Majority leader announces criminal liability in planned amendments to grant law

Amendments to Georgia’s Law on Grants will introduce criminal liability and make so-called “external lobbying” a criminal offence, the leader of Georgia’s parliamentary majority Irakli Kirtskhalia said on Wednesday following a meeting of the parliamentary majority.

Kirtskhalia added the changes will define what constitutes a grant and establish that receiving certain funds linked to political activity in Georgia will require prior Government approval. He said the revised definition would include money or in-kind support provided with the intention of influencing Georgia’s authorities, public institutions or any segment of society in matters related to domestic or foreign policy.

He added that legal entities registered abroad but operating substantially on issues related to Georgia would also be subject to the new rules, and would need Government consent before receiving grants. Failure to comply could lead to criminal liability, while in some cases administrative fines - amounting to twice the value of the grant received - would apply.

Planned amendments to the Criminal Code would set penalties for violations of the grant regulations, including fines, community service of between 300 and 500 hours, or imprisonment of up to six years. Tougher sanctions are also envisaged for money laundering linked to political activities concerning Georgia, with prison terms of nine to twelve years.

Kirtskhalia said political party officials who unlawfully receive foreign funding could also face criminal responsibility. He stated that the legislative changes are aimed at preventing the financing of unrest or violence in Georgia from abroad.