Energy Scandals Continue as Blackouts Persist

Parliamentary investigation commission reported, numerous violations in the energy sector of Georgia. However, the Parliament failed on March 28 to adopt proposal urging the Prosecutor General and the President to punish officials responsible for the energy crisis in the country.

The opposition United Democrats faction proposed a draft of resolution. Only 67 MPs voted for the draft, failing to meet the needed 79 votes’ threshold.

Parliament’s failure to adopt the proposed resolution caused protest of Parliamentary Chairperson Nino Burjanadze. She criticized those MPs, which voted against the draft.

“[The failure to adopt the proposal] is shameful. It seems to me that most of my colleagues do not live in Georgia and do not know what is going on in energy sector of the country. This draft only called for investigation into officials responsible for the energy crisis. I can not understand how long we should keep silence regarding the issue,” Nino Burjanadze said at the session on March 28.

Discussion of the energy crisis issues and the drafting of the resolution were triggered by the report of the Chairman of the Parliamentary investigation commission, which probes the reasons of energy crisis, delivered to the Parliament on March 27. MP Irakli Chubinishvili, Chairman of the commission accused the leadership of the Fuel and Energy Ministry and the “President’s family” in energy crisis.

Based on the report by the investigation commission, the opposition Parliamentary faction Traditionalists initiated collection of signatures of MPs on March 27 to start the process of impeachment of Energy Minister David Mirtskhulava. However, only 34 MPs have put their signatures on the request for impeachment so far, while 79 signatures are required to initiate the impeachment procedure.

According to the Parliamentary investigation commission in 2002 one billion KWatts of energy out of 7,8 billion of totally produced in Georgia, were not accounted for. “This is the energy worth of 60 million Lari [USD 29 million]. This money went to pockets of the few people,” Chairman of the commission Irakli Chubinishvili said at the Parliamentary session on March 27.

“Mirtskhulava’s impeachment will not change anything. Responsible for the crisis and corruption in the energy system is the President’s family, which controls the whole energy sector. Therefore we must request the entire government to stand responsible for the energy crisis,” Chubinishvili added.

The head of the investigation commission claimed that while the regions and the capital city suffer from endless blackouts, Georgia “is transiting energy to third states, particularly to Azerbaijan, bypassing customs duties. The transit is not registered officially with any of the relevant authorities and is illegal.”

“If we owe money to Azerbaijan, then we should transit the energy in summer and not in winter [when we have critical situation in the energy system],” Chubinishvili added.

He also rejected claim that the population is not paying for consumed electricity, although the officials argue that this is one of the main reason of the crisis. “Almost in every region and in the capital majority of people do pay for the electricity, although it is very hard for them to do so. The recovery ratio is 80%. Apparently this money goes to somebody else’s pocket,” Chubinishvili said.

Facts and evidence provided by Chubinishvili resulted in fierce criticism of the Energy Minister by the opposition factions. Remarkably, the pro-governmental factions did not even try to defend the minister.

The Committee blew a whistle already on in December 16, 2002, claiming some USD 300 million were misappropriated in Georgia’s energy sector in course of past ten years. These accusations were not properly responded to and nobody was held responsible.

David Mirtskhulava said he is ready to take responsibility and even to resign. “It does not matter who is guilty. If the minister is responsible [for all of this] I will resign. Therefore I demand detailed investigation of the case. Otherwise I do not wish to listen to this slur,” Mirtskhulava said.

However considering quite rich past experience the investigation is likely to lead nowhere. The Parliament requested the Prosecutor General’s Office to investigate violations in the energy system as early as last December, when the Parliament heard the first report of the investigation commission. “However not a single person was punished so far,” Irakli Chubinishvili says.

“For example the law enforcers are “searching” for the head of the IberPrimeCapital Company, who is charged with violations in the energy sector. But he comes to the Parliament at least three times a week and the company continues functioning. No one even tries to arrest the chief of the company,” Chairman of the investigation commission added.

While the politicians and the energy officials exchange the accusations, the population will have to face at least one more winter without electricity, as the Energy Minister makes quite unpromising forecasts. Mirtskhulava stated “the situation could not be improved before 2004”.

“I have made such estimation two years ago, when I was appointed the Energy Minister, because we have many technical problems which require some time for solution,” he said.

By Tea Gularidze, Civil Georgia