Saturday, November 24, 2012

Terminator on the rampage in Georgia? Zurab Zhvania, et.al.

Murdered with three gunshot wounds in Tbilisi

Terminator, US Embassy, on the rampage in Georgia?


Jeffrey Silveman November 23, Tbilisi Georgia - 43-year-old Avtandil Aduashvili was found
murdered this night in the back seat of his vehicle, ML class Mercedes
on Zaziashvili Street. The murdered had three gunshot wounds. The
locals say they didn't hear the gunshots (it sounds like his body was
taken and left where it was found).

I think this guy was in the construction and restaurant business. I don't know any more than that - just made me think a little about this
case, which is also somehow related to an ownership issue with the
Buddah Bar just across the river, where they're building that "Time
Tunnel" for Misha, Vano, and Gigi to escape to the past.

How curious that another person called Avtandil Aduashvili drowned in
Gori in July. Maybe there's a kind of "Terminator" thing going on, and
there's more to this Time Tunnel on Rike park than meets the eye. Maybe
they manage to go back and figure out that "someone" called Avtandil
Aduashvili must be eliminated for them to escape punishment for their
sins, so a terminator has come forward in time and is bumping off anyone
called Avtandil Aduashvili?

I think they're going to string Merabishvili along a bit and try to make
him sweat. Fat Misha already looks like a sweaty fat pig - and his
hair's going very gray now too.

They thought they had it all and resorted to such dirty tactics during
the election campaigning period because they were petrified of the
consequences if they lost, and everything they were afraid of is now
coming to pass. They haven't really started on the shonky deals (of dubious integrity or
legality) deals with mysterious companies which were set up to bid for
all these state tenders yet, or the big "murder" cases (Zurab Zhvania,
Buta Robakidze and Sandro Girgvliani). It is all starting to float to the top - sit back folks and enjoy the
show! YouTube - Videos from this email

-

Thursday, November 22, 2012

Just dying to tell the truth! "Hermes" Ltd" and preempted recriminations

Just dying to tell the truth! “Hermes” Ltd

Death a recession proof business for members of the United National
Party in Georgia? This sounds like a pre-emptive leak to me, allegations of a provocation
regarding “Hermes” Ltd, ... however, when all is said and done, must be
something in it. Of course, "the death business" is one of those
bullet-proof industries where you would expect the UNM cronies to have
their fingers in the pie, extracting their final pound of flesh from the
lives of the people they kept so poor and miserable.

http://www.interpressnews.ge/en/society/42509-bacho-dolidze--hermes-related-p...

Tbilisi City Hall speaks about a provocation regarding “Hermes” Ltd,
Tbilisi City Hall spokesperson Bacho Dolidze stated. He said a former
employee of “Hermes” provided him with the information and audio
recording about the expected provocation.

“The audio recording reveals that it is planned to spread false information about “Hermes” Ltd activity, as if the aforesaid Ltd sells cemeteries of people and transfers money paid by the grievers to personal accounts. It is also planned to stage a provocation against the employees. To discredit the Mayor, illegal activities may be committed by certain individuals, including journalists, aiming at misleading the public, organizing mass protests and provoke public worry”, Dolidze says.

Dolidze says that the Deputy Minister of Internal Affairs turned out to
be aware of this. He said they have sent the information to the
Prosecutor’s office of Georgia asking to investigate the truth regarding
this very sensitive issue. He also says that such a plan was already
carried out by the same people during the bus drivers’ protests. Tbilisi
City Hall calls on the population not to trust information of this sort.

Wednesday, November 21, 2012

Clearing up the mess in Georgia - in spite of outside interference! Philip Gordon and his Rasmussen!!!

"it's a dirty job but it's got to be done - just make sure you do it
properly and make it look good"
Phillip Gordon came here with his eyes wide open, fully aware, and he
would have been properly briefed (informed) by the US Ambassador who, as
we have seen, has been an almost daily visitor to Ivanishvili and cannot
possibly have been taken by surprise by these arrests. I think the
message from the Americans is clear: "it's a dirty job but it's got to
be done - just make sure you do it properly and make it look good".
As for others, Jose Barroso is just a complete cock who would side (take
the side) with the devil if it kept that stupid smug look on his face a
while longer, as are the rest of his EPP buddies who keep voting him
back in, e.g. Wilfried Martens and not forgetting that the UNM
themselves are affiliated to the EPP, as is John McCain's International
Republican Institute, IRI.
I think Mr. Rasmussen was just taken in (fooled) by Saakashvili, to be
honest. The NATO Sec. General is naturally more detached from the
reality of life in Georgia. Perhaps James Appathurai, Deputy Assistant
Secretary General for Political Affairs and Security Policy and NATO
Secretary General’s Special Representative for the Caucasus and Central
Asia, could have helped him prepare better so I'm sure some questions
need to be asked within NATO itself as there was a marked change in tone
from Rasmussen after he'd met with Ivanishvili.
I'm sure the Americans (State Department) know that the really big fish
are yet to be fried and the impeachment process has recently been
explained by the GYLA, Georgian Young Lawyers Association (someone
must've asked them?) but we may have to wait a while before we see any
direct moves against Saakashvili and Merabishvili. Pretty soon they'll be the only ones left anyway, not arrested but under
threat. I'm not so sure about Gigi Ugulava - I think his little stunt
where he tried to gatecrash the ministerial meeting may have moved him
up the batting order – and his days may be numbered too!
There's little doubt that they're all on the same list - powerful people
who thought they were untouchable. They only have such a voice now
because they still managed to rig the election somewhat - nobody likes
them (except themselves) and the more moderate UNM MPs would do well to
distance themselves from them and join the splinter group of
independents and think about their own political careers.
What we're seeing happening is the dissection of a regime which kept
themselves and their friends in houses and whores through intimidation,
fear, torture, sexual abuse, theft of property, political persecution,
corruption, and control of the media... you name it, they did it.
It's a bit rich of them (arrogant) complaining about getting caught.
They are acting as a bunch of cry babies. We have an expression in
America: “if you can’t do the time then don’t do the crime.”
I see they're going to charge Dato Akhalaia in absentia. Do they have
family rooms in prison? They'll need a suite if they can pin anything on
Roland – the Godfather of that clan.
NB - for Georgian Readers: Pin anything on – that means – to prove a
person guilty of something, in American legal slang – jailhouse law
dictionary

Friday, November 9, 2012

Bacho Akhalaia may “squeal like a pig” and loose-lips-sink-ships

Sounds like they've gone straight for Bacho's jugular - the restaurant
incident

As Akhalia’s lawyer Ioseb Janashia told InterPressNews, the case is
about the incident that took place in a restaurant. The lawyer doesn’t
specify the details, though says that Bacho Akhalaia doesn’t plead
guilty.

143rd article is quite serious, which carries about 12 year in prison,
Ioseb Janashia said.
http://www.interpressnews.ge/en/politics/42138-bacho-akhalaia-receives-charge...
Rather a muted statement there, following all the squealing of the past
couple of days.

The 4th part of the 143rd article of The Criminal Code of Georgia:
4. The action stipulated in Paragraphs 1 or 2 of this Article:
a) by an organized group;
b) that through negligence has claimed the life of the victim or has
given rise to any other grave consequence, - shall be punishable by
prison sentences ranging from eight to fifteen years in prison.
If this refers to the Sandro Girgvliani case then it begs the question -
will Vano Merabishvili and his wife get dragged along for the ride? Akhalaia is probably safer in prison than anywhere else, and first man
in gets to cut the deal. What he knows could sink a lot of ships, even
the flagship.
After his failed attempts to seek asylum overseas perhaps he felt his
safest bet was to come back to Georgia and put trust in his friends and
the criminal justice system he so respects (and squeal like a pig_?

Thursday, November 8, 2012

Bus Strike in Georgia is part of bigger end game - call it subterfuge!

Drivers of yellow buses went on strike. Jeffrey K. Silverman Three auto parks of the capital and over 1300 drivers participate in the
strike.
The drivers have 17-point demands. They demand improvement of labor
conditions and a salary increase. No buses are operating in Tbilisi and
citizens mainly travel by mini buses. The drivers say that this is a warning strike and if their demands are
not met the protest will be on a wide scale.

http://www.interpressnews.ge/en/society/42118-yellow-busses-on-strike-in-tbil...

Whoever is driving all of these strikes certainly don't have the best
interests of the country at heart. This is planned and malicious damage
to the economy - a crime against the state (and we all know which party
is behind it all).

The problem which the perpetrators face is that they are trying to now
play the victim before on audience which they have previously victimized
and held in fear. This is why they were thrown out of power and they
only got as many seats as they now have because they did their level
best to steal the election - you could probably factor in that about 20%
of their votes as having been garnered by illicit tactics during the
election campaign and poll.

These are criminals standing up for criminals. It is little wonder that
they are doing all of this - playing dirty - when they know what is
coming once the truth comes out following deeper investigation into the
deaths of such people as Prime Minister Zurab Zhvania, Sergo Tetradze,
and Sandro Girgvliani, among others, and into the large scale corruption
which has taken place involving the auction of state assets and
monopolistic tenders and the revolving doors at Tbilisi City Hall.

All of these people - Saakashvili, Merabishvili, Akhalaia, Ugulava,
Bokeria, Sharangias, etc. are the true thieves-in-law in Georgia - they
know it - the whole country knows it and what they are trying to do now
just will not wash, not with Georgians and not with the Americans or the
Europeans (except perhaps with the EPP).

The people became power-mad and their depravity is well known among the
Georgian people. The great danger here is if they succeed in their aim
to pull the wool over just a few western eyes with their propaganda and
tactics - at best widespread unrest and unexplained bombings - at worst
a civil war could break out.

For a truer picture of just what sort of people we are dealing with here
- this is how they are viewed by the Georgian on the street:

Where does the “broom” of prison 8 stem from?

Bus Strike in Georgia is part of bigger end game - call it subterfuge!

Drivers of yellow buses went on strike. Jeffrey K. Silverman Three auto parks of the capital and over 1300 drivers participate in the
strike.
The drivers have 17-point demands. They demand improvement of labor
conditions and a salary increase. No buses are operating in Tbilisi and
citizens mainly travel by mini buses. The drivers say that this is a warning strike and if their demands are
not met the protest will be on a wide scale.

http://www.interpressnews.ge/en/society/42118-yellow-busses-on-strike-in-tbil...

Whoever is driving all of these strikes certainly don't have the best
interests of the country at heart. This is planned and malicious damage
to the economy - a crime against the state (and we all know which party
is behind it all).

The problem which the perpetrators face is that they are trying to now
play the victim before on audience which they have previously victimized
and held in fear. This is why they were thrown out of power and they
only got as many seats as they now have because they did their level
best to steal the election - you could probably factor in that about 20%
of their votes as having been garnered by illicit tactics during the
election campaign and poll.

These are criminals standing up for criminals. It is little wonder that
they are doing all of this - playing dirty - when they know what is
coming once the truth comes out following deeper investigation into the
deaths of such people as Prime Minister Zurab Zhvania, Sergo Tetradze,
and Sandro Girgvliani, among others, and into the large scale corruption
which has taken place involving the auction of state assets and
monopolistic tenders and the revolving doors at Tbilisi City Hall.

All of these people - Saakashvili, Merabishvili, Akhalaia, Ugulava,
Bokeria, Sharangias, etc. are the true thieves-in-law in Georgia - they
know it - the whole country knows it and what they are trying to do now
just will not wash, not with Georgians and not with the Americans or the
Europeans (except perhaps with the EPP).

The people became power-mad and their depravity is well known among the
Georgian people. The great danger here is if they succeed in their aim
to pull the wool over just a few western eyes with their propaganda and
tactics - at best widespread unrest and unexplained bombings - at worst
a civil war could break out.

For a truer picture of just what sort of people we are dealing with here
- this is how they are viewed by the Georgian on the street:

Where does the “broom” of prison 8 stem from?

Wednesday, November 7, 2012

Well, Misha, what goes around comes around. You can't have it both ways!!!

Paybacks are hell in Georgia! Cold case murders heating up again!!!

In the wake of the arrests made of former Defence Minister Bacho
Akhalaia, Zurab Shamatava, the head of the 4th brigade of the armed
forces and Giorgi Kalandadze, the head of the Joint Staff, who stand
accused of verbally and physically and publicly assaulting a number of
military personnel, and in a clearly orchestrated yet somewhat
twitchy-assed attempt by the UNM to politicize the situation the
Parliamentary Minority have staged a walk-out from Parliament.

The problem is that no-one believes them anymore, and they well remember
Akhalaia's deep involvement in the notorious and, as yet, unresolved
case of the murder of Sandro Girgvliani, who was killed by former PM
Vano Merabishvili’s and Akhalaia’s allies.

Perhaps the UNM are most worried that Akhalaia's arrest will lead

http://www.interpressnews.ge/en/politics/42106-parliamentary-minority-suspend...

The Prosecutor’s Office today published the testimonies of several
witnesses, in which former employees of the Defence Ministry accuse
former Defence Minister Bacho Akhalaia, Zurab Shamatava, the head of the
4th brigade of the armed forces and
Giorgi Kalandadze, the head of the Joint Staff, of verbal and physical
abuse.

There were legal grounds for detention of former interior minister Bacho
Akhalaia and head of the Joint Staff Giorgi Kalandadze, Prime Minister
Bidzina Ivanishvili told journalists at the Courtyard Marriot hotel.

‘It was not a political detention and there were legal grounds for it. Everything took place within the law. I had not taken part in these processes and I can’t say anything more’, Ivanishvili said.

In his own thinly-veiled attack on the new Ruling Party President
Mikheil Saakashvili expressed his concern over the recent developments
and called on everyone to respect the rule of law and national
interests.

Well, Misha, what goes around comes around. You can't have it both
ways!!!

Many hidden motives for dockworkers strike in Porti Georgia

Motivations for strike run deep: a blessing in disguise in Poti Port,
Georgia

They seem intent on closing Poti." Who? Jeffrey Silverman I know the former head of the KGB there and much of the history of the
port; it is really nasty, intentional trafficking of everything, you
name they traffic it, and where the money came from to support Misha
Saakashvili back in 2003, and the so-called Our Adjaria Movement. Let's
too not forget about big connections with Moscow and Russian Military
Intelligence (GRU).

Might be something bigger going on here - and this is especially
connected to the Russian link, Barvil Shipping (flags of convenience),
and perhaps the government likes this situation too, and lots of dirty
things have been going on in Poti. Now is the perfect opportunity to let
the crap float to the top. We must not forget the cozy connection between this port, weapons
trafficking, drugs for weapons swaps, etc. In addition, don't forget
about the Georgian-Lebanese banana mafia too, and how they are all
screaming fowl these days, like a scared chicken. "They'll just have to ship stuff to somewhere else and drive it round
the coast if these people don't want to work. Their jobs could go to
Abkhazia or Turkey. They seem intent on closing Poti." Why? http://www.interpressnews.ge/en/region/42098-poti-port-completely-paralyzed.html

The strike continues at the Poti port. Port workers decided to resume
striking after they received a written response from the port
management. According to strikers, none of their demands were reflected in the
letter.

70% of the port employees have gone on strike for a week. The port is
completely paralyzed, they say.

It is still unknown what loss the port has suffered because of the
strike this week.

The management explained that this issue will be clarified after the
strike is over.

Ochamchira, an almost deserted port in Abkhazia, will probably soon
revive. In August, leader of Latvian expert group, Doctor of Economics
Uldis Osis submitted the program on building a deep-water sea port
surrounded by a free economic zone to Abkhaz authorities. The project
may change the entire economic situation in the region and thus
inevitably affect the Georgian-Abkhaz relationship. In an interview to
GeorgiaTimes, Georgian expert Giorgy Khukhashvili talked about what may
happen if large-scale economic projects are realized on both sides of
the border.

http://www.georgiatimes.info/en/interview/63710.html
The workers, who are being manipulated into cutting-off
their-own-noses-to-spite their faces; if they don't want to work than so
be it!

If they want to stop eating so be it - they won't need jobs and the
prisons won't be so full if all these hunger strikes are successful. I
wish them the best and it may be good for Georgia in the end.

Many hidden motives for dockworkers strike in Porti Georgia

Motivations for strike run deep: a blessing in disguise in Poti Port,
Georgia

They seem intent on closing Poti." Who? Jeffrey Silverman I know the former head of the KGB there and much of the history of the
port; it is really nasty, intentional trafficking of everything, you
name they traffic it, and where the money came from to support Misha
Saakashvili back in 2003, and the so-called Our Adjaria Movement. Let's
too not forget about big connections with Moscow and Russian Military
Intelligence (GRU).

Might be something bigger going on here - and this is especially
connected to the Russian link, Barvil Shipping (flags of convenience),
and perhaps the government likes this situation too, and lots of dirty
things have been going on in Poti. Now is the perfect opportunity to let
the crap float to the top. We must not forget the cozy connection between this port, weapons
trafficking, drugs for weapons swaps, etc. In addition, don't forget
about the Georgian-Lebanese banana mafia too, and how they are all
screaming fowl these days, like a scared chicken. "They'll just have to ship stuff to somewhere else and drive it round
the coast if these people don't want to work. Their jobs could go to
Abkhazia or Turkey. They seem intent on closing Poti." Why? http://www.interpressnews.ge/en/region/42098-poti-port-completely-paralyzed.html

The strike continues at the Poti port. Port workers decided to resume
striking after they received a written response from the port
management. According to strikers, none of their demands were reflected in the
letter.

70% of the port employees have gone on strike for a week. The port is
completely paralyzed, they say.

It is still unknown what loss the port has suffered because of the
strike this week.

The management explained that this issue will be clarified after the
strike is over.

Ochamchira, an almost deserted port in Abkhazia, will probably soon
revive. In August, leader of Latvian expert group, Doctor of Economics
Uldis Osis submitted the program on building a deep-water sea port
surrounded by a free economic zone to Abkhaz authorities. The project
may change the entire economic situation in the region and thus
inevitably affect the Georgian-Abkhaz relationship. In an interview to
GeorgiaTimes, Georgian expert Giorgy Khukhashvili talked about what may
happen if large-scale economic projects are realized on both sides of
the border.

http://www.georgiatimes.info/en/interview/63710.html
The workers, who are being manipulated into cutting-off
their-own-noses-to-spite their faces; if they don't want to work than so
be it!

If they want to stop eating so be it - they won't need jobs and the
prisons won't be so full if all these hunger strikes are successful. I
wish them the best and it may be good for Georgia in the end.

Monday, November 5, 2012

Oil, Property and Dirty Politics in Batumi, 2003 onwards, till now!?

-Oil, Property and Dirty Politics in Batumi, 2003 onwards, till now!?
Jeffrey K. Silverman

Recent text in Georgian, translated, as received, 5/11/2012,
Batumi-Tbilisi, Georgia

"When I told you to write about this - that appointing Bacho Akhala,
(his mafia clan) as so called special envoy, or Vera Kobalia (sexy
tourism minister), or Levan Varhsalomidze, head of the region, and the
Batumi City Mayor and so on to government posts would undermine the
reputation of the United States - you as a journalist did not
understand what a serious mistake this was … now you see the result, and you can read more, otherwise nothing will change…. the fact that
you could not make, or publish, the correct analysis - that President
Misha Saakashvili was a robber and the government involved in elite
corruption – the fact you did not write this means you supported
them, and you and those like you are hindering the development of my
country. “So many different funds were allocated by our friends for the reconstruction of our country – all were stolen. Even today you are not writing about this openly. For what purpose are you here in Georgia? Why are you publishing foolishness like this, and looking for someone to blame, when so many crimes are being committed and you are not saying anything about them. This means you are promoting the criminals who are waiting to see how the new, normal government will make them suffer… “You had better tell the truth!
“Let people see that the United States and Americans fight for truth and/or justice; you must present an honest and unbiased face, you must show Georgians that you are sincerely serving them… This is not Azerbaijan, or Armenia, or Russia, this is Georgia, and do not forget this…"
Response: 5/12/2012
As I wrote to a person in the US Embassy at the time, political officer
or cultural attaché
Here we are talking about Batumi only, let us talk first! … and then the energy connections, which are really interesting and much more serious. I will send more soon, and in the background keep in mind the activities of Zurab Zhvania, the former Georgian Prime Minister, and his “untimely” and “most convenient” death. There has always been speculation behind the scenes that there was a Batumi connection with the murder of Zurab Zhvania, due to his efforts to build a government within a government. There is more this than mere speculation, as you and the US Embassy know, even better than me.
Zhvania’s storied history also includes being part of the network of
those involved with the Georgian Shipping Company, his alleged
percentage on each ton of scrap metal exported from Georgia and his
close relations with power brokers and mafia types.
There are also many Kazakh connections to Georgia, especially to
unrecorded exports of oil from Batumi and Poti, West Georgia, which are
also connected to the Batumi Oil Terminal and key players in political
and business circles. The port of Batumi, and especially the political
network of friends and stakeholders within the Batumi oil terminal,
were, and continue to be, the gateway for the little empire belonging to
Aslan and his erstwhile supporters. It is no secret that the real owners of the terminal are also the same
people who were involved in the flurry of recent privatizations and
investment in the "official" post-Aslan Abshadze period.
I learned in passing from a Georgian woman who worked for several years
with the Georgian shipping company that the relationship between Zaza
Gelashvili and Davitadze, the former head of the local intelligence
services in the post-Rose Revolution period, was very close. My source's
connection with him is that she once dated his son, or was a schoolmate
of Davitadze’s son. She is now ___ years old and knows most of the inner
circle of Aslan Abshadze, including Tengiz Arshba and Soso Gogitidze
(KGB chief under Aslan); another Gogitidze, Jemal, was police chief
under Aslan. The deceased wife of Aslan was mother of Gogitize's brother
and now lives in Moscow. However, many of his frontline troops are
still in Georgia and have found employment in the new government.
Zaza Gelashvil is also alleged to be working for the Russian
intelligence Services, and especially for the Mayor of Moscow, Yuri
Luzhkov, personally; his father is on his personal staff (inner circle).
I am told by one of my main sources that all information on operations
being undertaken in Georgia by the Americans and Turks is being provided
directly to the Russian FSB and GRU (military intelligence). Zaza is
presently assigned to personally watch over Levan Varshalomidze (the
Presidential special envoy and first man in Adjaria) and making sure he
does not make too many stupid mistakes or side deals, or lets outsiders,
the non-connected, know too much of what is going on with him and his
family interests.
Naturally such things could compromise Russian interests and the
financial interests of various Kremlin insiders, and especially the
former first family of Adjara. It seems that most of what is happening
in Adjara is being done in support of Russian policy in Georgia.
Returning to Zaza Gelashvili, the source says that all information on
the Central government and what is going on in Adjara is being provided
directly to Moscow. I have used XXXXX before, and he was the former head
of XXXX KGB and on the side of Saakashvili in the days prior to the
downfall and exit of Aslan.
We knew then, as it is better understood now, that this too was a staged
performance for the media and that a deal had been cut for Aslan to
depart, but on the terms that it would be hands off for financial
investments in Georgia, and that connects back to the Batumi oil
terminal. Then came the privatisation process, for which locals did not need to
apply. Adjara did not privatise property as did other regions of
Georgia. That is why so much was available - at one time Adjara was
overripe for the picking, like an old virgin locked away in a prison
colony.


Attachments:
Find two rough files about weapons, also about corruption in Batumi and
connections with Moscow, intelligence services, etc. Kazakhs are really
Russians - a front (to buy up things), and wash money. Here is what will
get you started, you can write this up as an interview and ask me
questions as to my sources and how I know all of this (but I am not
going to give the names of important sources they may end up dead). At the end, write that this is solely the opinion of the source, and
must be framed within the local knowledge of an American journalist,
Jeffrey Silverman, who has lived for 18 years in Georgia and the former
Soviet Union.

What is here is about Batumi only, let us talk first! There is a long and established connection between Central Asia and
Adjara and drug dealing and oil shipments by rail. This is common
knowledge, and these connections may go deeper than the Batumi port. The
networks involving Aslan Abashidze, Central Asia and drugs-for-weapons
swaps are another well-established fact and these networks are now even
better established. With the increase in poppy crop in Afghanistan,
there will probably be an even greater flow of drugs via Georgian ports,
and drug processing, and the many of the main players are still in
place.
Kazakhstan - This background information comes from Central Asia, and
will provide you with insight on how scared people are of the investment
climate and how probable it is that Kazakhs are being used as fronts for
Russian special interests. What is harder is to find someone inside
Kazakhstan with info and insights. This is a bit of feedback received on September 7, 2006: "I just met a guy here, Leo, and I think he could help you. He was
writing articles for the Almaty Herald not long ago. He told me a few
minutes ago that he doesn't work there anymore. He was not clear about
it, but I inferred that this is for political reasons. When I asked him
if he could help you with info on Kazakh investors in Georgia he said,
"Excuse me, I have a class at 10 and I have to go…" Classical reaction
from Eurasians… He was afraid of talking about connections and this
subject."

Family Connections and Links
The father of the new KGB chief works directly for Yuri Luzhkov, Mayor
of Moscow, and alongside Iosif Orjonikidze, the owner of Medea Hotel and
the sports stadium and one of the deputies of the Mayor of Moscow,
business in Adjara continues as usual. A source explains:
"Iosif is something and he has at least two hotels and is a key advisor
to Yuri Luzkkov (he lives and works in Moscow). These are two of the
hotels where refugees had lived, and were evacuated from, in the last
few months before the properties were privatized. The residents, were
given 7,000 per room and tossed from the hotels (and that amount is not
enough to buy anything (i.e. a flat) in this market).

Who owns what? Only the inner circle knows who the real owners of these properties are,
and this is what I have been able to tap from this information source,
and this only to a limited degree. I have networked with persons
working in local government, the city planner, city architect - the
latter tells me that according to acting Georgian legislation, all
deals must be transparent, and only under the terms of tenders can a
project and proposed design for properties be drawn up. These plans
must even be publicly posted, and this was done in the case of the
Intourist hotel and other flogged off properties (especially those sold
to Ukrainians), and the correct procedures were followed with most
properties, with the notable exception of the so-called Kazakh
purchases. It is clear from the various sources that things are being
done in two directions:
Russian interests and personal financial interests

Real Estate Market
Intourist – some Turks run the place under a 10 year contract, but it is
owned by Aslan and his brother-in-law. I was told that the paperwork is
under the name of Murat Turmadidze, a local. Murat is very close to
Aslan and his cronies.

The hotels Medea and Meskheti were privatised into the hands of Mr.
Iosef Orjonikidze, Vice-Mayor of Moscow city.
Pushkin Street Trade Centre – a large trade centre, also belonging to
Aslan (don't know what is on the paperwork). Aslan has a sense of humor,
and so changed its name to "Moscow Trade Centre".

Tea House – the former Ministry for State Security or Police, near the
port, owned by Tengiz Arshba, member of the Russian Duma, owner of a
Russian sports team and weapons dealer, who is tied in with exports via
Vicktor Bout and other contractors. Very experienced at arms smuggling
and human intelligence, he is “alleged” to have the rank of General in
the Russian FSB.

Interclub - "this is the old name" - and next to property above, also
belongs to Arshba.
The old police headquarters - this is owned by Tengiz Arshba, close to
the new government in Adjara; he regularly plays tennis with Levan
Varshalomidze at the Marina Hotel and Sports complex. They have been
seen playing several evenings, and this is confirmed by several sources,
including those who practice tennis with Tengiz.

Aslan's Kindergarten is also said by the same sources to be owned by
Tengiz Arshba. Arshba is the main player in Batumi, and his brother is
tied in with the breakaway region of Abkhazia. However, this property is
also said to belong to the Kazakhs.
Marina Hotel and Sports Complex – owned by Arshba (40 percent), some
unknown MP (but think it is Jemal Inalishvali, Vice Speaker of the
Georgian Parliament and head of the Georgian Chamber of Commerce, former
head of Poti Port, 30 percent) and Levan Varshalomidze. The Georgian
Minister of Privatisation may also have a share in, or at least
financially benefited from, all of these deals, says the source; this
history and the connections of these players are like a barrel of
fishhooks.

Universalmag (Universal Trade Centre) – also said to be owned by Kazakhs
– this is being torn down right now, and is also close to the port and
located on prime real estate.
Red Fisherman Market and Shipping Company, two properties in very close
proximity – Kazakhs are claimed to have purchased these lots.

"Mtsvane Kontskhi" (Green cape) was privatized into the hands of Mr.
Iosef Orjonikidze, Vice Mayor of Moscow, in the form of 10 properties in
the Green Cape Nature Area. I stayed in one for these properties for two
nights (one actually owned by Kazakhs). I am currently waiting to
receive a list of these properties from the source, and some paperwork.
However, one staff member told me that they were all losing their jobs,
and this would be their last year, since the Kazakhs would be coming for
next season and would hire all their own staff.
I was told by one of the staff that the purchase price of these 10
hotels was 1 million dollars, and this paid for the whole nine yards
(lock, stock and barrel). It is clear that these properties could have
been sold individually for higher prices, and some of them were
operating with a profit and not in the red.

Tsikhisdziri - privatized into the hands of Tina Kandelaki, TV anchor
on Russian television and radio. She is half Armenian; used to work for
the 2nd Georgian TV channel. Don't know if this is actually her own
investment. Otherwise, perhaps to show that the Kazakhs are not buying
up everything; some properties have been sold to Ukrainians and some to
Turks, and with these properties everything is said to have been
transparent with the plans and proposals for development submitted with
the tenders. However, these properties are not the same as ocean side
real estate. Included in this partial list of properties is:

Properties near the Makhinjauri Railway Station, the partially completed
new train station which will probably not be finished (Ukraine);
HOPA Bazaar, not far from the Turkish Border (Ukraine).

Analysis and Commentary

Not even those who are supposed to be in the know about who owns what
and all the things going on in Batumi are sure of anything. The
so-called Kazakh investors are coming to be known, as is what still
belongs to the old team which was "run-out-of-town" and it is known
that the Kazakhs are really a combination of the Russians and the "old
team" and the "old money" from the family business in the fiefdom of
Adjara. Kazakh is a description used for public consumption. It is
likely that only those very close to Levan Varshalomidze and the
Georgian Minister of Privatisation in Tbilisi really understand the full
story. It is possible that those in the know include Saakashvili in
these deals as well. As previously noted, Levan Varshalomidze and
President-elect Saakashvili were college mates and studied together in
Kiev. Family and friendship connections are strong in Georgia and even
stronger when money is involved. Guram Varshalomidze, father of Levan,
was Prime Minister of Adjara under Aslan and they stole money together
over the years.

Levan was also connected with, but stole some money from, Aslan, and
this act officially put him on the outside with Aslan. He was not thrown
completely away, but this standoff due to him getting caught with his
hand in the cookie jar was enough to give them the opportunity to
present him as being close to the National Party and Saakashvili for
political consumption. Aslan Abshadze and those with him in fact own the
properties Kazakhs theoretically own. Those closest to him, and these
include the members of his Russian and mafia networks of patronage, are
also owners of these properties. It is difficult to comprehend how all
this can go on without the Central government knowing, unless this was
part of the deal over Adjara in the first place.
You must do an internet search and see what I have published and who is
reading it, as the mainstream media and Georgian media outlets,
including those in English, are owned and controlled by those close to
the US Embassy and those close to the National Movement. All that is necessary for policymakers to know is known, and I have told you on many
occasions that only Georgia can solve its problems - and that Western
countries and organizations only want to use Georgia for their own
direct purposes. All this goes back a long way, and watch tonight on
Maestro, and as before little by little the truth is coming out - we
know who has stood behind all of this, and that there was a government
being set up inside a government. We know what the program is for Georgia, and how it is not designed with
the best interests of Georgians in mind. Look at the work done on May
26, 2012, and then the report of the Young Lawyers Association, and how
that was not acted upon. Keep your eye on the connections between the
Black Sea and the big picture of things, ports and weapons transfers, as
that is where the next story is - and if Georgia is not careful, it will
lead to the destruction of this country and a “big: Russian win. I know
very well that Georgia is not the other countries you mention and that
is why I hold on to some hope. We have both been beaten for what you say
and what I write.

Oil, Property and Dirty Politics in Batumi, 2003 onwards, till now!?

-Oil, Property and Dirty Politics in Batumi, 2003 onwards, till now!?
Jeffrey K. Silverman
Recent text in Georgian, translated, as received, 5/11/2012,
Batumi-Tbilisi, Georgia
"When I told you to write about this - that appointing Bacho Akhala,
(his mafia clan) as so called special envoy, or Vera Kobalia (sexy
tourism minister), or Levan Varhsalomidze, head of the region, and the
Batumi City Mayor and so on to government posts would undermine the
reputation of the United States - you as a journalist did not
understand what a serious mistake this was … now you see the result, and you can read more, otherwise nothing will change…. the fact that
you could not make, or publish, the correct analysis - that President
Misha Saakashvili was a robber and the government involved in elite
corruption – the fact you did not write this means you supported
them, and you and those like you are hindering the development of my
country. “So many different funds were allocated by our friends for the reconstruction of our country – all were stolen. Even today you are not writing about this openly. For what purpose are you here in Georgia? Why are you publishing foolishness like this, and looking for someone to blame, when so many crimes are being committed and you are not saying anything about them. This means you are promoting the criminals who are waiting to see how the new, normal government will make them suffer… “You had better tell the truth!
“Let people see that the United States and Americans fight for truth and/or justice; you must present an honest and unbiased face, you must show Georgians that you are sincerely serving them… This is not Azerbaijan, or Armenia, or Russia, this is Georgia, and do not forget this…"
Response: 5/12/2012
As I wrote to a person in the US Embassy at the time, political officer
or cultural attaché
Here we are talking about Batumi only, let us talk first! … and then the energy connections, which are really interesting and much more serious. I will send more soon, and in the background keep in mind the activities of Zurab Zhvania, the former Georgian Prime Minister, and his “untimely” and “most convenient” death. There has always been speculation behind the scenes that there was a Batumi connection with the murder of Zurab Zhvania, due to his efforts to build a government within a government. There is more this than mere speculation, as you and the US Embassy know, even better than me.
Zhvania’s storied history also includes being part of the network of
those involved with the Georgian Shipping Company, his alleged
percentage on each ton of scrap metal exported from Georgia and his
close relations with power brokers and mafia types.
There are also many Kazakh connections to Georgia, especially to
unrecorded exports of oil from Batumi and Poti, West Georgia, which are
also connected to the Batumi Oil Terminal and key players in political
and business circles. The port of Batumi, and especially the political
network of friends and stakeholders within the Batumi oil terminal,
were, and continue to be, the gateway for the little empire belonging to
Aslan and his erstwhile supporters. It is no secret that the real owners of the terminal are also the same
people who were involved in the flurry of recent privatizations and
investment in the "official" post-Aslan Abshadze period.
I learned in passing from a Georgian woman who worked for several years
with the Georgian shipping company that the relationship between Zaza
Gelashvili and Davitadze, the former head of the local intelligence
services in the post-Rose Revolution period, was very close. My source's
connection with him is that she once dated his son, or was a schoolmate
of Davitadze’s son. She is now ___ years old and knows most of the inner
circle of Aslan Abshadze, including Tengiz Arshba and Soso Gogitidze
(KGB chief under Aslan); another Gogitidze, Jemal, was police chief
under Aslan. The deceased wife of Aslan was mother of Gogitize's brother
and now lives in Moscow. However, many of his frontline troops are
still in Georgia and have found employment in the new government.
Zaza Gelashvil is also alleged to be working for the Russian
intelligence Services, and especially for the Mayor of Moscow, Yuri
Luzhkov, personally; his father is on his personal staff (inner circle).
I am told by one of my main sources that all information on operations
being undertaken in Georgia by the Americans and Turks is being provided
directly to the Russian FSB and GRU (military intelligence). Zaza is
presently assigned to personally watch over Levan Varshalomidze (the
Presidential special envoy and first man in Adjaria) and making sure he
does not make too many stupid mistakes or side deals, or lets outsiders,
the non-connected, know too much of what is going on with him and his
family interests.
Naturally such things could compromise Russian interests and the
financial interests of various Kremlin insiders, and especially the
former first family of Adjara. It seems that most of what is happening
in Adjara is being done in support of Russian policy in Georgia.
Returning to Zaza Gelashvili, the source says that all information on
the Central government and what is going on in Adjara is being provided
directly to Moscow. I have used XXXXX before, and he was the former head
of XXXX KGB and on the side of Saakashvili in the days prior to the
downfall and exit of Aslan.
We knew then, as it is better understood now, that this too was a staged
performance for the media and that a deal had been cut for Aslan to
depart, but on the terms that it would be hands off for financial
investments in Georgia, and that connects back to the Batumi oil
terminal. Then came the privatisation process, for which locals did not need to
apply. Adjara did not privatise property as did other regions of
Georgia. That is why so much was available - at one time Adjara was
overripe for the picking, like an old virgin locked away in a prison
colony.


Attachments:
Find two rough files about weapons, also about corruption in Batumi and
connections with Moscow, intelligence services, etc. Kazakhs are really
Russians - a front (to buy up things), and wash money. Here is what will
get you started, you can write this up as an interview and ask me
questions as to my sources and how I know all of this (but I am not
going to give the names of important sources they may end up dead). At the end, write that this is solely the opinion of the source, and
must be framed within the local knowledge of an American journalist,
Jeffrey Silverman, who has lived for 18 years in Georgia and the former
Soviet Union.
What is here is about Batumi only, let us talk first! There is a long and established connection between Central Asia and
Adjara and drug dealing and oil shipments by rail. This is common
knowledge, and these connections may go deeper than the Batumi port. The
networks involving Aslan Abashidze, Central Asia and drugs-for-weapons
swaps are another well-established fact and these networks are now even
better established. With the increase in poppy crop in Afghanistan,
there will probably be an even greater flow of drugs via Georgian ports,
and drug processing, and the many of the main players are still in
place.
Kazakhstan - This background information comes from Central Asia, and
will provide you with insight on how scared people are of the investment
climate and how probable it is that Kazakhs are being used as fronts for
Russian special interests. What is harder is to find someone inside
Kazakhstan with info and insights. This is a bit of feedback received on September 7, 2006: "I just met a guy here, Leo, and I think he could help you. He was
writing articles for the Almaty Herald not long ago. He told me a few
minutes ago that he doesn't work there anymore. He was not clear about
it, but I inferred that this is for political reasons. When I asked him
if he could help you with info on Kazakh investors in Georgia he said,
"Excuse me, I have a class at 10 and I have to go…" Classical reaction
from Eurasians… He was afraid of talking about connections and this
subject."
Family Connections and Links
The father of the new KGB chief works directly for Yuri Luzhkov, Mayor
of Moscow, and alongside Iosif Orjonikidze, the owner of Medea Hotel and
the sports stadium and one of the deputies of the Mayor of Moscow,
business in Adjara continues as usual. A source explains:
"Iosif is something and he has at least two hotels and is a key advisor
to Yuri Luzkkov (he lives and works in Moscow). These are two of the
hotels where refugees had lived, and were evacuated from, in the last
few months before the properties were privatized. The residents, were
given 7,000 per room and tossed from the hotels (and that amount is not
enough to buy anything (i.e. a flat) in this market).
Who owns what? Only the inner circle knows who the real owners of these properties are,
and this is what I have been able to tap from this information source,
and this only to a limited degree. I have networked with persons
working in local government, the city planner, city architect - the
latter tells me that according to acting Georgian legislation, all
deals must be transparent, and only under the terms of tenders can a
project and proposed design for properties be drawn up. These plans
must even be publicly posted, and this was done in the case of the
Intourist hotel and other flogged off properties (especially those sold
to Ukrainians), and the correct procedures were followed with most
properties, with the notable exception of the so-called Kazakh
purchases. It is clear from the various sources that things are being
done in two directions:
Russian interests and personal financial interests
Real Estate Market
Intourist – some Turks run the place under a 10 year contract, but it is
owned by Aslan and his brother-in-law. I was told that the paperwork is
under the name of Murat Turmadidze, a local. Murat is very close to
Aslan and his cronies.
The hotels Medea and Meskheti were privatised into the hands of Mr.
Iosef Orjonikidze, Vice-Mayor of Moscow city.
Pushkin Street Trade Centre – a large trade centre, also belonging to
Aslan (don't know what is on the paperwork). Aslan has a sense of humor,
and so changed its name to "Moscow Trade Centre".
Tea House – the former Ministry for State Security or Police, near the
port, owned by Tengiz Arshba, member of the Russian Duma, owner of a
Russian sports team and weapons dealer, who is tied in with exports via
Vicktor Bout and other contractors. Very experienced at arms smuggling
and human intelligence, he is “alleged” to have the rank of General in
the Russian FSB.
Interclub - "this is the old name" - and next to property above, also
belongs to Arshba.
The old police headquarters - this is owned by Tengiz Arshba, close to
the new government in Adjara; he regularly plays tennis with Levan
Varshalomidze at the Marina Hotel and Sports complex. They have been
seen playing several evenings, and this is confirmed by several sources,
including those who practice tennis with Tengiz.
Aslan's Kindergarten is also said by the same sources to be owned by
Tengiz Arshba. Arshba is the main player in Batumi, and his brother is
tied in with the breakaway region of Abkhazia. However, this property is
also said to belong to the Kazakhs.
Marina Hotel and Sports Complex – owned by Arshba (40 percent), some
unknown MP (but think it is Jemal Inalishvali, Vice Speaker of the
Georgian Parliament and head of the Georgian Chamber of Commerce, former
head of Poti Port, 30 percent) and Levan Varshalomidze. The Georgian
Minister of Privatisation may also have a share in, or at least
financially benefited from, all of these deals, says the source; this
history and the connections of these players are like a barrel of
fishhooks.
Universalmag (Universal Trade Centre) – also said to be owned by Kazakhs
– this is being torn down right now, and is also close to the port and
located on prime real estate.
Red Fisherman Market and Shipping Company, two properties in very close
proximity – Kazakhs are claimed to have purchased these lots.
"Mtsvane Kontskhi" (Green cape) was privatized into the hands of Mr.
Iosef Orjonikidze, Vice Mayor of Moscow, in the form of 10 properties in
the Green Cape Nature Area. I stayed in one for these properties for two
nights (one actually owned by Kazakhs). I am currently waiting to
receive a list of these properties from the source, and some paperwork.
However, one staff member told me that they were all losing their jobs,
and this would be their last year, since the Kazakhs would be coming for
next season and would hire all their own staff.
I was told by one of the staff that the purchase price of these 10
hotels was 1 million dollars, and this paid for the whole nine yards
(lock, stock and barrel). It is clear that these properties could have
been sold individually for higher prices, and some of them were
operating with a profit and not in the red.
Tsikhisdziri - privatized into the hands of Tina Kandelaki, TV anchor
on Russian television and radio. She is half Armenian; used to work for
the 2nd Georgian TV channel. Don't know if this is actually her own
investment. Otherwise, perhaps to show that the Kazakhs are not buying
up everything; some properties have been sold to Ukrainians and some to
Turks, and with these properties everything is said to have been
transparent with the plans and proposals for development submitted with
the tenders. However, these properties are not the same as ocean side
real estate. Included in this partial list of properties is:
Properties near the Makhinjauri Railway Station, the partially completed
new train station which will probably not be finished (Ukraine);
HOPA Bazaar, not far from the Turkish Border (Ukraine).
Analysis and Commentary
Not even those who are supposed to be in the know about who owns what
and all the things going on in Batumi are sure of anything. The
so-called Kazakh investors are coming to be known, as is what still
belongs to the old team which was "run-out-of-town" and it is known
that the Kazakhs are really a combination of the Russians and the "old
team" and the "old money" from the family business in the fiefdom of
Adjara. Kazakh is a description used for public consumption. It is
likely that only those very close to Levan Varshalomidze and the
Georgian Minister of Privatisation in Tbilisi really understand the full
story. It is possible that those in the know include Saakashvili in
these deals as well. As previously noted, Levan Varshalomidze and
President-elect Saakashvili were college mates and studied together in
Kiev. Family and friendship connections are strong in Georgia and even
stronger when money is involved. Guram Varshalomidze, father of Levan,
was Prime Minister of Adjara under Aslan and they stole money together
over the years.
Levan was also connected with, but stole some money from, Aslan, and
this act officially put him on the outside with Aslan. He was not thrown
completely away, but this standoff due to him getting caught with his
hand in the cookie jar was enough to give them the opportunity to
present him as being close to the National Party and Saakashvili for
political consumption. Aslan Abshadze and those with him in fact own the
properties Kazakhs theoretically own. Those closest to him, and these
include the members of his Russian and mafia networks of patronage, are
also owners of these properties. It is difficult to comprehend how all
this can go on without the Central government knowing, unless this was
part of the deal over Adjara in the first place.
You must do an internet search and see what I have published and who is
reading it, as the mainstream media and Georgian media outlets,
including those in English, are owned and controlled by those close to
the US Embassy and those close to the National Movement. All that is necessary for policymakers to know is known, and I have told you on many
occasions that only Georgia can solve its problems - and that Western
countries and organizations only want to use Georgia for their own
direct purposes. All this goes back a long way, and watch tonight on
Maestro, and as before little by little the truth is coming out - we
know who has stood behind all of this, and that there was a government
being set up inside a government. We know what the program is for Georgia, and how it is not designed with
the best interests of Georgians in mind. Look at the work done on May
26, 2012, and then the report of the Young Lawyers Association, and how
that was not acted upon.
Keep your eye on the connections between the Black Sea and the big
picture of things, ports and weapons transfers, as that is where the
next story is - and if Georgia is not careful, it will lead to the
destruction of this country and a “big: Russian win. I know very well
that Georgia is not the other countries you mention and that is why I
hold on to some hope. We have both been beaten for what you say and
what I write.

Saturday, November 3, 2012

Corruption Stories that nobody wanted to hear in Georgia, especially the US Embassy!

--

Stories that nobody wanted to hear in Georgia:

“history of corruption that never ends”





Dairy of a muckraker: 

Jeffrey K. Silverman


Here are several areas that I interested in writing about, including the full story of Roddy Scott and what has really happened in Pankisi, the motivation, and especially his networking with Chechen fighters.




Here is a cross section of the areas that I have been working in the last few years. Hopefully you may have some better contacts in finding a home for such articles. Please feel free to work this over as you feel fit in making a pitch to Time or Newsweek. Things are a bit slow now, until Bush bombs Iraq and the timing might be right.



I shall look forward to working with you on some of these and other stories in the future.



Pankisi and Geopolitics



Georgia lies in a region where there are many unexploded zones of conflict and is it possible by helping the Georgia the United States and others are in fact doing more to tear it apart. Media reports are often written from a distance and much of what is published is not true. Everybody has been talking about the Pankisi "Gorge," and lying about it.



When you are a journalist it very important to see a situation close and not to trust what you have read in the media or heard. People and countries have many reasons to lie about a situation, and by having been to Pankisi several journalist have information that contradicts what is being reported in the West.



Roddy Scott, a killed British journalist who wrote in response to an unedited article that was later published by the Eurasianet ,"Walk in the Country" about the situation in the Pankisi gorge, "I personally think it’s a great story, its about the first time I have ever seen the possibility for someone to really lift the lid on everything, rather than the usual 'journo-grasping-at-straws-with-no-good-sources' which seems to emanate from the region. And what really gives it the boost is that it is tied into US policy, which gives it the international rather than local/parochial flavor.



Corruption, Money Laundering and NGOs



Much is spoken of corruption but little is heard about actually fighting corruption in Georgia. Nevertheless, anyone who knows anything about Georgia understands that corruption is a plague that must be eradicated for this country to make true progress.



Newspapers publish countless stories on the topic. However, corruption in international organizations is a special problem that has rarely been addressed, because the media here is afraid of embarrassing international assistance efforts to which such a debt of gratitude is owed.



Case studies Potemkin Associations – NGOs



“Case study” Take for example a network of credit unions founded by ACDI/VOCA, which is an US based private nonprofit international Development that has been working in Georgia since 1993 with USDA/ USAID funding. Loans are provided to commercial wheat producers and these are reflected in the Tbilisi headquarter books as being for one year. However, actual loans are made for 10 months, which matures in the middle of the wheat-harvesting season when prices are substantially lower. If a farmer does not want to be late in payments, which will disqualify them for future loans, then they must sell the wheat for less than if they would have waited if they for two to three months more. The credit union profits when farmers sell beyond the 10-month period by imposing fines on peasant farmers, adding a little extra margin to the bottom line. Some farmer would like to mill the wheat into flour and make an extra margin from the value-added processing.



What is interesting is that it appears that staff members, elected representatives of the members themselves, i.e., the “supervisory board” of the credit association are in fact middlemen, wheat brokers. This information is supported by discussions with several farmers in East Georgia, and having access to copies of one contract that was signed in Georgian and English languages, which clearly demonstrates the level of thought and organization that has gone into this instance of corruption. If farmer complains about being forced into a marketing corner, or is late in payment, beyond the 10-month maturity date, then that farmer is refused future loans and this makes it almost impossible to plant a new crop. A local credit manager, assistant credit manager and bookkeeper carry out day to day management and the process is supported by other support personnel in Tbilisi who oversee the local credit unions.







However, there is much more below the surface than meets the eye, based on discussions with some key persons in the Georgian Ministry of Agriculture. One of the main problems is that staff, especially in the beginning. The problem is that ACDI/VOCA gives lots of control to their credit union Field Managers. These Field Managers are not hired based on their knowledge of credit and loan analysis but rather because of their "ties within the local community." In other words, these people are often chiefs of the local tax inspectorate, former local administration executives, or other influential local politicians. They are hired to be able to force the farmers to pay.



Case Study of Corruption in International Development: UMCOR and UNDP Festival of Corruption: UMCOR’s (United Methodist Committee on Relief) Implementation of The 1996-1998 UNDP Income Generation Project



UMCOR received in the neighborhood of $160,000-$200,000 (this is what source remembers) from the UNDP to make a combination of grant plus no-interest loans to four separate organizations. Each organization received $40,000-$50,000, of which $20-25 K had to be repaid; the rest was just kept as a grant by the organization. So obviously, whoever was included in the program got a major sweetheart deal.



The source is unaware what procedures were made the select the four winners, but by all accounts the process was completely dirty. Let us look at who the winners were:



1) The medical services/international development firm Curatio. Curatio was created by UMCOR employees, its Board at the time consisted almost entirely of UMCOR employees, it was rumored to be owned by Georgian UMCOR employees using UMCOR grants. When UMCOR Deputy Director Sandro Kvitashvili left UMCOR he immediately became 2-3rd ranking chief of Curatio. Curatio got all kinds of contracts from UMCOR—for example it supplied the UMCOR health insurance until Khatuna Zaldastanishvili, Deputy Country Director, came in and removed them and substituted her own outfit as the health insurance provider. Curatio stopped being important after Khatuna became chief—a new Mafia had assumed power in UMCOR. Obviously, a fair tender process could not have considered Curatio given its ties to UMCOR—but nevertheless it won.

2) The second firm to win was a manufacturer of cement blocks. The name is unknown, but the owner had very close ties (as witnessed by source) to Georgia UMCOR managers, and also probably family ties to them.







At this point it should be noted that repayments of the loan part was overall very poor, but that the two firms above were much better in this regard than the next two.



3) A glassmaker. Source knows very little about this recipient, except that he did not pay back the loan portion.



4) The best of all the recipients was a certain project called “Underground.” The loan/grant was meant to set up some small stores in an underground passage under a street or leading into a Metro. The “recipients” simply took the money and ran. They did not do absolutely anything. No repairs, no visible sign of any work—nothing ever got started. The feeling amidst UMCOR was that UMCOR managers had split the money with some friends and manufactured a completely fictitious project. As easy money as one can possibly make!! Not a single cent was ever returned.



Everybody considered the project an unmitigated disaster, and UNDP roasted UMCOR expatriates about this at certain heated meetings...but of course this was after the fact. Where was UNDP when the crimes were being committed?



A thoroughly amusing Postscript on the project: The Project Manager was somebody called Mamuka (last name cannot be remembered). One would have thought that after the disaster he presided over he would never be able to find a job with international organizations in his life. Instead, he left the project prior to its conclusion and became head of contracts for the World Bank in Tbilisi, lecturing other people and organizations about how to conduct honest fair and transparent contracting process. The only effect of the project was to teach all Georgians involved that corruption truly does pay and that one can take the money from international donors get away with it, and laugh at them too. The corrupt will still get hired again by their buddies.”



USAID and Job Searching "But she didn't get the job" UMCOR Fires Deputy Director for Corrupt Activities – Nevertheless USAID Close to Hiring Corruption’s “Iron Lady”



Sources inside the international NGO UMCOR confirm that its Georgia office in early June 2002 fired its Georgian Deputy Director Khatuna Zaldastanishvili on suspicion of graft and corrupt activities. Zaldastanishvili attained notoriety two years ago when an expose in the Georgian Profile magazine identified her as the driving force behind a number of dirty schemes carried out by the organization’s Georgian employees.





Officially, UMCOR’s contends her departure is due to the abolishment of her position as Deputy Director. However, this is clearly a fiction, since in that case she should have been assigned elsewhere instead of forced to leave. In reality, her dismissal involved an outrageous episode that a new UMCOR Director, less disposed than his predecessors to accept her “transgressions,” felt could not go unpunished.



According to these sources inside UMCOR, the firing followed an investigation of Zaldastanishvili’s connections to a local ketchup producing company for which she had proposed a huge grant (in USDA funds) of close to $500,000. According to the sources, suspicion began to grow when she pushed too hard to have this project approved, in the face of widespread skepticism of such a large sum being granted to a single, unknown company. In the end, the new UMCOR director launched an investigation that showed Zaldastanishvili to have close unofficial ties to this company, and that the directors of this firm had promised her payment of $200,000 if she could obtain the grant for them.



Zaldastanishvili’s dismissal comes at a time when her power inside UMCOR was greater than ever. She had recently achieved a long-standing ambition of fitting a local crony of hers in the position of Director of Agriculture programs, formerly reserved for expatriates. “She felt she could do anything, now that she controlled the highly lucrative USDA funded agriculture program” claims one source, “greed led to her downfall.”



One could think good riddance, but there is a twist to this story. It now appears that the USAID Mission in Georgia was set to hire Zaldastanishvili as a Foreign Service National. “The papers are already drawn up,” says a USAID Manager on condition of anonymity. Did USAID strike a deal with UMCOR to help ease Zaldastanishvili out, making it comfortable enough for her not to “spill the beans” on UMCOR?



NGO "Recently investigated in Georgia by USAID Office of Inspector General, three weeks ago. CARE International – sometime back in 2003.



Dear Mr. Silverman,



You have a very good reputation in uncovering corruption humanitarian organizations. I suggest you do some investigative work of CARE. The former Country Director, Tamara Tiffany, was quietly removed from her position about 6 months ago to avoid publicity.





While the Country Director, Ms. Tiffany used the CARE office and her position as a front for her own personal business.



Horizon Ltd.” The company has at least two individual businesses, a restaurant and a construction business. These two businesses are listed on the American Chamber of Commerce database of US companies operating in Georgia. Her husband supposedly owned horizon. In fact, she is the president of the company. This is clearly shown on the AmCham list.



While at CARE, she spent about half her time working on Horizon Ltd matters while being paid by US-based donors. She used CARE equipment to conduct her personal business. For example, each morning at work the fax machine was inundated with messages sent to her related to Horizon Ltd, not to the work of CARE. She had employees of CARE use work time to deal with matters solely related to Horizon Ltd. Finally, while she was working at CARE, the e-mail address for Horizon Ltd was: (Again refer to the AmCham list).



She used CARE’s import tax exemption to bring many assets into Georgia, including vehicles, which are used and owned solely by Horizon Ltd. In fact, the Horizon vehicle received yellow humanitarian license plates even though it is used only for her personal business. It is not clear what other materials and assets wee brought into the country under the CARE cover.



Ms. Tiffany should be investigated to see if CARE ever contracted with her construction company to do any other shelter work, of which CARE has done hundreds over the years. This would be a gross conflict of interests.



Not only was Ms. Tiffany quietly removed as part of a massive cover-up to protect CARE. It seems that USAID acquiesced in the removal in order to protect itself. And for all of this, Ms. Tiffany has been rewarded—she has been named as a member of the board of the American Chamber of Commerce in Tbilsi. US base NGOs like to talk about the problems of corruption in Georgia. What took place at CARE shows the level of hypocrisy that is commonplace.



Please do what you can to expose this so that one-day international NGOs will be able to redeem their integrity. I suggest that you begin by getting a copy of the AmCham database of US owned companies operating in Georgia and see for yourself—and then work backwards. There is a huge cover-up to be exposed.







Banking Scandals (US and European Funding)



Organized crime in Georgia is one of the most prevalent problems facing banking regulators and the international community. There are two clear-cut cases of banking fraud that, although separate, in many ways describe the panorama in viewing Georgian financial institutions in recent months. The way that he United States Agency for International Development (USAID) and the US Embassy reacted to a clear-cut instance of banking fraud may be more reflective of political expediency than actual greed and corruption.



Shore Bank (USAID and IFC funding, IFC is part of the World Bank Group).



In the Shore Bank case, it is not just that money was stolen while regulators appear to have looked the other way that was so embarrassing, but that the highly prized USAID-trained Georgian tax inspection participated in the looting of some of the money. Money was not only taken from the bank account, but revenues that were to flow into state coffers from Shore employment taxes went missing - this money was to be credited directly from TBC bank.



It will take the joint effort of several regulatory and international organizations working together to face the fallout of corruption in Georgia. Unfortunately, it appears at first impression that the international community and Western missions have been willing to turn a blind eye to the interface between such instances of corruption and networks of patronage, mainly because of not wanting to upset the fragile balance of outside interests and geopolitical rivalries that can easily spin out of control. The level of banking intrigue is reinforced with film and documentation and both internal and external investigative reports on how weapons are purchased from middlemen and are then passed along to Chechen fighters.



Facts (based on source inside USAID well acquainted with Shorebank issue, not for publication inside Georgia. Local hire, Nino Stepanishvili joined the bank in early 1999. She had previously worked for a major foreign pipeline construction firm in Tbilisi. It was believed she might have also stolen from them too. The theft from Shorebank is believed to have begun in early 2000. Shorebank in June 2002 eventually did initiate a criminal complaint against Stepanishvili (probably due to the Silverman investigation). There has been no further fallout—nobody has been arrested, and Georgian police are investigating but this has stopped now that USAID pulled life support for Shorebank. Shorebank fired two other local employees in July 2001, shortly after the discovery of the theft, on suspicion of collaboration with Stepanishvili.

Corrupt tax inspectors are believed to have played a key role in the conspiracy with Stepanishvili. “Tens of thousands” of dollars stolen represented tax payments, which Stepanishvili reported as paid, but in actuality were not, actually paid. Inspectors should have, but did not, report Shorebank’s non-payment for over a year, and were likely conspirators.


The tax inspectorate immediately launched an investigation once Stepanishvili was dismissed. USAID’s decision to have Shorebank pay up and shut up was due to embarrassment likely involvement of tax inspectors in this theft would have on the USAID project with the tax inspectors. Eventually tax inspectors forced Shorebank to pay a heavy fine due to “late payment” of taxes.

German Banker Life Threatened, "This story was broken by me in the Georgian Times Monday, December 2, 2002 (my name was not mentioned) but there is much below the surface. I still have all the correspondence between  Alexander von Gleich, banker and myself. I am saving that for the book. 

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