WHERE IS BIG MONEY MADE?

IRAKLI TSINAMZGRISHVILI

DDifferent organisations and political parties have long tried to take control of “Tbilgas”, but in the long run it came to it that no one needs the joint stock company, everybody washed hands though some interests are still to be observed on the horizon: interests of off-shore transnational company “Itera” and its desire to take control of “Tbilgas” are still alive and voracious.

Despite the fact that care of the government higher echelons for population allegedly grew, gas tariff still collaterally increased in accordance with arithmetical progression. Higher echelons now consider reducing tariffs and tries to get rid of mediators between Itera and Tbilgas.
Owner of 96,05% of shareholding is still unknown. Either the municipality or state will eventually undertake this hard responsibility. Owners of the rest 3,95% is collectivity itself. Amortised and corroded networks, pipelines ready to burst and administrative building is on the balance of Tbilgas. The government worrying about the future of the object has long tried to find an owner of the metal buried in soil. Tbilgas privatisation process has started since 1998 and has never reached finish ever since.
Itera, Sakgas, A-gas, AES, Tahal and many other small and large companies did their best to take control of Tbilgas, but in vain. As it turned out, this game was limbering-up for some campaign. Meanwhile, Tbilgas debt reached more than 70 million GEL. National budget, Itera and other organisations are one of their creditors. We should also mention that the number of bank credits is kept in secret. Nor the credit line is transparent. According to some caustic remarks, these debts were accumulated artificially. Notwithstanding the numerous observations and visit of controlling agencies to Tbilgas, the subject of debt accumulation still remains unrevealed. Financial turnover of Tbilgas is kept in secret, too. The number of Tbilgas subscribers is presently 164 thousands though approximately 30 thousand subscribers are chronically switched off (because of faults, repair works, non-payment, etc.). Tbilgas resembles an unassailable fortress with directors coming and leaving and the president threatening, but the meeting is eventually cheerful with everybody sleeping peacefully in the swamp of corruption.
This is not the end of the problem
Nearing winter has never been favourable for the attraction of investors and investments in this object. The perplexed government criticises President’s order and intends to transfer Tbilgas to the ministry of energetics. The process was about to near its end when some anonymous forces “unearthed” the mystery to the President and advised him to return the bankrupt company to the newly elected Sakrebulo. The Sakrebulo and its leader Mikhail Saakashvili who was well informed about energy maphia, refused the President flatly (press conferences are said to be Saakashvili’s hobby).
Meanwhile, sudden colds in Russia prompted Gasprom punish Itera by economic sanctions. It reduces gas supply, which makes an adequate effect on the gas sector of Georgia and moreover, Tbilisi: Itera reduces pressure leaving a great part of Tbilisi population without gas, though for some time… Meanwhile, Armenian reserves contain only three months’ gas. No crisis is observed there. According to some information sources, gas price in the frontier amounts to 55 dollars (the tentative gas price is 49 dollars excluding transit costs) and 52 dollars in Azerbaijan. At the same time, according to Itera’s information, this sum – 53 dollars in Armenia plus 20% VAT – amounts to 66 dollars and 85-92,2 dollars in Azerbaijan and Iran frontier.
Tbilisi is in usual technical shock. The probability of accidents grows and the government holds secret operative meetings with the state minister without anyone’s knowledge. There is multitude of versions. Some talk about quick assignment of Tbilgas. Itera is considered the only non-alternative partner though according to information sources of Russia, the notorious Itera has many alternatives in Russia. Some say that lobbyist of non-alternative Itera in Georgia is a person related to Shevarnadze. The government will soon make a decision on the way Itera can take control of Tbilgas, but it remains unclear what use this will bring to population. As for population, it has to face constant change of tariffs. People do not care about who will become owner of Tbilgas; Everyman wishes to have gas as cheap as possible.
Gas consumption in winter makes up 2 million sq. meters per day though this quantity reduces in the background of political and economic problems.
Where did Sakgas come from? In the second half of 90s Russian-Georgian “community” forms Itera, on the one hand, and on the other hand, an off-shore company in the form of Bejuashvil-Saakashvili tandem with 50% belonging to the Georgian party. Sakgas is distributor of gas in Georgia distributing gas in the whole country (population is well aware of the way it works). For years names of Saakashvili and Bejuashvili never left the headlines of newspapers about gas. In the first session of Sakrebulo these persons were called gas magnates. The control chamber has also tried to investigate chaos and financial machinations in Sakgas, but no verdict has been passed. We suppose that in this case impunity syndrome results from either corruption or poor work of control agency. In this stage representatives of control agencies could only provide information on Moscow houses and cars of some persons. Bejuashvili-Saakashvili are said to have sold their share of Sakgas. Today no one speaks about the immunity of Parliament deputy and past “sins” of owner of Sakrebulo leader’s mantle. Yet, rumours of Saakashvili’s interest in Tbilgas go about in society. Illogical as it may seem, Saakashvili’s claims about the transfer of Tbilgas to the Municipality might turn out to be a bluff.
We should also mention contradiction between Sakgas and Saktransgas industry when Ivane Zazashvili, general director of Sakgastrans industry, spoke about pressure and obstructions in attracting potential investors. In fact, Sakgastrans industry does not exist any more. This can be viewed as a great achievement of anti-state political groups.
For information: Since 15 December Itera have once again left Sakgas in off-side. Though population’s tariff did not change, but Tbilgas might refuse network rehabilitation, which means work in fail-safe regime. This is necessary for Tbilgas and population in this stage. But it is unclear what the authorities and Makarov agreed on. Rumours say that Leonid Deikalo, chief of Sakgas, decided to go to court to make Sakgas pay fine for “missed days”. Besides, the President’s order about the return of Tbilgas to the municipality did not have a plan describing the issues of crisis management and financing. The date of agreement between Tbilgas and Sakgas expires on December 31. It contains three main points: up-front sum, 30% repayment of old debt as well as service and debt forgiveness. A new agreement will be made on January 1 and it is likely to be influenced by political decisions through pressure on Sakgas.
Profitability of Tbilgas is unimaginable even theoretically as no company can survive in the conditions of such tariff. What use does the Energy Regulation Commission of Georgia bring? its tariff policy exceeds all frames. Experts speak about the reserves in tariffs. Some say that if gas price does not reduce, there will be funds for the rehabilitation and development of the object. We would probably think that Tbilgas goes bankrupt purposefully so that in the spring we would see another hero – a profitable company that managed to pass a long distance. The control chamber and Internal Affairs Ministry have also managed to take control of political and economic pillars.
Does Sakrebulo need Tbilgas?
No one agrees to become partner of Tbilgas that stuck between the Municipality, Energetics and Property Control Ministries. The Municipality has up to now managed to run Tbilgas by means of Patarkatsishvili’s or banking credits. Conflict of Saakashvili and Zodelava can bring great problems to the city and population in particular. To experts’ and politicians’ mind, regaining Tbilgas would mean loss of portfolio for Saakashvili and strengthening of positions for Zodelava. The latest variant will help the President’s cabinet to acquire political dividends. It is yet difficult to say how Saakashvili, the spiritual leader of non-government organisations, will get over the thought of his loss as “nationalists” with off-shore eduction are supported by the West. If this happens, Federal Security Service might include an appropriate company in the distance of international tender. This might play a decisive role in the restoration of gas sector in the capital city and conceal contours of northern gas from the President. Mikhail Saakashvili is well aware of it and he is not going to give up his positions. This confusing situation might bring some profit to Tbilgas as well as to us. Tbilgas management makes confusing, but yet demagogic statements quite successfully. The management itself is unaware of why gas supply to Tbilisi is postponed. The reasons are different such as Itera, frostcleft pipeline in Isani-Samgori district, awakening of Etna and lack of water in Niagara. This is certainly a joke but as the proverb says many a true word is spoken in jest.
The only way for Tbilgas to survive is still its privatisation: there is a great chance that an apolitical, financially strong and experience of company might take an interest in Tbilgas and turn it into a profitable enterprise. There is another quite simple and expensive way – to have no gas supply. It is for the government to choose.