Page 9 - GEORptAug19

EBRD issues statement
speculation that attacks on the government made by Khazaradze since last year were prompted by his plans to get into politics.
“The government continues its actions against me and Japaridze which they started in January 2019. The moves by the government have affected us, as well as shareholders of TBC Bank, the implementation of the Anaklia Port project and the state,” Khazaradze said after he was officially charged with money laundering.
The two bankers said the charges would damage prospects for attracting investment into the country.
Khazaradze represents TBC in the Anaklia Development Consortium (ADC). ADC is facing difficulties in raising $600mn from international financial institutions for first-phase financing. It has accused the government of actions that have hindered the process. Bidzina Ivanishvili, the billionaire head of ruling party Georgian Dream and an ex-PM of Georgia , i s often accused of wanting to take over the project .
“Ivanishvili does not want to see foreign investors. He does not want competition. It's very dangerous for the country. Only Bidzina Ivanishvili's friends come here,” Fadi Asli, chairman of the International Chamber of Commerce (ICC) in Georgia told journalists.
Following the resignations, the European Bank of Reconstruction and Development, a minority shareholder in TBC Bank Group, put out a statement, reading; “EBRD notes the recent board changes at TBC Bank Group PLC. The bank is a solid financial institution led by a strong management and an independent board of directors. We welcome the decision by the chairman and the deputy chairman of the bank to step down from the board at this time to focus on allegations made against them in a legal dispute.
“We also welcome the strengthening of the board with the addition of independent directors with extensive executive level experience in financial institutions. We expect a fair and transparent due process and a prompt resolution of the case with no adverse impact on the operations of the bank. Meanwhile, the EBRD as a longstanding partner, shareholder and lender of TBC Bank will continue to work with and support TBC Bank Group PLC.”
2.3 Georgia’s ruling coalition takes steps towards proportional elections in 2020
The Georgian Dream-Democratic Georgia (GDDG) ruling party initiated a constitutional amendment on July 1, with the aim of introducing a proportional system for parliamentary elections from 2020, rather than compared to 2024 as set out in the transitional provisions attached to the new Constitution.
Nonetheless, the elections in 2020 will be held with a “natural threshold” of 0.67%, in practice meaning any party receiving enough votes to have an MP in the 150-seat parliament would be accepted. In comparison, from 2024 a 5% threshold will be enforced.
NGO Transparency International cheered the initiative, but echoed the
9 GEORGIA Country Report August 2019 www.intellinews.com