Expert Connects Illicit Financial Flow of 4 Billion USD from Georgia with Migrated Businessmen and Former High-Ranking Officials

Expert of economics Irakli Lekvinadze believes the illicit financial flow from Georgia is connected with the migration of businessmen and former governmental officials. The report of the Global Financial Integrity (GFI) states the amount of the illicit financial flow from Georgia exceeded 4 billion USD.

“For the last ten years, many businessmen had to flee from Georgia. It is natural that they managed to send their assets abroad through various sources. In addition, the funds, illegally taken by former Georgian governmental officials, might have also impacted on the illicit financial flow. Of course, those people could take some assets from the country without registration. Supposedly, part of those assets return back to Georgia via the companies registered in the off-shore zones; however, big part of them remain abroad,” said Lekvinadze.

He added the illicit flow of 4 billion USD is a huge sum for such a small country like Georgia because in 2000-2008 not more than 8 billion USD investment was made in our country. The expert thinks any financial flow from our country, legal or illegal, - is a loss of chance to accumulate more investments in the country.

According to the report (Illicit Financial Flows from Developing Countries), the total amount of the illicit financial flow from Georgia is from 4.1 to 4.3 billion US Dollar.

GFI researchers used the price balance data of the international trade to assess the resources of the illicit financial flow from Georgia. The research proved that real amount of the illicit financial flow from Georgia in 2000-2008 was ranging from 4,1 to 4, 3 billion USD. Average annual data is 456-474 million USD and relatively Georgia occupied the position between 74 and 87 in the rating of the countries.

According to the data of 2000-2008, the first five countries on the list are: China with 2.18 trillion USD, Russia with 427 billion USD; Mexico with 416 USD, Saudi Arabia with 302 billion USD and Malaysia – 291 billion USD.

Interpresnews