Categories
Journalistic Survey
Articles
Reportage
Analitic
Photo Reportage
Exclusive
Interview
Foreign Media about Georgia
Editorial
Position
Reader's opinion
Blog
Themes
Children's Rights
Women's Rights
Justice
Refugees/IDPs
Minorities
Media
Army
Health
Corruption
Elections
Education
Penitentiary
Religion
Others

Financial Police Verifies Its Doubts but Firm Loses Thousands of Lari

July 3, 2007

Financial Police has sealed up the property of the “Gorgia” Ltd for more than one month. Officially they blame the firm for having some violations in Tax Documents. According to unofficial information the owner of the Ltd is demanded to pay five million lari or to yield one of his enterprise. The board of the “Gorgia” claims that their accountancy is transparent and they are ready to pay fine for some violations discovered in their documents. Almost 300 people are employed at the firm and their salaries range from 300 to 1000 lari a month.  

“Gorgia” Ltd is a leader company on the market of construction materials in Georgia. The revenue of the company is more than several millions. Two years ago they purchased “Citruskombinat” (factory of citrus) in Batumi; last year they purchased Construction Factory in Khelvachauri. The firm owns the factory of plastic goods in Angisi and dozens of shops and warehouses in Batumi and Tbilisi.

Financial Police raided “Gorgia” last year and sealed it up. The investigation argued with the enterprise for four million lari. Khvicha Papunidze, director of the firm, said that detailed audit was conducted in the “Gorgia” at that time. “They raided all our shops and warehouses. The suspicion of the Financial Police turned out false. However, they still have some information; now they are raiding the goods and accountant’s documents.”

Papunidze is sure that Financial Police will not find any violations in accountancy and remove the seals from their offices.
 
Gia Gorgoshadze, owner of the “Gorgia” has lived abroad since the incident. He runs the company from there. According to Papunadze, Gorgoshadze has resettled abroad because of his frequent meetings with foreign partners. “Our principal dealer lived in Turkey; Gorgoshadze had to travel there very often. In addition to that our other partners are from various European and Asian countries. Consequently Gorgoshadze moved to Turkey to live closer to our partners.”

According to unofficial information, Gorgoshadze avoided upcoming danger. Office and shops of the “Gorgia” are situated on the intersection of Pushkin and Sokhumi Streets in Batumi. Close to these offices there are hundreds of offices for construction materials. The owners of those firms were arrested on the ground of financial violations. Last year, the Financial Police arrested businessman Sandro Sharashidze for incorrect Customs Declaration. Sharashidze served six-month-term in prison. During that time his offices were sealed up. In exchange of the freedom the businessman signed plea-bargain and paid 500 thousand lari. It is official figure but unofficially he yielded several offices in prestigious districts. Nobody reimbursed him the damage for stopped enterprise. Of course, neither employees were paid salaries. Several entrepreneurs had similar problems in Batumi.

What will Gorgoshadze have to yield? According to rumors he is demanded the Construction Factory in Khelvachauri.

Mamuka Darchia, deputy head of the Adjara Financial Police, said that they have discovered serious violations in the “Gorgia”. “According to our survey the goods of the firm were charged at the Customs House through breaching customs regulations. I think the difference was figured by 20 thousand lari. In parallel to it, Tbilisi Office of the Financial Police started investigation on other facts too. As Tbilisi office had more facts, our materials were sent there. We have not arrested anyone. We cannot tell you exact figures but it might reach several hundred thousands of lari.”

Suliko Futkaradze, the head of the Adjara Organization of the Georgian Business Federation said that the legislation does not protect business. “Financial Police can carry out three raids of any firm a year. They can seal up enterprise because of raid. The legislation does not envisage any time limits. Consequently enterprise might be sealed up for several months. If the raid does not find out any violations, the authority is not responsible for the damage and reimbursement of the employees’ salaries. It is perfect method to influence businessmen.”

Non-governmental organization Human Rights Center is deeply concerned regarding the situation. “Unfortunately, because of obscure situation, the legal entity and its employees are damaged. The organization cannot get scheduled income because of being sealed up and in addition to that hundreds of employees remain unemployed who keep their families with the money they earn at the enterprise. The essential duty of the state is to protect the rights of its citizens and rights on labor is one of them. If something causes doubt in the activities of the company, it should not be sealed up for a month to find out the violation,” said Bakur Bolkvadze, lawyer for the center. 

Emzar Diasamidze, Batumi

News