CALM POSITION OF GOVERNMENT – ITS REMAINS IN GEORGIA

By Irma Ebralidze

Despite being at the heart of hot allegations, Georgian side calmly concluded to prolong the contract with British Intertek Testing Service (ITS).

Government including, Minister Of State Revenues, Micheil Matchavariani, will be carefully waiting for 31st December 2001 – the official last date of contract. Despite the “calmness” mentioned above, Matchavariani, as he declares, remains the same to ITS. The final verdict is upon Ministry of Justice. For now, Ministry investigates the juridical side of contract termination. “Probably, on the basis of decision by Ministry of Justice, contract will interrupt before the specified time,”- declares Matchavariani. ITS General Director, Neville Bissett has the own opinion to this issue and considers above-mentioned agiotage more political then any other. Bissett is not going to leave Georgia, while his company losses each year.
About ITS’s departure, Government of Georgia mentioned long ago. And no matter how strange it is, opinions by legislative and executive branches of Georgian government accorded to each other. ITS was no longer prestigious, so as an only way to solve the problem opponents considered interrupting the contract. However, soon, Georgian side realized that Georgia may loose more without ITS then with it. December 2000 was the month of Minister of State Revenues, Micheil Matchavariani to put on the agenda of Governmental sitting the question of interrupting contract with ITS. Government did not harry and ordered the Ministry of Justice to proceed the inquiry. However, that hasn’t yet presented the results. As it seems, Ministry of Justice is failing to judge. And yet, contract cancellation, as the Ministry itself describes, is the process of hard work and long period including, 6 months of interrupting an agreement and the same for announcing the new tender.
Two months later, ITS had set about to work in Georgia, the most of entrepreneurs opened the talks about unsuccessful business of company. However, none paid attention to them until State Budget emptied.
Traditional failure of target, in Customs Department of Georgia, was partially blamed on ITS, which initiated the idea of interrupting the contract. After a month, the Ministry of State Revenues had established and young minister promised to solve the problem however invited the heads of company in Tbilisi. Earlier, minister Matchavariani was given the estimates by World Bank that assumed 7 months of company working in Georgia insufficient. Then on 31st of May 2000 Jan Williams and Matchavariani found a middle course and agreed to introduce certain changes in contract. Thus, everyone expected more from this meeting. Experts declare that both sides were doomed to fail at the very beginning. Thus, Matchavariani argued another, promising increase of customs revenues in case of implementing all of the changes within contract.
Since June, Customs Department broke the rules and outstripped the target. However, Customs do not consider it a merit of ITS. In June-July, the Ergneti fair had been closed, which noticeably effected budget parameters – the Ministry informs. Should be mentioned that Y1998 target of Customs had been implemented at 98%. ITS couldn’t change the infrastructure in Customs. For reforming customs, company should allocate 500 thousand laries however did not even a tetri. On each of questions, general director of ITS gives the sharp answer. Moreover, Bissett avoids all “blames”.
– At the meeting held in the Ministry of Revenues, both sides came to terms. However, Matchavariani remains the same, concerning interruption of contract.
– Minister did not express his negative appeal to the point at the meeting. We’ve come to an agreement – company remains in Georgia until the last date of contract.
– What are the changes concretely?
– First of all, conflict does no longer exist. Besides, British company will allocate 4% (approximately 700 thousand dollars) of incomes for reforming the customs system of Georgia.
– Ministry of State Revenues informs that company was owing to allocating 500 thousand laries for customs reforming, but didn’t.
– It’s a lie. Since 1999, ITS has spent approximately million dollars for perfecting the customs structure.
– Then how could you describe the position by Ministry?
– It’s a question to Matchavariani himself. Allocated for Customs amounts were employed by stage. On the first one, Customs have purchased the expensive auto vehicles. We’ve transferred the amounts, and it’s not the ITS problem, if amounts aren’t spent suitably.
– Customs have implemented Y1998 target at 98%. However, Customs aren’t going to consider it as a merit of ITS?
– If not ITS, then who does implement the inspection and mobilize the amounts for Budget? If not ours, then whose merit is the a.m. fulfillment?
– How could you explain the contradiction between you and Georgian side since your arrival?
– Georgia is the only country ITS faces the problem. We already inspect the import in 13 countries and none of them reproached us. Thereof, to my opinion, existing contradiction carries the political meaning.
– It means, someone is interested in your departure.
– Business, in Georgia, is closely related to government and thereof, there could be the forces disliking our work here.
– Who concretely?
– Unfortunately, I can’t answer that question.
– They say ITS has the status of looser in the world?
– You’re wrongly informed. In 1999, the income of company comprised 351 million pounds and profited 50 millions. Georgia is the only country ITS looses.
– Then why don’t you cancel the contract?
– We hope that by the end of year, company will profit even a little. If the year ends successfully, then we may think of remaining in Georgia an year more.