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Did the Tbilisi Development Fund legally function as a financial institution or as a charitable company?

Published: July 3, 2013 | 12:30 pm
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Did the Tbilisi Development Fund legally function as a financial institution or as a charitable company, and why did the Fund send 11 million GEL to the management company Dexus? The money was supposed to aid the rehabilitation and development properties managed by Dexus. The issue became public following the decision by the founders of Centre-Point to take the reins of their company back from Dexus.

The founders of Centre-Point had handed their company over to Dexus for management in 2010. They now view Dexus’s links to the Tbilisi Development Fund with suspicion, and speak about a misappropriation of funds. According to one of Centre-Point’s founders, none of the 11 million GEL collected by Dexus has been spent on the renovation works currently taking place on Saakadze Square, and the acquired responsibilities towards the population have not been fulfilled.

The Tbilisi Mayor’s Office has been unable to comment on the issue due to the head of the Development Fund currently being remanded in police custody. However, privately they say that the funds had been allocated to help the struggling Centre-Point, and were initially meant to be repaid by the company by 14 June. However, it has transpired that in the end, Centre-Point was freed from the obligation to repay the funds.

Dexus has also responded to TV3’s enquiries regarding the issue of the funds allocated from the Tbilisi Development Fund. The company’s founder Irakli Kilauridze states that the Mayor’s Office has been financing development projects both directly and through subsidiary funds for the past 5 years. He claims that Centre-Point had been unable to become involved in the programs due to its weak management. Mr. Kilauridze also states that the full sum of 11 million GEL taken from the Tbilisi Development Fund has been spent appropriately on rehabilitation projects, which is easy to verify.

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