The company registered in the Culture Minister’s apartment does not pay the state debts

The Georgian Young Lawyers' Association, on December 9, 2016, introduced to public the research "The Company registered in the Minister’s apartment with over a million of state debt."

The research focused on the details of the agreement concluded between the State and LLC International Events in 2005, according to which Tbilisi Concert Hall (Philharmonic) has been transferred to the LLC International Events under the 49 year lease, and connection of Mikheil Giorgadze, the Minister of Culture and Monument Protection of Georgia and Kakhi Kandelaki, the Deputy Minister to the above-mentioned company who had been the shareholders of the company until the autumn of 2014.

On December 20, 2016, after the publication of the research by the Georgian Young Lawyers' Association, the National Agency of State Property applied to LLC International Events and requested the fulfillment of the contractual obligations, namely:

- Payment of the management fee - 800,120 GEL (from 2010 to present);

- The penalty for the delay in provision of contractual investments in the Concert Hall arrangement  - 10,102 GEL;

- The penalty for non-observance of the opening dates of the Concert Hall - 189,750 GEL;

-  The penalty imposed on the failure to provide information - 189,750 GEL;

- The information reflecting the international and local events conducted;

- Submission of expert-auditory reports.

Although the deadline for fulfillment of the liabilities of the LLC International Events was set at January 1, 2017, according to the information obtained by the Georgian Young Lawyers' Association the company has failed to fulfill the obligations under the contract.

Given the above mentioned, GYLA deems it necessary that:

- The State shall use the authority granted under the Agreement and terminate the contract with LLC International Events due to the repeated violations of the contractual obligations by the company;

- The National Agency of State Property shall make every reasonable efforts to ensure that the LLC International Events fully covers the debts before the State;

Hereby we would like to remind the public that the Minister of Culture and Monument Protection of Georgia - Mikheil Giorgadze and Deputy Minister Kakhi Kandelaki had been the shareholders of the LLC International Events until autumn 2014 and so far the registered address of the company is Gabashvili str. # 1, Tbilisi, the apartment owned by Mikheil Giorgadze.