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8.1 Bank sector overview
Co-founder executives of Georgia’s TBC Bank Group charged with money laundering
Georgian prosecutors on July 24 charged TBC Bank founders Mamuka Khazaradze and Badri Japaridze, former chairman and deputy chairman of TBC Bank Group, with laundering $16.75mn in 2007-2008.
The group issued a release explaining that the two, as non-executives, were not involved in its day-to-day management. There has been no suggestion of any charges being brought against TBC Bank Group, TBC Bank or any other member of the group, the press release added.
Khazaradze said that the charge “aims to stop the construction of Anaklia Deep Sea Port,” a $2.5bn project that is Georgia’s flagship infrastructure investment, Agenda.ge reported. It is being developed by TBC Bank in partnership with US partners.
Apart from developments related to Anaklia port—which lately moved in the right direction when the government extended the deadline for concluding financing for the first phase of the project by six months—Khazaradze has become directly involved in politics. He announced that in September a “civic movement” is to be created that would express support for the anti-government protesters who have occupied Rustaveli square in Tbilisi since June 20. There has been speculation that government attacks 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 on July 24, after he was officially charged with money laundering.
The two bankers said that the money laundering charges were absurd and damaged prospects for attracting investment to the country.
Khazaradze represents TBC in the Anaklia Development Consortium (ADC). ADC faces problems 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, is 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 said to journalists.
Tbilisi-based TBC Bank dominates the banking industry in Georgia with main competitor Bank of Georgia. It has named senior independent director Nikoloz Enukidze as its new chairman.
35 GEORGIA Country Report November 2019 www.intellinews.com
