The relevant departments of the Ministry of
Education, Science, Culture and Sport of Georgia have reviewed IDFI's report on
the National Wrestling Federation of Georgia. In this regard we explain and
present our own position regarding the matter:
• Excerpt from IDFI's report: The financial
statements of the Wrestling State Program are not in line with the Ministry's
budget execution reports. E.g. In 2017, only an actual expenditure information
of GEL 782,785.38 was provided, whereas GEL 3,500,000 was allocated for the
State Wrestling Support Program under the Ministry's 2017 budget. The balance
between the funds transferred by the Ministry and the funds returned by the
Ministry is not maintained by the financial documents officially provided by
the Ministry. For example, according to the 2017 documentation, the Ministry
transferred GEL 1,786,835, of which GEL 282,785.38 was actually incurred,
whilst returning GEL 173,001.62, information regarding the remaining GEL
831,048.0 was not provided.
Ministry’s official response: In this
section of the report, IDFI provides inaccurate figures. Specifically, the
approved plan of the State Wrestling Support Program for 2017 was GEL 3 500
000, whilst the adjusted amount was GEL 3 750 000. Out of the adjusted amount,
a total of GEL 3 745 638 was a cash expense. Hence, the actual expense of 2017
amount to GEL 3 504 672, the Fiscal Year 2017 closed Expenses is 214 360 GEL, a
total of 26 605 GEL is returned to the 2018 Budget.
• Excerpt from IDFI's report: Money paid to
referees invited to the Georgian National Championship in Greco-Roman wrestling
in the financial accounts is estimated at 100 GEL per day, whereas, $ 100 per
day was incurred, as stated in contracts and acceptance acts.
Ministry's Response: During the mentioned
period, the issues of financial settlement between the Ministry and the
National Sport Federations were regulated by the decision of the Minister of
Sport and Youth Affairs of Georgia - Decree N180, dated December 19, 2011, on
the spending and settlement of funds allocated for financing sports activities.
According to Article 3, paragraph 6, provides for the remuneration of referees
invited to national competitions must not exceed GEL 100 per day, and
therefore, as mentioned in the report the remuneration did not in fact exceed
GEL 100 per day. However, the federation itself is not restricted to
contracting a referee service that cost more than 100 GEL per day. Therefore,
in order to cover the costs of the service, the government used the 100 GEL per
day allowance, whilst using the federation’s resources to cover the rest.
Consequently, as it was impossible to create separate contracts for the
contracted referees, the government decided to state the entire costs for the
services.
• Excerpt from IDFI report: Out of 63,580
GEL allocated to the administrative team, the largest monetary award (12,980
GEL) was awarded to the Federation's financial adviser for the results shown at
the 2018 European Greco-Roman Wrestling Championship.
Official response: Within the "Sportsmen for promotion of
state program approval" framework of 6 January 2014, the Government Decree
N39, the results achieved in an Olympic or non-Olympic sports are always followed
by the established monetary. The above-mentioned circumstance, indicated by
IDFI, relates to the prize money awarded to the administrative team of the
federation, in accordance to the result of the 2018 European Championship. This
is a case, where the administrative team must receive a monetary prize as well,
a total 10% of the entire prize pool. To ensure the transparency of the
procedure, the funds are transferred to the federation, which is in charge to
distribute the money to the individuals working in the administrative team.
• Excerpt from IDFI report: Ministry of
Finance did not fully submit financial reports of National Wrestling Federation
The Federation has undertaken its
obligations under relevant agreements; avoiding the disclosure of such accounts
indicates the Ministry's unwillingness to disclose certain information and / or
failure to fulfill its obligations under the agreement.
Ministry's Response: This part of the report is completely
incomprehensible and refers to the practice of not knowing the practice of
spending money and funds allocated to fund sports activities approved by the
Minister of Sport and Youth Affairs of Georgia, as indicated in the Decree N180
of December 19, 2011, According to which the financial statements of the Federation
are always (and still are) present. With respect to any funding received from
budgetary allocations, the settlement between the Ministry and the Federation
shall be considered complete when the Federation has provided comprehensive
information / documentation on each expenditure, otherwise, even further
financing of the Federation itself within the framework of the respective
program allocations. It is complicated. Thus, the reference to the failure of
the Federation to fulfill this obligation is completely out of touch with
reality, and the appeal to the "wish to conceal information" is
devoid of any grounds. Public disclosure of information by the Ministry is
always in compliance with the requirements of the General Administrative Code.
• Excerpt from IDFI report: The National
Wrestling Federation has not been subject to the State Audit Office, which
significantly weakens consistent financial control and increases the risk of
corruption.
Ministry's response: The state audit is
conducted annually by the ministry and relevant reports are posted on the state
audit site https://sao.ge/.
In addition to the above, two more
questions raised in the IDFI report must be answered. Specifically, one relates
to the alleged transportation fees of 8276.25 GEL within the city of Tbilisi
(the sports equipment delivery, shipped from Germany), however, the confusion
caused by the report submitted to the relevant paragraphs of the costs of
targeting unspecified reference, because in fact, the sum of money involved was
from Germany to Georgia and the subsequent ground transportation costs, and the
related VAT costs. Thus, any allegation that the said amount was paid only for
the transportation within the city is simply lacking in factual arguments.
The second fact relates to the Greco-Roman wrestler's
situation, namely, why wasn’t the monetary prize re-taken from the sportsmen,
due to his violation of the anti-doping rules. In this respect it should be
noted that neither at the time of issuance of the monetary prize (end of August
2018) nor at the time of submitting an application to the Ministry for
information (IDFI) on this matter (25 April 2019), no official written was
given to the Ministry regarding his violation of any regulations. Nor the
10-month disqualification from participating any competitions. At the same
time, due to the violation of anti-doping rules by any athlete, even the leak
of information to the public domain would not be an automatic basis for
requesting back a cash prize if the relevant international federation did not
decide on the result of that person (for which a monetary prize was awarded).
On cancellation and confiscation of a medal. As we know, the International
Wrestling Federation has just made a decision to seize the medal for this
wrestler, and therefore, after receiving a formal written notification, the
Ministry will be guided by these decisions, international practices and similar
practices. It will take individual measures within the framework of the legislation
to take actions to secure the refund of the money transferred.