Clearing Ivanishvili’s debt by infringement of investors’ rights
05 July, 2012
Clearing Ivanishvili’s debt by infringement of investors’ rights

The seized 100% of Cartu Group of Georgian political tycoon Bidzina Ivanishvili including the 100% of Cartu Bank within itself together with 21.7% of Progress Bank allegedly held by Ivanishvili are put on electronic auction to pay off the multi million worth fine of Ivanishvili. Cartu claims its property arrest and auctioning is illegal and violation of rights of honest investors for not a single of Cartu share belongs to Ivanishvili and several foreign companies are the stakeholders.

To force

Ivanishvili pay the penalty of GEL 74 325 065 imposed by court in this past June for alleged breakage of law on Party Financing based on allegations of Control Chamber of Georgia (CCG) authorities try through legally wrapped auction of shares imputed to be held by Ivanishvili in Cartu Group and Progress Bank just a week after the questioned property arrest imposed on June 26, 2012.
Ivanishvili refuses to pay the penalty as far as he believes the court proceedings were unfair and non-governmental watchdogs upheld his standpoint. To prompt Ivanishvili to pay the fine authorities pressed on business keys.
On June 21 the National Bureau of Enforcement (NBE) seized the property of Global TV, owned by Ivanishvili’s brother under the suspicion of vote-bribing in favor of Ivanishvili’s political party Georgian Dream. And since Ivanishvili did not change position the NBE arrested property of Cartu Group [where Ivanishvili used to be a beneficiary owner until May of 2012] as well as Ivanishvili’s shares at Progress Bank.
Actually 30 days should be given to the offender as a reasonable timeline to pay off the penalty and lift the property arrest, however NBE did not wait that long. It managed to implement the seized property assessment within a week at Samkharauli expertise bureau and put the questioned property for sale through e-auction on July 2, 2012 with the starting price GEL 75. 940 330 for 100% for Cartu Group [incorporating 100% of Cartu Bank within itself and put on auction as one lot] and GEL 1.783 249 for 21.7% for Progress Bank. 
The auction deadline is July 10, 2012 however no bidder turned out as of yet. The NBE informs the auction will be stopped immediately and the arrest lifted if Ivanishvili clears the debt.
Ivanishvili remains firm in his refusal. He is not going to pay money for the seized property that does not belong to him anymore. According to Archil Kbilashvili, a lawyer of Ivanishvili, Ivanishvili really has a stake at Progress Banks and its arrest and auction is in line with the law, but property seizure of Cartu Group and Cartu Bank are illegal for Ivanishvili does not hold a single share there at the moment. Besides he acted just as a beneficiary owner of the questioned company before and based on Georgian law no company is a subject to arrest to pay its beneficiary owners arrears.
“Beneficiary owner is beyond Georgian jurisdiction, it means that such legal entity is registered abroad and Georgian jurisdiction cannot cover it. Ivanishvili has many other companies abroad and as you cannot arrest their property to raise the penalty similarly you cannot arrest Cartu for its beneficiary owner’s debt, that’s not legal,” Kbilahsvili said in the interview with Georgian Journal.
Moreover, Ivanishvili is not a beneficiary owner at either Cartu Group or Cartu Bank since this past May. He handed his beneficiary ownership in the Bank to his eldest adult son Uta Ivanishvili and according to law, nobody can arrest property of another beneficiary owner even if he is a son of the indebted person.
However National Bank of Georgia (NBG) declared the hand-over deal annulled. It claims the deal was turned out unaware of the NBG that is illegal and therefore dissolved automatically.  According to the NBG official statement, it learned from the National Bureau Enforcement that 6 other companies appear beneficiary owners of Cartu Bank instead of Ivanishvili while this kind of change requires the NBG consent.
“In this concrete case neither the acquirer of important share nor the seller appealed the NBG accordingly, based on the law the deal is considered as imperatively void,” the NBG informed GJ.
“The NBG lies,” Kbilashvili counters. “The beneficiary owner is Uta Ivanishvili and not 6 companies as the NBG informs. Uta owns shares at those 6 companies as a beneficiary and Cartu Bank informed of this change the NBG on April 30. The hand-over was completed by May 2 to Uta abroad.”
Nodar Javakhishvili, Head of Cartu Group and Director General of Cartu Bank nicknamed the auction as a farce staged by the state to pocket Ivanishvili’s property. According to him, any potential bidder needs the NBG consent for Cartu Group includes 100% of Cartu Bank, while getting this consent is impossible in frames of electronic auction where bids are made covertly.
“That means if a bidder wins the package of Cartu Group it will be a priori annulled and the questioned property handed to the state that is the actual purpose of the authorities and not paying off the debt,” He said.
Secondly, Javakhishvili questions authenticity of the expertise as he finds impossible to assess assets of such a big company as Cartu Group within the less than a month while Samkharauli handled with the task in a week having assessed Cartu Group at GEL 151 880 661 and Progress Bank at GEL 3 566 498.
Besides, Javakhishvili reiterates that Ivanishvili is no longer owner of Cartu Group as eleven foreign companies acquired 91.74% of Cartu Group by end of this past April. He accentuates each of them owns less than 10% [a significant share benchmark by Georgian law, acquisition of 10% and more demands the NBG consent] and bears no responsibility to ask for the NBG consent and the latter cannot make the deal void.
He appeals Georgian authority to get back to legal framework and stop illegal expropriation procedure of foreign citizens’ property.


Other Stories
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Head Speaker List featuring Circle, and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.

Exchange Rates
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
January 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31