TBC Bank founder demands resignation of head of National Bank, creation of investigation commission for TBC case

Co-founder of TBC Bank Mamuka Khazaradze has demanded the resignation of the head of the National Bank of Georgia Koba Gvenetadze and the creation of an investigation commission regarding the money-laundering case involving top former TBC bankers.

• Georgian Chief Prosecutor’s Office releases new details on TBC case

The demands come after claims of the Prosecutor’s Office of Georgia  that Khazaradze and Japaridze, the founders of TBC, may be involved in laundering 17 million USD in 2007-2008, when the bank issued a loan to two private companies and the same day the money was placed on the personal accounts of Khazaradze and Japaridze.

Georgian Prime Minister Mamuka Khazaradze says that the TBC case has nothing to do with the Anaklia project. Photo: Prime Minister's press office. 

• Georgian National Bank demands withdrawal of TBC bank top figures from its supervisory council

Khazaradze, who was invited to parliament today to provide details regarding the case, stated that he and the bank are the victims of a “deliberate attack” from the government and claimed that he had received a letter which included “threats” from Interior Minister Giorgi Gakharia ahead of the second round of presidential elections in Georgia in November 2018.

• Founder of TBC Mamuka Khazaradze resigns from bank and supervisory council

The letter which was sent by Gakharia read that if we did not meet the demands, our reputation would be destroyed both inside and outside the country. We did not fulfill the demands,” Khazaradze said.

He refused to speak about the content of the letter and said that he will make it public when a parliamentary commission is created to “reveal the truth” around the “fabricated case.”

Khazaradze said that he told the employees of the  Prosecutor’s Office and a judge regarding the letter when he was summoned for interrogation regarding the case a couple of months ago, ‘however, the office showed a zero interest to what I said.”

Khazaradze stated that he does not “understand the reasons behind the attack.”

The price of stocks of the TBC Bank start rising at the London Stock Exchange after the resignation of Khazaradze and Japaridze. 

‘Four agencies entered the bank, we were cyber-attacked’

Khazaradze stated that starting from summer 2018 the State Monetary Financing Service, the Prosecutor’s Office, the Tax Office and the National Bank entered the bank regarding the case.

The bank does not have an obligation to archive  materials older than six years. However, we provided all the needed documentation that was issued 10-11 years ago,” Khazaradze said, adding that the transaction was “absolutely legal.”

Khazaradze says that five months ago the bank was cyber-attacked and the bank employees could identify even the room and the computer ‘located in central Tbilisi’ where from the attack took place.

We addressed the Interior Ministry, provided all the details and i have written five letter to them so far to receive information regarding the pace of the investigation. The only thing they told me was that the computer was seized,” Khazaradze said.

Possible impact on the $2.5 billion Anaklia Port

In his earlier statements Khazaradze said that the “deliberate campaign” against him could be related to the Anaklia deep sea project, which is being carried out with the involvement of the TBC Holding.

He says that when he was summoned for interrogation which took place with the presence of a judge in 2018, he provided all the documentation proving the legality of the transaction and requested from the Prosecutor’s Office not to make public statements.

The reason was that we were scheduled to sign two important documents regarding the project with two foreign banks on 16 January and any speculation could harm the agreement. Both the Prosecutor’s Office and the judge agreed. However, on 9 January the Prosecutor’s Office made the statement about possible money laundering, which was absurd, as they were not able to name possible wrongdoers or those who were affected by the transaction,” Khazaradze said.

He stated that if all the questions are not answered regarding the case the Anaklia project will not be carried out, as this is the demand of the international institutions which may invest in the project.

Accusations of money laundering

Khazaradze says that the 17 million USD, which is mentioned in the case being investigated, were taken by him and another founder of the bank, Badri Japaridze, as a loan from Avto Tsereteli, a businessman with whom they had a friendly relationship, as the bank faced problems in 2007.

Khazaradze said that on his part Tsereteli had a separate loan of $17 million taken from the bank for his business that he could not cover, as many companies faced problems and went bankrupt due to the Russia-Georgia war in 2008.

That is why the loan was written off. We have written off 100,000 loans over the past 10 years,” Khazaradze said.

Interior Minister Giorgi Gakharia states that he says his views openly, without writing letters. 

NBG, Prosecutor’s Office and Gakharia respond

The National Bank of Georgia says that its decisions regarding the demand of resignation of Khazaradze and Japaridze and fining the Bank for the violation of interest conflict-related rules, were “absolutely legitimate.”

NBG has acted within the law and within its obligations. We have addressed such measures to Georgian banks many times in the past,” NBG says.

Gakharia stated that a “privileged businessman has tried to gain immunity through gossiping from the parliamentary tribune.”

I never write letters, I say my view openly to those with whom I deal,” Gakharia said.

He said that everyone will have to answer “for their obligations and words.”

The Prosecutor’s Office says that Khazaradze will be summoned for his statement concerning Gakharia.

The opposition has demanded Gakharia to come to parliament to answer questions.