Ex-director of Georgian Railway accused of $40 million of economic loss

Irakly Ezugbay, ex-Director General of the Georgian Railway, has been sentenced to two months of detention by the Tbilisi City Court today for causing an economic loss of $40 million.

Ezugbay is studying in the UK at the moment. His lawyer plans to appeal the court’s decision. 7 other officials involved in the case have been released on bail.

According to investigators, the Georgian Railway and Vagonostroitel signed 5 contracts in 2008. The price repair carriages were set at $29,000, exceeding the real price by $10,000. A total of $40 million were lost in the scheme. Suspects of the case may get 7-11 years of prison.