The Revolving Door risks in Georgia
19 December, 2013
The Revolving Door risks in Georgia
The “revolving door” or the movement of officials between the government and the business sector requires more regulation in Georgia to mitigate corruption risks, Transparency International Georgia reported on 4 December. According to the report, there is intensive movement of officials between the government and the private sector in Georgia. A number of wealthy businessmen have been elected to the Georgian Parliament, while some members of the executive branch have direct or indirect ties with business. Similar movement is taking
place in local government and independent regulatory commissions.
A number of companies with connections to Georgian officials have obtained important benefits through their deals with the state in recent years. These benefits include money received through public procurement, tax exemptions, exclusive licenses and rights, legislation designed to suit the interests of specific companies, and the lenience of law enforcement agencies toward specific companies. Some officials have moved to the market sectors that they used to supervise in their official capacity.
For example, companies connected with former and current Parliament members Kandid Kvitsiani, Archil Gegenava, Temur Kokhodze, and Gocha Enukidze received millions of Lari through public procurement (including procurement conducted without open tenders). Law enforcement agencies did not investigate alleged offences committed by companies connected with former MPs Rusudan Kervalishvili and Davit Bezhuashvili while they were members of the parliamentary majority.
Davit Bezhuashvili, Gocha Enukidze, and Kakha Okriashvili, wealthy businessmen who were elected to Parliament in 2012 from the United National Movement, left the former ruling party after it was voted out of power. This raises valid questions concerning the reasons why Georgian businessmen engage in politics.
The report pointed out that there are reasons to believe that the law that was adopted by the Georgian Parliament in 2012, enabling companies to avoid sanctions for the damage caused to the environment, was tailored to suit the interests of companies connected with MP Koba Nakopia. Companies connected to former Defense Minister Davit Kezerashvili had nearly complete control over the Georgian TV advertising market until 2012. Moreover, companies connected with Kezerashvili held exclusive licenses for outdoor advertising in Tbilisi, and the national lottery. The Imedi TV station benefited from a tax amnesty on two occasions while former Economic Development Minister Giorgi Arveladze was its director and co-owner.
The revolving door is also a problem in the new government: Energy Minister Kakhi Kaladze had direct and indirect ties with several companies operating in the energy sector prior to his appointment. Deputy Energy Minister Mariam Valishvili (who has held this position since 2008) was, according to the company registry data, also the director of the TOT Energy Company in 2008, which is a direct violation of the law.
“Georgia’s legal framework contains important mechanisms for the prevention of these problems,” TI Georgia analysts say. “However, as a result of the gaps in the law and in practice, no effective regulation of the revolving door process is carried out presently. Because of the lack of effective monitoring, there are cases where violation of existing rules by public officials does not result in any sanctions. Only a formal investigation can determine whether corruption actually occurred in the cases described above.”
Print
Other Stories
Everything of comfortable life in one space – Second part of construction of one of the largest apartment complexes finished in Tbilisi
Apartment in ecologically clean environment, thousands of square meters of green yard, swimming pools, places for various sports activities, treks for walking and running, commercial spaces – all these available in one space is not a fantasy.
Batumi awarded Europe's Leading Emerging Tourism Destination 2019
World Travel Awards Europe Gala Ceremony 2019 took place on the 8th of June in Madeira, Portugal.
Coca Cola to open new factory in Georgia, will hire female drivers
Coca Cola is opening new factory in Georgia in December.
World's best party supply company now on the Georgian market
The largest party supply store in Georgia - MyDay is launching as the official distributor of AMSCAN from 2019.
Live as a marketing tool and an unprecedented live stream launched by Livetag
Sharing information has become smoother and more versatile in today’s technological world. Recently, live streaming, an online streaming media has become especially popular.
Theme and program of Caspian Energy Forum Tbilisi – 2019 changed
“The 8th International Caspian Energy Forum Tbilisi – 2019, scheduled for June 21, will focus on the development of the Azerbaijan-Georgia relations in the field of economy and energy”,
Misunderstanding over Poti deep sea ports
There was misunderstanding around deep sea ports in Georgia – in Poti.
High demand for dollars or the investment decline – Why Georgian Lari depreciates
$1 equals GEL 2,7470 in the official rate set by the National Bank of Georgia (NBG).
PSP Group confirms negotiations regarding purchasing of GEO Hospitals
PSP Group confirms negotiations regarding purchasing of GEO Hospitals.
New life to be given to Dashbashi Canyon
Georgia’s Agency of Protected Areas is planning to give new life to Dashbashi Canyon in Tsalka (southeastern Georgia).
Who is constructing “Khadori 3” Hydropower Plant in Pankisi Gorge?
Clashes broke out in Pankisi Gorge, Georgia’s northeastern region between special forces and residents
Business Positive – Successful radio program from Radio Positive
Starting point of radio program Business Positive is to meet interesting people, communicate with them and deliver information that is interesting for the audience.
A factory of electric vehicles to be built in Kutaisi
Prime Minister Mamuka Bakhtadze stated that a factory of electric vehicles will be built in Kutaisi at the presentation of the Aigroup business group.
Qvevri-shaped hotel complex to be built in Telavi
A Qvevri-shaped hotel complex is scheduled to be built in the village of Shalauri in Telavi, Kakheti (east part of Georgia).
Georgian designers presented at Fashion World Tokyo 2019
The products of 11 Georgian designers are showcased at Fashion World Tokyo 2019,
Silknet raises $200 million in Eurobond issue
27 March 2019 - JSC Silknet (“Silknet”), one of Georgia’s leading telecommunications operators, has successfully priced a debut $200 million 5-year 11% senior unsecured bonds issue (the “Notes”).
Pistachio trees will be planted in Georgia
Dozens of hectares of Pistachio are planned to be planted in Georgia this year.
Toyota Safety Sense and Hybrid Technology
Toyota Caucasus, has presented two new models the 5th generation RAV4 and the 12th generation Corolla at Rustavi International Motorpark, several days ago.
Bidzina Ivanishvili “became number one oppressor of businesses in Georgia” - ICC Georgia chairman Fady Asly
Mr. Ivanishvili promised the business community to protect them from harassment and pressure, unfortunately his words died with the sunset of that day
The best brands of Belarus will be exhibited on a large-scale exposition in Tbilisi
"The Belarusians like to come to Georgia to relax near the sea in Batumi as well as to stay in sunny Kakhetia."
Don’t treat business like a hooker! - Georgian businessman Vasil Soprpmadze addresses politicians
Businessman Vasil Sopromadze, founder of the company "Fresco", addresses politicians
RAV4 No Compromise and Corolla Set to Impress – Two New Cars Presented by Toyota
Toyota Caucasus, the company constantly aspiring to greatness, has presented two new models the 5th generation RAV4 and the 12th generation Corolla.
Mamuka Khazaradze quits TBC bank, does not sell the TBC Bank share
I made a decision to leave TBC bank where I spent 27 years of my life
10 Reasons to buy an apartment in the suburbs
There is a tendency for Tbilisi dwellers to move from central parts of the capital to the suburbs.
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
23.06.2019
24.06.2019
USD
1
USD
2.7798
2.7798
EUR
1
EUR
3.1442
3.1442
GBP
1
GBP
3.5220
3.5220
RUB
100
RUB
4.4129
4.4129
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
USD
1
USD
2.7798
EUR
1
EUR
3.1442
GBP
1
GBP
3.5220
RUB
100
RUB
4.4129