Business Association of Georgia Expresses Support to TBC

The Business Association of Georgia says that if needed, it is ready to protect the objective and fair interests of TBC as a member of the Association.

The Association released a statement saying TBC Bank is a leader of Georgia's financial market.

“It is a very successful and professional banking institution. It has a high reputation and we are sure that it will be more successful in the future,” the statement reads.

“We would like to say that if we really care, it is better not to talk about TBC Bank. Banking activity is entirely based on the bank's reputation. TBC Bank has a lot of foreign depositors. So the more we talk about the bank, the higher the risk is of staining its reputation,” the association added.

On February 14, the National Bank of Georgia (NBG) stated that after examining transactions conducted by TBC Bank 2007-2008, it was revealed that the Chairman of the Supervisory Board of TBC Bank Mamuka Khazaradze and his Deputy Japaridze had violated the requirements of the legislation regulating conflict of interests, therefore it suspended the authority of the two men.

Khazaradze filed a lawsuit against the regulator, but the supervisory board decided to withdraw it. It was followed by Khazaradze’s resignation as the board chair.

He announced he was leaving TBC, where he had spent 27 years. His deputy also decided to quit. However, Khazaradze and his deputy will keep positions at TBC Bank Group PLC, registered in London, UK, which keeps 100% shares of TBC Bank.

Khazaradze arrived in Parliament last week and raised the issue of responsibility of the National Bank President Koba Gvenetadze and his deputy. In addition, Khazaradze stated that he had received a threatening letter from Minister Gakharia.

Georgian Prime Minister Mamuka Bakhtadze says that various political forces are trying to take the TBC Bank issue back to the political information field, adding it is “irresponsibility and an attempt to provide the population with distorted information.”

In his interview with Kviris Palitra, the TBC Bank founder stated he did not rule out his detention, noting that speculations about his detention were an attempt to exert psychological pressure on him and his partners.

"Is this not psychological pressure?! Is this not leverage to influence my partners?" Khazaradze asked, naming himself a victim of the "state machine."

By Thea Morrison