Campaign finance and political finance management represent one of the most strictly regulated and monitored areas of Georgian law. Legislation in force in Georgia, specifically the Organic Law on Political Unions of Citizens and the Election Code, sets detailed and rigid frameworks regarding where a political party or candidate can receive funds from and how they can be spent. The State Audit Office carries out constant and in-depth monitoring of the financial activities of political entities. Any misconduct—whether it be an illegal donation, an incorrectly declared expense, or concealing a source of funding—results in substantial financial sanctions (often double the amount) and may even become grounds for criminal prosecution. Legal services in this field are critically important for political parties, independent candidates, and donors to fully comply with legal requirements and avoid reputational and financial damage.
What does Campaign Finance service cover?
Specialists on our platform offer comprehensive legal support regarding political finance management, which includes:
- Donor Due Diligence: Identifying donors and establishing their compliance with legislation (e.g., checking if the donor is a winner of state tenders or a foreign citizen, who are prohibited from donating).
- Preparation of Financial Declarations: Preparing and submitting mandatory 3-week and annual financial reports for the State Audit Office with legal precision.
- Election Fund Management: Legal assurance of procedures for opening, managing, and closing the election fund, classification, and documentation of expenses.
- Audit Support: Protecting the party's interests during inspections conducted by the State Audit Office and answering inquiries.
- Administrative Disputes: Appealing imposed fines and sanctions in court if the decision of the Audit Office is unsubstantiated.
- Consultation on Advertising and Agitation Costs: Correct legal execution of media advertising, outdoor advertising, and remuneration for agitators.
Real-world scenarios and risks
Mistakes in political finance are costly. Here are some examples of when you need a lawyer:
- Illegal Donor: A party received a donation from a company (legal entity), which is prohibited in Georgia. A lawyer will help you execute the procedure for immediately returning the funds to avoid a fine.
- Exceeding Limits: An individual donated more than 60,000 GEL in a year. It is necessary to identify the excess amount and return it or transfer it to the state budget in compliance with the law.
- Non-monetary Donation: A supporter provided office space or a vehicle to the party for free. This is considered a non-monetary donation, which requires audit valuation and declaration; otherwise, it will be considered a concealed donation.
- Taking a Credit: An electoral subject wants to take a bank loan for the campaign. A lawyer checks whether the loan terms comply with the restrictions of the Election Code.
Georgian Legislation and Regulations
The field is regulated by the Organic Law of Georgia on Political Unions of Citizens, which defines funding sources, donation caps, and prohibitions. The Election Code of Georgia establishes rules for managing the election fund during the pre-election period. The Law on the State Audit Office and orders of the Auditor General are paramount, defining reporting forms and deadlines. Legislation prohibits funding of parties by legal entities, foreign citizens, anonymous persons, and public institutions. "Vote buying" is also strictly controlled and is a criminal offense.
Service Process
- Preliminary Audit: Legal check of the current financial status and donor list.
- System Setup: Developing internal procedures for receiving and spending donations (compliance).
- Reporting: Preparing periodic reports and submitting them to the Audit Office.
- Crisis Management: Legal response and damage minimization in case of a violation discovery.
Why Legal.ge?
Political finance law is a narrow and specific field. An accountant without a lawyer often cannot correctly identify risks because the law requires not only numerical accuracy but also confirmation of the legality of sources. Legal.ge gives you access to experts who have experience working with political campaigns and can protect your party or candidacy from severe financial sanctions.
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