American Chamber of Commerce Releases Statement about TBC
The American Chamber (AmCham) of Commerce in Georgia released a statement regarding the recent developments around the largest bank in Georgia –TBC.
The statement reads that the Chamber is avoiding making any comment concerning an ongoing investigation, given the extraordinary circumstances surrounding this situation.
AmCham says TBC Bank has been a long-standing and key member of chamber for 15 years.
“TBC is one of the key pillars of the economy of Georgia and the region, and its FT250 listing on the London Stock Exchange makes it a shining example of Georgia’s success,” the statement reds, adding AmCham respects the rights of TBC, including its senior management, to avail itself of any and all court proceedings in accordance with the presumption of innocence until proven guilty.
The Chamber also recognizes the regulatory role of the National Bank and the necessity to investigate, together with the General Prosecutor’s Office, any potential infractions.
“Most importantly, we encourage all parties to continue to work towards a timely, fair and transparent solution to this issue. Otherwise, an ongoing, very public dispute will result in irreparable harm to the Georgian economy, reputation and future FDI,” the AM Cham statement reads.
Two days ago, Mamuka Khazaradze, Chairman of the Supervisory Board of TBC Bank, stated at a special conference that they are ready to work with the National Bank of Georgia (NBG) on the recent developments regarding the bank’s transaction 11 years ago.
Khazaradze noted that TBC respects state institutions and the law but they cannot agree with the decision of the NBG to suspend the authority of the Chairman of the Supervisory Board and his Deputy, Badri Japaridze.
“TBC Bank filed a lawsuit against all decisions of the NBG on the 11-year-old case and we look forward to justice,” he added.
On February 21, Khazaradze announced that he leaves TBC, where he spent 27 years.
He wrote that the bank has been under the attack for past few weeks, which resulted in huge losses for the shareholders, amounted to $200 million in one month. He also noted that the reputation of the bank has been put under question.
On February 14, NBG stated that after examining transactions conducted by TBC Bank 2007-2008, it was revealed that Khazaradze and Japaridze violated the requirements of the legislation regulating conflict of interests, therefore it suspended the authority of the two men.
In early January Georgia’s Prosecutor’s Office launched an investigation into one of the transactions of the bank, made 11 years ago. The agency noted the case concerns “illicit income legalization and money laundering.”
TBC denies all allegations, saying the mentioned transaction was in compliance with the law and proper procedures.
Georgia’s Association of Banks, and also the International Chamber of Commerce released statements, supporting TBC.
By Thea Morrison
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