Ministry of Finance Responds to Fresco Founder’s Accusations

Georgia’s Ministry of Finance (MOF) has released a statement in response to the founder of the chain of supermarkets Fresco Vasil Sopromadze, who accused Ministry of Finance employees of committing crimes.

Sopromadze released a video address on March 9, slamming the government for their attitude to business and urging politicians to use common sense.

“I have been hung in the air by the agencies of the Finance Ministry which have failed to make a tax conclusion, even based on violation of all regulations, because they know that they are totally wrong,” he said.

“Do not treat business like a hooker. Believe me, business will give you a proper answer,” Sopromadze added.

MOF’s response to Fresco founder reads that his [Sopromadze’s] accusations towards the ministry employees have not been confirmed by an internal audit.

“The ministry will apply to legal measures and will also demand a public apology on part of Sopromadze for damaging the reputation of the system and misleading the public,” the statement reads.

The revenue service of the Ministry of Finance began checking the tax activities of Fresco on February 20, 2018.

The MOF explains that as a result of the inspection, a draft of the relevant tax inspection act has been developed, however, the payer does not agree with it.

“At this stage, the dispute is being discussed by the dispute settlement council of the revenue service under the Ministry of Finance and tax payer is authorized to file an appeal against the decision to the fort of the dispute settlement council, which is represented by the representatives of various agencies and business sectors,” the ministry stated.

The statement reads that before making the final decision about the dispute, the allegations made by the founder in connection with pressure put on the business by the state, are “groundless and unsubstantiated.”

“As for Vasil Sopromadze's allegations about alleged crimes committed by Ministry of Finance employees, first of all, we would like to state that for the Ministry of Finance, as a responsible public agency, condemns any act that harms the reputation and professional activities of the system and thousands of people working there,” the Ministry of Finance said.

In response to the video address released by the Fresco founder, Tbilisi Mayor Kakha Kaladze told journalists that since 2012, when the ruling party Georgian Dream (GD) came to power, there are not any facts of terrorizing or putting pressure on businesses.

“If any person does anything illegal and incorrect, relevant agencies will be interested and everybody will be held accountable. Of course, the investigation will be unbiased,” the Mayor said.

By Thea Morrison

Photo source: Sputnik Georgia