Center Point Pledges To Be Good
21 March, 2013
Center Point Pledges To Be Good
Center Point Group, the largest Georgian developer company handing out its property under three-year-management right to Dexsus, regained its property back 10 months earlier than the contract expire date and pledges to handle all incomplete construction projects completely in a year and half. For premature call off of the contract, Center Point paid USD 1.5 million to Dexsus in compensation.
The biggest construction scandal of Georgia involving former senior public officials and their company Center Point Group (CPG) who based
on research of Transparency International Georgia (TI Georgia), a non-governmental watchdog, mishandled with the around USD 310 million of nearly 6200 customers paid for the construction of new houses and left them without promised apartments or reimbursement through an intricate financial pyramid largely known as Ponzi scheme by 2010, looks like going to the end after Prosecutors’ Office undertook the case based on claims of swindled clients and TI Georgia report. Whether or not this will be a happy end and to whom is still a questionable issue that depends on unbiased state investigation and good will of the culprit company to fulfill its obligations against frustrated clients having faced both financial and moral losses during the lingering construction projects. Whether or not they get contracted housing spaces and compensations alike or only alternative living spaces will very likely be a negotiation point between expecting house-owners and CPG recently regained all its property back from the management company Dexsus hired in September of 2010 for three-year management of CPG suspended projects so as to meet all obligations assumed by CPG against clients expecting apartments of CPG since 2008 when the company faced financial problems. However, Dexus rather aggravated than solved the problem extorting more money from the clients while completely ignoring their voice of protest. As a result, out of 30 projects only 8 projects are completed and 13 put under construction at the moment. Prosecutors’ Office plans to audit each suspicious project to find the money channeling and circulation scheme practiced by CPG that plaintiff sides claim to be a financial pyramid.
“I have looked through papers and to my account approximately GEL 4.5 million was paid in Krtsanisi project while works of GEL 1.5 million are completed there and the project lays without conservation exposed to rain and sun. While Dexsus tried to feed us by promises to construct alternative much cheaper apartments,” Merab Gabuchia, an expecting house-owner of CPG told Georgian Journal. “The audits of Prosecutors’ office will scrutinize everything more precisely I hope as this is a criminal case. There are evidences that money we paid on our projects went to finance other projects.” Once legal persecution started CPG very likely decided to take control over the situation at its hands and dissolved the contract with Dexsus on March 4, 2013. As official excuse Maia Rcheulishvili, the top CPG figure, named incorrect approach of Dexus to clientele.
“I gave 30 thousand square meters of the constructed space to Dexsus with the promise to redistribute it among clients who already cleared the payment for apartments but they did not. I handed the project to Dexsus because we needed USD 40 million to fulfill financing sources that we could not raise from clients timely due to loose payment terms: they might make money-installments within 3 months that baffled us to collect due financial resources in time,” Maia Rcheulishvili, said in the interview to GJ. Now Rcheulishvili plans to raise money through banks that have stricter payment deadline. On her side, Rcheulishvili pledges to meet each problematic client to discuss the issue properly and complete all projects within a year and a half. She insists that the number of victim clients is only 705 not 6200 as Dexsus and TI Georgia statistics say. Victim clients assure the number exceeds 6 thousand in fact but CPG tries to disseminate real number from incomplete projects to alternative completed but cheaper projects so as to avoid legal pursuits, audits and perhaps huge compensations that may pop up in result of audits.
Other Stories
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.
Equivalent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
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
November 2018
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