Georgia’s State Audit Office has opened a review into whether the Tbilisi School of Political Studies received foreign funding without the government consent required under the country’s Law on Grants. The action follows claims by Georgian Dream officials and pro-government media that the Council of Europe may have funded a seminar in a way that avoided the law. No breach has been established. The review concerns a long-running seminar project, the Council of Europe’s local office and the legal distinction between a grant and payments made directly for services or event costs.
Review follows wider restrictions on foreign funding
Since 2024, Georgian Dream has restricted access to foreign funding for media, civil society organisations and individuals through a series of laws, including Georgia’s version of the Foreign Agents Registration Act and an amended Law on Grants. Certain violations can carry criminal penalties, including up to five years in prison for failing to register as a foreign agent. The Anti-Corruption Bureau, whose functions in enforcing restrictive foreign funding laws were later absorbed by the State Audit Office, had inspected dozens of civil society organisations, but those cases did not become criminal prosecutions. Local and international watchdogs have criticised what they call vague and arbitrary rules, saying they have encouraged organisations to close or reduce their work.
| Fact | Detail |
|---|---|
| Review opened | September 21 |
| Organisation under review | Tbilisi School of Political Studies |
| Seminar location | Bakhmaro, a mountain resort in western Georgia |
| Project running since | 1999 |
| Potential grant-law penalty | Up to six years in prison |
| Potential FARA penalty | Up to five years in prison |
Georgian law allows an arrangement to be treated as a grant if it is formally structured as a service contract but constitutes a grant in substance.
WHY IT MATTERS
For organisations working with public or foreign funding, the case highlights the importance of the legal substance of an arrangement, not only its label. Direct payment for accommodation, transport, meals or speakers may be presented as a service arrangement, while authorities may examine whether it functions as a grant. The State Audit Office has not announced a finding in this case, so the funding structure and any legal consequences remain unresolved.
Reported from civil.ge, 2026-09-21. The Tender Wire is published by Otnox.
