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Metromoney’s Exclusive Deal with the Bank of Georgia

Published: June 26, 2013 | 10:18 am
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How lawful was it to grant the Bank of Georgia exclusive access to Metromoney’s services? The fast payment service company Nova Technology has appealed to the courts to make public the details of the tendering process, and the subsequent contract between Metromoney and the National Bank. According to Nova Technology’s attorney, the BOG gets to keep 3% of the funds obtained through Metromoney’s services, which in turn allows it to set a 0% commission tariff on mobile phone top-ups, thus placing it in a position of monopoly.
In response, the Bank of Georgia states that at the time when the tendering process for the purchase of banking services by the Metro was announced in 2006, neither Nova Technology, nor Oesempe had been on the local market yet, while the Bank itself has invested millions into modernising the service. This statement is echoed by the head of the financial department at the Tbilisi City Council, Tamaz Shoshiashvili, who states that Nova Technology’s accusations are baseless, since the Bank of Georgia won the 2006 bidding process in a fair manner, has invested up to 10 million GEL, and has been fulfilling all terms of the deal ever since.

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