tower Group LLC

Controversial Tenders and State Support

The relationship between Chkonia and the Georgian government can be described as one of mutual benefit. Since 2011, Chkonia’s companies have won 457 million GEL in government contracts, with 73 percent of these tenders secured without competition. In one instance, a 2024 tender for shoreline protection in Adjara required highly specific expertise—conditions that only Chkonia’s company could meet. Critics argue that such tenders are tailored to favor Georgian Dream’s preferred businesses, raising concerns about transparency and fairness.

Giorgi Chkonia Procurements

Moreover, Chkonia’s hotels in Kobuleti, Chateau Kvirike and Chalet Kvirike, benefited from the government’s Produce in Georgia program, receiving over 5 million GEL in state funding. The state also built a road to his mountain complex, a project prioritized over local infrastructure needs. These projects, while economically successful, have drawn criticism for their heavy reliance on public resources.

The Delegate for Kobuleti: A Strategic Appointment

As Georgian Dream’s chosen delegate for Kobuleti, Chkonia’s wealth and influence seem to be key factors in his appointment. Opposition members argue that Chkonia’s role is less about policy and more about using his financial resources to secure votes for the ruling party. His donations to Georgian Dream and his involvement in state-sponsored projects reflect a reciprocal relationship where Chkonia’s business interests align with the party’s political goals.

Critics have also raised concerns about potential vote-buying tactics. In August 2024, Chkonia reportedly provided water as a “gift” to residents of Ochkhamuri, a village that had recently protested water shortages. While this act of generosity was framed as community support, it also raises questions about the influence of wealth in shaping voter behavior.

Property of Giorgi Chkonia

A Symbiotic Relationship

The story of Giorgi Chkonia exemplifies the close relationship between business and politics in Georgia. His ability to navigate shifting political landscapes, form alliances with powerful figures, and secure government contracts highlights how wealth and influence can shape public life. As Chkonia prepares to enter parliament as a delegate, his rise raises important questions about the future of Georgia’s democracy and the role that business elites will play in it.

For voters in Kobuleti and beyond, the appointment of delegates like Chkonia blurs the line between business and governance, underscoring the challenges that Georgia faces as it moves toward a more proportional electoral system. Whether Chkonia’s success will translate into meaningful political contributions remains to be seen, but his story serves as a reminder of the enduring power of money in Georgian politics.

Comments
Total
0
Shares
Next
Georgia’s Electoral Reforms: Challenges Ahead of Crucial Elections
არჩევნები საქართველოში 2024

Georgia’s Electoral Reforms: Challenges Ahead of Crucial Elections

By Eto Midelashvili As Georgia heads toward its 2024 parliamentary elections,

თვალი მიადევნეთ სხვა ამბებსაც
Total
0
Share