Weekly Review of Ministries’ Activities. July 28 – August 4, 2001

Ministry of Internal Affairs

Last week law-enforcing structures have not revealed any new information on journalist Giorgi Sanaia’s murder case. They keep all information classified to ensure success of investigation process.

On July 30, employees of Ankara branch of FBI arrived to Tbilisi. On the next day they met Minister of Internal Affairs Kakha Targamadze, Prosecutor General Giorgi Meparishvili and the investigation team. Georgian law enforcers introduced American colleagues to the materials of the case. After the meetings, FBI representatives admitted that the murder was committed by a professional. They stated, rather pessimistically, that it might be impossible to find a killer and the case might be unsolved.

On August 1st, Internal Affairs Minister and Prosecutor General met President Shevardnadze to update him on development of the investigation process. President once again addressed law enforcers, that solution of this case is a matter of professional honor. Law enforcers stated, that they possess important information and evidences, which would help to capture the killer.

More than one week has passed since the murder of Giorgi Sanaia, however citizens do not know much about the case so far. Furthermore, an opinion that the case might remain unsolved is becoming stronger in the mass media, among politicians and population.

***

Case of two kidnapped Spaniard businessmen has become especially actual during last week. But not because of any success of Georgian law enforcers. The issue has been discussed at the Parliament level in Spain last week. The Opposition forces of Spanish Parliament addressed the Government to actively engage in process of release of these persons and take all necessary measures.

In this regard the Committee of Foreign Affairs of the Parliament addressed Georgian Foreign Ministry and Prosecutor General to provide information on conducted activities to release kidnapped businessmen. The Committee has not received the information so far. Law enforcers are aught to submit this information to the Committee before August 6th.

This fact is widely screened by Spanish mass media. On August 1st, “El Pais” newspaper wrote, that kidnappers demand 500 000 USD ransom. Supposedly, two businessmen are being detained in Pankisi valley.

Ministry of Justice

On August 3rd Prosecutor’s Office has declared Deputy Minister of Justice Irakli Okruashvili as a suspect in disobey to the Police. The Prosecutor’s Office initiated a case on the incident, which happened last year.

Okruashvili is accused for physical and verbal insult of the police officer, who did not permit Deputy Minister to pass the road, which has been temporarily closed, expecting passage of President’s escort.

On August 3rd, Okruashvili attended interrogation, but chose to use the right of silence. The Prosecutor’s Office is going to charge Okruashvili, based on strong evidences. Law enforcers would discuss the issue of his punishment as well. Okruashvili himself regards these charges as a provocation against him and the Ministry of Justice from the Police side and denies all charges. Okruashvili states that this is a process, planned at highest levels of the Government in reply to the Ministry’s negative conclusions on several important bills and decisions, elaborated by the State Chancellery. First of all this concerns decision, lobbied by the Minister of Economy, Industry and Trade Vano Chkartishvili, to place “Chiaturmanganum” and Zestaponi Ferrous Alloys Factory as a one lot on the tender.

After Mikheil Saakashviil became the Minister of Justice, tensions between his Ministry and law-enforcing structures keeps deepening. Ministry of Justice tries to reduce rights of almost plenipotent Ministry of Internal Affairs, which has highest level of corruption among all Governmental structures. This process ahs started with subordination of penitentiary system to the Justice Ministry and reforms will continue. The Ministry of Internal Affairs tries to maintain his powers and influence at all costs.

Ministry of Finances

On August 2nd, exactly 2 months after the Finance Minister Zurab Nogaideli pledged un-necessity to sequester the budget, he named tentative figures, that the budget would be sequestered. Minister talked about 140-150 million Laris, but this figure is very likely to change to 205 millions.

As it is known, Georgia should have received four credits of total amount of 145 million Laris from the World Bank during the year 2001. Only two credits have been received. Remaining 65 millions are under question now. It is remarkable, that these sums have been included into the state budget and the Ministry was going to repay the debt to the National Bank. Since these two credits would not be received, the Government has two options left: either to cut down so called ‘protected points’ of the budget or to delay repayment of the debt to the Bank. The Ministry of Finances chose second option and borrowed another 65 million from the Bank. This might become yet another reason of opposition between these two institutions (Ministry’s debt to the Bank for 11 years has reached 700 million Laris). Zurab Nogaideli admits, that it would not be possible to repay the debt to the Bank evening the next year.

It is possible, that such policy of the Ministry of Finances might result devaluation of the national currency. Nogaideli excludes such possibility. However, he also did exclude the necessity to sequester the budget two months ago). The Bank fears that implementation of Nogaideli’s plan would have negative results of such actions on the national currency. Other experts also agree to the Bank’s opinion. Former president of the National Bank Nodar Javakhishvili says, that delay of payment short-term loans to the Bank would cause transfer to a liberal fiscal policy, followed by hyperinflation.

Unrecovered 80 million laris from privatizations of “telecom” and “Elektrokavshiri” (Electro Communications) are worsening the situation. The Ministry declares, that these fund could not be recovered during this year. These 80 millions were meant to be used to payoff social debts of the previous years.

If we sum up two credits of the World Bank, unrecovered 80 millions from the privatization process and 60 million deficit of the first half of the year, we would have total deficit of 205 million Laris. It is expected, that the budget would be sequestered for this sum.

Ministry of Foreign Affairs

On July 31st, Security Council of the United Nations adopted resolution elaborated by ‘Friends Group’ of Georgia (the group, which joins Russia, United States, Great Britain, France etc works on Abkhazian conflict issues). The resolution represents joint position of the Group’s members regarding the document on “Distribution of Authority between Tbilisi and Sukhumi”.
 
Ministry of Foreign Affairs of Georgia gives positive evaluation to the document. However, it is not satisfied with some of the points of the resolution. In particular: the resolution says, that the sides (Tbilisi and Sukhumi) should resume meetings of the coordination council, which have been suspended. The ministry states, Sukhumi is responsible for suspension of the meetings. Therefore, it is not acceptable, when the ‘Friends Group’ calls upon both sides to resume the meetings. Official Tbilisi is always ready to restore negotiations in the framework of the coordination council.

At the same time, the resolution states, that it is inadmissible to have demographic changes in Abkhazia due to the conflict. This means, that 300 000 displaced persons must be returned to Abkhazia immediately. This provision is very desirable for Tbilisi.

The Security Council will continue discussion of the document on the division of authorities in October. The Russian side demanded more clear definition of these authorities in the document.

Ministry of Defense

Armed forces of the United States continue to aid Georgian Defense Ministry. 6-member team of US Marines will conduct seminars for Georgian officers. The seminars will last for one week. Marines, who arrived to Georgia on August 2nd, will conduct practical trainings as well as theoretical lessons. Military drill will be conducted both on terrain and at sea. US patrol boat “Typhoon” will participate in these drills. The trainings will be conducted in Poti aquatory. Patrol boat will leave Georgia on August 10.

***

On July 30th, Chief of General Staff of the Defense Ministry John Pirtskhalaishvili started his 4-days-long official visit to Ukraine. He will discuss issues of aid to Georgian air force with his Ukrainian counterpart Vladimer Shkidchenko. The sides will also talk on joint event, planned for year 2001.

***

On July 30th, Italian Navy ship “Orsa” entered port of Batumi to start 4-days-long friendly visit. Italian militaries met authorities of Adjarian Autonomous Republic. Italian ship participated in joint military trainings in Batumi port together with Georgian vessels.