TBC Bank finds itself in hot water again
15 February, 2019
TBC Bank finds itself in hot water again
TBC Bank finds itself in hot water again. The National Bank of Georgia explains that after examining transactions conducted by TBC Bank 2007-2008 , it was revealed that Chairman and Deputy Chairman of TBC Bank's Supervisory Board violated the requirements of the legislation regulating conflict of interests. The NBG released a statement on Thursday, explaining the reasons of the request for suspension of signatory authority for Mamuka Khazaradze and Badri Japaridze.

"The National Bank of Georgia takes high responsibility for the
stability of the financial sector. Supervision of commercial banks is carried out in Georgia in accordance with the best international standards.

The NBG decided to suspend the signatory authority for the TBC Bank's Supervisory Board Chairman and Deputy. At the same time, the TBC Bank's shareholders' meeting was tasked to recall them from the supervisory board within 2 months.
TBC Bank's Supervisory Board Chairman Mamuka Khazaradze

The decision is triggered by violations of the requirements of the legislation regulating conflict of interests, which are linked to 2007-2008 transactions.

The National Bank emphasizes that TBC Bank is one of the leading financial institutions with its executive management. TBC Bank is a strong and sustainable credit institution and fully complies with existing economic standards and limits. It should also be noted that this supervisory decision of the National Bank of Georgia is not directed against "TBC Bank"…

The measures taken by the NBG will further improve the quality of the bank's corporate management, which ensures further development of TBC Bank and will make it more attractive for investors, "the National Bank said in a statement.

Zviad Kordzadze, lawyer of Mamuka Khazaradze who is the Chairperson of TBC Bank’s Supervisory Board, will file a lawsuit against the request of the National Bank for resignation of TBC Bank’s Supervisory Board Chairperson and Deputy Chairperson.

“It’s unclear why such a decision was made regarding the 11-year-old issue and it will be one of the motives for suing,” Kordadze said.

TBC Bank's Supervisory Board Chairman Mamuka Khazaradze posted on Facebook a statement:

"An organized campaign has been ongoing against TBC, Badri Japaridze and me for 8 months. Today the National Bank demanded to remove us from the company, which we created together 27 years ago and which today is a successful, international, London-based, multi-billion organization.
Post by Mamuka Khazaradze was originally written in Georgian on Facebook

The Tbilisi team of the bank includes 10,000 employees, who are hopeful of future. Today TBC is a world-class company in the business world, an institution that can make each Georgian proud. One of the most famous legal companies in the world, DENTONS studied the case, which is now being examined, and could not find any money laundering, abuse of power, conflict of interests or any other violation.

We will not give up our work, our freedom, our dignity; We will not tolerate injustice and we will protect the legal rights of TBC and its shareholders by all means available to us in local and international institutions.

It is also very suspicions that they made this hastened decision now, when we are so close to the country's most important project - the successful implementation of the Anaklia Port. I'm still hopeful of future and I want to thank all of you for supporting us! "- reads the statement.
Zviad Kordzadze, lawyer of Mamuka Khazaradze

The Association of Banks of Georgia supports TBC Bank, all its employees and calls on the stakeholders to refrain from excessive insinuations.

While we do not have specific details, we understand that the NBG is doing its job as the financial supervisor within the scope of its responsibilities, - Francois Painchaud, IMF Resident Representative in Georgia said in response to a question related to TBC Bank.

According to him, not taking action when the legal framework calls for action would damage the credibility of the financial supervisory framework and the NBG as an effective supervisor.

“Let me finally note that TBC bank is financially strong and well-capitalized. As far as we understand, there are no concerns at this stage about the financial soundness and stability of TBC bank”, - Francois Painchaud said.

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