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Thomas Blaik:”Business Environment Will Worsen in Georgia”

November 2, 2009

Thomas Blaik, director of Thames UK Limited was deprived from his right to control his own business – this information was released at the press-conference in Tbilisi Marriott on October 23.

According to the Company representative, Thames UK Limited is a British Company, which invested 70 million USD in Rustavi Metallurgical Complex in December, 2007 and became owner of its 100%.

Blaik arrived in Georgia in July of 2009 in order to prepare future investment plan for the reconstruction of Rustavi Iron and Steel Industries but he was not allowed into the factory. Besides that, he was not allowed to study documents and other files of the company.

As it was found out, local management group, which is supported by local judiciary, deprived the right of management and legal control of his business from Thomas Blaik.

Local Management also refused to collaborate with the company, as it was found out they were involved in splitting Rustavi factory into pieces and then selling it as scrap-iron.

Rustavi Court released two judgments which assigned set of restrictions on Thames UK Limited.

According to the first judgment, Thames UK Limited does not have right to change the head of local factory which owns Holding Company “Energy and Industry Complex” or change several changes in its regulations. Despite that Thames UK Limited is a beneficiary owner of the 100 % of the company.

The second judgment also prohibited to involve in the activities of its branch company “Energy and Industry Complex” and JSC “Georgian Steel”. However, the foreign company owns 100% of the “Georgian Steel”.

Although the company appealed the Georgian Court against the abovementioned issues, according to the decision of the Executive Bureau of Justice made on October 15, 2009 they put stocks of the company to the auction so without informing the owner. According to the judgment of the Georgian Court the administration of the company did not have chance to study documents about the above mentioned decision.

Consequently, according to the court decision, owner of the 100 % in the company was not allowed to run the company.

“We suppose Josef Key is standing behind these facts,” said Blaik. He added the owner company of his company previously was connected with Badri Patarkatsishvili (late Georgian businessman), but Josef Kei is still considered to be a worker of one of the offices of the company.”Everything happens with the support of criminals. This is local administration of Rustavi city and management group of the company”.

Britain Embassy in Georgia, Minister of European Affairs of UK and the Minister of Foreign Affairs expressed their concern about the fact during their meeting with the Minister of Foreign Affairs of Georgia.”Nevertheless, such a high-level appeal of the government of UK was not replied either,” said Blaik.

Final auction will be held at the end of month, after the company will lose all rights on its business in Georgia.

Thames UK Limited has been investing funds in our country for a long time. Spreading information about this fact will have negative influence on the Investment Environment and image of the Country.

“This fact is very important as a potential warning for investors who plan to work in Georgia. For this press-conference they will impose a huge fine or 2-years-imprisonment on me”, said Blaik.

At the end, in his statement to the president and prime-minister of Georgia, the businessman appreciated the way of the government towards improvement of investment environment and is ready to support it; but he spoke about suspicious powers in the country who are trying to satisfy their mercantile wishes at the expense of Georgia.

Blaik requests the president to clear up this current situation in near future and protect him from criminals, who are trying to expropriate investors in Georgia.

“The reputation of Georgia as an attractive country for investors, and fair and reliable state for business, is under risk now”, he says.

According to the amount of investments in Georgia British companies are leaders and Thames UK Limited is on the second place.

According to the Statistics Department of Georgia, in the first two quarters of 2009 in comparison to the same period of 2008 relatively, investment from Britain has reduced at 38 % and has reached only 43 million USD.

And if improvement of the investment environment is main priority of the country and if criminal situation is improved, why the foreign investor is complaining and why the government does not react on it? Why is he scared that he will be punished for talking about his problems publicly, when freedom of speech and democracy are the main principles of our government.

Source: Banks and Finances

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