Georgian privatization law lacks transparency
13 March, 2014
Georgian privatization law lacks transparency
The law on privatization related procedures is still far from being perfect which makes the process non-transparent and the results less available for publishing. This is the message sent by non-governmental watchdog Green Alternative in its most recent report “Aggressive Privatization Policy or ‘the Georgian Way of Privatization-2,” aired on 28 February.
According to Nino Gujaraidze, Executive Director of Green Alternative, the law regulating privatization procedures as well as the implementation of the obligations assumed by investors underwent multiple amendments
during the last two decades though it appears to be as ineffective as ever. Georgia approved the law on privatization in 1997 and 34 amendments were made to the law until 2010 when the regulation was reformed into the law on Sate Property. Starting from 2010, 22 more changes were made up to this day although none of them insured more transparency in the privatization process.
“I mean the entire process starts from the day the decision on property divesture, including the contract conclusion and access to the information on implementation the assumed terms, is made,” Gujaraidze said during the presentation of the report. According to her, the changes were mainly aimed to enhance the number of property slated for the privatization while they were not the result of public consensus. The privatization regulation does not envisage public inclusion during the decision-making process. To get access to privatization related information remains complicated, which sometimes creates funny incidents such as the Ministry of Economy denying existence of a contract that is in fact published on the website of the Public Registry. To withhold information about the impact on the environment, the Ministry of Economy once denied that water is a part of the environment, Irakli Macharashvili, Coordinator of the Bio-diversity program at Green Alternative, elaborated.
Green Alternative, majoring in environmental issues, worries that the possible impact on the environment is the last and most neglected point on the list of state requirements towards the investor companies. On the other hand, it is hard and frequently a vain effort to track down owners of the investor company who acquired assets of enterprises that may have a harmful impact on the environment. The list includes investors in hydro generation and distribution, water supply, ore exploring and processing enterprises like GeoPro Mining, which is involved in the gold, copper and quartz exploration processing industry; Georgian Manganese Limited, who owns the ferro-alloy plant in Zestaponi, the manganese mining industry in Chiatura and hydro plant cascade Vartsikhe; Georgian Industrial Group, who owns coal mines in Tkibuli and many more. Information on the owners of companies of either joint stock or limited responsibilities is unavailable. As a rule, owners are registered in offshore zones far from Georgia where even court cannot reach and/or identify the right person. This prevents legal procedures against the investors.
Information on how close the investors stick to the contracted obligations is beyond the public reach or hardly available, even if the contracts are defined as non-confidential by law. Green Alternative recommends authority to charge the State Audit Office of Georgia with research into the legality of the divested state property. Parliament should strengthen control on the way state structures now handle public information to prevent their latent secrecy. It is important to make an in-depth analysis on how legal these confidential contracts are. The controlling mechanism must be strengthened and become more effective through both comprehensive mandates and qualified personnel.

Other Stories
The most wanted fruits from Georgia
The fruit exportation has decreased in Georgia. According to Geostat (National Statistics Office of Georgia), this year, up until May Georgia exported 25 939 300 USD worth of fruit – 6 771 300 USD less than in 2018.
Investment Plan for Europe – Additional EUR 800 million for SMEs as EIF and ProCredit double support for innovative companies
The European Investment Fund (EIF) and ProCredit Group are providing an additional EUR 800 million to innovative small and medium-sized companies (SMEs),
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
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
July 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