Procedural Code Discriminates Investors
17 October, 2013
Procedural Code Discriminates Investors
Malfunctioning of the Procedural Code of Georgia foster discrimination of businessmen and encumber the much touted process of restoration of investors’ rights in spite of declared political will of Georgian Government to reinstate justice in the country. And Georgian investors constitute the most vulnerable group, suffering from the inadequate legislation that mandates Prosecutors’ Office to act at its own discretion and settle things in favor of foreign investors. However, discrimination of any investor sends negative signals about the investment climate
of the country.
Discrimination of Georgian businessmen, investors and proprietors through Prosecutors’ Office and law-enforcing structures was a well tested practice established by the ex-ruling power of the National Movement. According to Amiran Giguashvili, the lawyer who specializes in property rights protection, the active procedural code was re-tailored in 2010 [without consultation with the Association of Georgian Lawyers] by currently wanted ex-Prosecutor of Georgia Zurab Adeishvili in order to fit it to the money-extortion mechanism of the ex-power, whose main victims were Georgian investors.
“The reason is simple: to extort money from local entrepreneurs [or violate rights of proprietors] is much easier than to trespass on the rights of foreigners. So the practice was that whatever the crime foreign partners [or litigant sides] might have committed against Georgian businessmen and no matter how faithful Georgian partners might have been to the law, the Prosecutors’ Office would settle disputes in favor of foreigners and Georgian investors were put behind bars and sentenced to pay money [in the state budget]. And the driving force of this practice was law-enforcers led by Department of Constitutional Security and Prosecutors’ Office that was granted a full mandate to act at its own discretion,” Giguashvili said in the interview to Georgian Journal. The excuse was the need to improve investment climate to attract more foreign investments. However after forceful handing of assets, in particular agriculture lands, from Georgian owners to foreign investors no investment projects were implemented and the lands were laid unused offering no contribution to value-making chains of Georgian economy. Economic analysts explain that many investors from money-abundant countries like China, India, Iran, Turkey or United Arab Emirates used to invest money in real estate in Georgia as the land is much cheaper here whereas its value increases each year and can be sold for much higher price after some time. And this vicious mechanism still goes ahead as far as neither the law nor the personnel of Prosecutors’ Office is changed. The underway litigation process between Ali-Riza Kizildag, a Swiss by citizenship and Turk by ethnicity who turned out to be convicted in Turkey for making a plot against the state, and his Georgian business partner Archil Vekua, an owner of hazelnut factory in Zugdidi [west Georgia], is a clear illustration of it, Giguashvili believes. According to him, Kizildag, who started his business in Georgia as a representative of Swiss investment group in 2009, swindled other Georgian partners before he became a partner to Vekua in nut business. Now he sues Vekua for alleged financial arrears that were pumped by Kizilgad’s own microfinance organization Swiss Credit out of Vekua’s company in fact. Although Vekua sued Kizildag at the civil court in Zugdidi, Kizildag succeeded to start [in spring of 2013] and win a parallel litigation at Prosecutors Office before the civil court draw out its decision. Afterwards Vekua won the civil court and now the trick is that Vekua bears a criminal responsibility for the case that he was acquitted of by civil court.
“It is nonsense in the international law. Filing one and the same case separately at two instances is forbidden normally but it is lawful in Georgia thanks to the Adeishvili’s procedural code that leaves things at the discretion of Prosecutors. And since the personnel at the Prosecutors’ Office is not changed in fact, they act as they used to during the previous Authorities and the vicious practice of discriminating investors goes ahead and will continue unless the law is not changed properly,” Giguashvili elaborated.

Other Stories
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.
Mziuri Park in Tbilisi to be renovated soon
It was the dream of prominent Georgian writer Nodar Dumbadze that when the original Mziuri park was constructed and opened in 1892 that it should be a park for children,
Winemakers to produce Kvanchkara in its place of origin - Racha
Khvanchakara is a semi-sweet Georgian red wine which originates from Racha, in the western part of Georgia. Kvanchkara is made of two types of grape Mujuretuli and Aleksandrouli.
The level of Georgian wine and Chacha exported has increased
The National Wine Agency of Georgia has recently published statistical information about the level of Georgian wine and Chacha exported between January and July, 2018.
New fire engines to be Manufactured in Georgia
The Acting Head of the Emergency Management Agency Shalva Khutsishvili said that the old Zili fire engines (which were made in the USSR) will be phased out and replaced with new ones, manufactured in Georgia.
Georgia witnesses a record number of tourists
The Georgian National Tourism Administration publishes statistical information about international visits to Georgia.
Canadian businessman plans to build a hotel in Bakhmaro
Canadian businessman Vadim Malishev plans to build a hotel in Bakhmaro resort, Guria, in the western part of Georgia.
Coffee Factory will open in Tbilisi in October
The first coffee factory (which will be located on the Kakheti highway) in Tbilisi will open in October.
Places in Georgia where real estate is the most expensive
The real estate market in Georgia is growing annually. In Tbilisi as well as other regions of Georgia new developments are increasingly taking place.
How much does a vacation cost in Tbilisi?
It is the middle of summer and those who have not yet taken a vacation are looking for an appropriate place for sure!
The price for extreme sports in Georgia
Georgia offers a variety of options to extreme sport lovers.
The number of Georgians who own property abroad increases
The number of foreign properties owned by Georgians is increasing.
How much does Taxi cost in Tbilisi?
Stories how Taxi drivers try to deceive passengers and charge them with more money than they should pay are known for everybody all over the world.
What are the highest paid areas in Georgia
According to the data collected by the National Statistics Office of Georgia in the first quarter of 2018 the highest paid jobs in Georgia are found in the financial and insurance fields.
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
September 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