Kosovo’s independence was called as a special case by the Western powers while Russia had warned it as a dangerous “precedent” earlier this year but European Commission President Jose Manuel Barroso on Tuesday (October 14) dismissed Moscow’s “Kosovo” comparison with the “South Ossetia and Abkazia,” as baseless.
Addressing a joint press conference in Brussels, along with Georgian President Mikheil Saakashvili, Commission President Barroso said, “From the start, we’ve said that Kosovo cannot create a precedent. We don’t believe that any parallels should be drawn between the situation in Kosovo and the Georgian regions.”
Answering a question from New Europe on the subject, the Commission President said, “Developments have confirmed this. Kosovo has been recognised by a large number of countries in the world, the overwhelming majority of EU member-states, many outside Europe ... while no-one important in the world has recognised the Georgian regions.” Barroso added that the EU would not allow the “red line“ to be crossed, which was full respect for Georgia’s territorial integrity and sovereignty
Stressing the difference between the two cases, Georgian President Saakashvili told journalists, “NATO came to Kosovo to prevent ethnic cleansing while Russia came to Georgia to commit ethnic cleansing.”
Russia launched an offensive against Georgia on August 8 to push back a Georgian offensive to retake South Ossetia from Moscow-backed separatists and Moscow recognised the regions as independent states following the five-day war.
Moscow said it was protecting Russian citizens in the region from Georgian aggression, but Tbilisi accused Moscow of “ethnic cleansing” of the region to cement control over the disputed parts.
Commenting on their first face-to-face talks slated for Wednesday, since Russia invaded Georgia in early August, Saakashvili said, “First Russia has to get out of there, they have no right to be there with tanks and troops,” adding, “We would be more than happy to cooperate with any community, any representative but not in this kind of situation.” He accused Russia of “setting up illegal bases, illegal checkpoints and they are basically making fun of international law and international justice.”
President Saakashvili branded representatives of Georgia’s rebel regions “ethnic cleansers” and casting doubt over whether international talks with Russia would be successful. “We don’t think these people are politicians, we think they are ethnic cleansers and we think they are criminals,” he said.
EU needs Russia
On the question of restarting negotiations with Moscow on a new partnership deal, President Barroso said that it was not "a gift for Russia" from the EU, adding that for the EU, there were financial, investment and economic interests to negotiate with Russia on a new Cooperation and Partnership Agreement.
Citing sectors like fighting climate change and maintaining energy security as major points of cooperation, Commission President said, “I think it is in the interest of the EU to keep the dialogue with Russia to promote stability in Europe.”
Since the unilateral declaration of independence in February this year, the EU has tried to avoid parallels between Georgian breakaway regions of South Ossetia and Abkazia, saying Kosovo is "unique" with 20 out of 27 EU states recognised the unilateral declaration without an EU mandate.
Although Russia has withdrawn from most of Georgia in line with an EU-brokered ceasefire, Tbilisi is furious at the continuing presence of 7,600 Russian troops in the Georgian rebel regions of South Ossetia and Abkhazia.
Showing posts with label Georgia. Show all posts
Showing posts with label Georgia. Show all posts
Wednesday, October 15, 2008
Wednesday, October 8, 2008
Obama takes it all
Hello readers!
I am not sure if this American Debate between McCain and Obama is worth any mention but as I watched it became more and more lopsided. Very badly moderated also, if I may add.
Loved the blog updating at CNN with Jonathan Mann inviting everyone like always and then doing the vanishing trick.
From experience with politicians, I thought Mc who is trailing, will come out and try some freshness but then as some followers of the debate pointed at the body language he did it in a strange "old" way and in the process looked empty in substance.
Knowing the position of Russia with its energy (gas to Europe and oil to globe) and its readiness to use strong arm-tactics as shown in Georgia who was egged on by the West but had to face the Big Bear hug alone :-) Georgia was promised NATO membership but never given at Bucharest Summit and today Mc again talked of seeing KGB in Putin's eyes.
Will Americans fall for that kind of fear mongering? I hope not.
Not knowing one thing about Islam, the Bush administration has watered with American blood the fertile lands of Islamic society especially in Iraq to produce more jihadis.
And now Pakistan is going haywire and all that after pumping millions of American taxpayers' money there. As one Pakistani politician who is famous for taking more wickets in the cricket world then polling votes in elections (yes, you guessed fast bowler of yesteryears: Imran Khan) told me in a recent press conference at the European parliament that the focus has shifted. He said that the al-Qaeda is the real enemy and its time to get back the focus on al-Qaeda and Afghanistan. (More about Imran's views in an earlier post).
More next time. Please feel free to post your comments.
Cheer,
Tejinder Singh
otitos@gmail.com
Saturday, October 4, 2008
NATO, UN sign deal; Afghanistan, Kosovo in the focus
The United Nations and NATO signed an agreement formalising the existing political cooperation between two bodies, NATO spokesman James Appathurai said in Brussels last Wednesday.
Addressing journalists during a press briefing, Appathurai said that the paper was signed recently on the sidelines of the UN General Assembly in New York by the secretary generals of both organisations, Jaap de Hoop Scheffer for NATO and Ban Ki Moon for the UN.
The agreement did not bring about any "dramatic changes" for the cooperation in crisis regions like Afghanistan or Kosovo, where NATO acted on behalf of the UN, he added. It was a "pragmatic agreement" recognising existing cooperation which was much appreciated, he said.
AFGHANISTAN
NATO and Afghanistan agreed they needed to coordinate more closely to avoid civilian casualties in operations against militants, Appathurai told journalists.
Pointing to a "a general shared view" between NATO ambassadors and Afghan Defence Minister Abdul Rahim Wardak that there needed to be closer coordination between Afghan and NATO forces, Appathurai said that there was consensus on the need to give "a much more important role to Afghan forces in the conduct of searches, which are sensitive in Afghanistan, but also with regard to planning of offensive operations.”
The two sides also agreed on the need for closer coordination, including with the United Nations, when it came to investigating civilian casualties so discrepancies in numbers did not occur, Appathurai said.
The ambassadors and Wardak also discussed Afghan proposals to almost double the size of the Afghan army to 122,000 and NATO would probably back the plan if it were approved, Appathurai said.
SERBIA
NATO and Serbia last Wednesday signed a security agreement that allows for exchange of classified information with the two, said the alliance. The agreement, a standard document between NATO and Partnership for Peace (PfP) countries, was signed at the NATO headquarters by Serbian Defense Minister Dragan Sutanovac and NATO Secretary General Jaap de Hoop Scheffer.
The agreement will facilitate military-to military cooperation between Serbia and the alliance, Appathurai told journalists. He said the signing of the agreement was a "substantial step" in the relationship between Serbia and NATO.
Serbia joined NATO's PfP program in November 2006, together with Montenegro and Bosnia. Unlike the other two Balkan states, Serbia had been reluctant to move forward in its relationship with the alliance. The step of the new Serbian government was strongly welcomed by NATO allies, said Appathurai.
Sutanovac, who was visiting the NATO headquarters, also addressed the North Atlantic Council, composed of ambassadors from NATO countries. He was told by the ambassadors that a democratic Serbia in Euroatlantic structures is good for regional security and stability, said Appathurai. Serbia was also asked to fully cooperate with the International Criminal Tribunal for the former Yugoslavia (ICTY), he said.
Serbia arrested former Bosnian Serb leader Radovan Karadzic and handed him over to the ICTY in July. Serbia is yet to arrest to transfer former Bosnian Serb military commander Ratko Mladic.
GEORGIA
NATO's recently established Georgia committee will have its next session - to be its second - in Budapest, on the sidelines of an informal meeting of defence ministers of the organisation this week (October 10), Appathurai told journalists. The committee was set up following the Russia-Georgia conflict this summer, to demonstrate NATO's support to Georgia.
TRANSPORT PLANES INITIATIVE
Twelve countries including two non-NATO nations signed a deal last Wednesday to jointly buy and operate three giant transport planes to fill a shortfall that has dogged international missions from Afghanistan to Sudan.
Under the agreement, reached after two years of negotiations, they will jointly acquire three Boeing C-17s and place them at Papa, a new operating base in Hungary early next year under the command of a US officer with multinational crews, said Appathurai. The planes will be available for NATO, European Union and United Nations missions, he added.
NATO has long suffered a shortage of large transport aircraft, and the deal reached by 10 of its members and two non-NATO members - Sweden and Finland - is aimed at addressing that problem.
Appathurai said the arrival of the planes will provide an "important new capability" for the alliance and is a model for how smaller countries can pool resources to acquire equipment beyond the reach of their individual defence budgets.
The 10 NATO members that took part in Wednesday's deal are Bulgaria, Estonia, Hungary, Lithuania, Netherlands, Norway, Poland, Romania, Slovenia and the United States. Britain and Canada have separately acquired a total of 10 of the planes.
Two non-NATO countries — Sweden and Finland — also signed on.
(Published in www.neurope.eu)
Addressing journalists during a press briefing, Appathurai said that the paper was signed recently on the sidelines of the UN General Assembly in New York by the secretary generals of both organisations, Jaap de Hoop Scheffer for NATO and Ban Ki Moon for the UN.
The agreement did not bring about any "dramatic changes" for the cooperation in crisis regions like Afghanistan or Kosovo, where NATO acted on behalf of the UN, he added. It was a "pragmatic agreement" recognising existing cooperation which was much appreciated, he said.
AFGHANISTAN
NATO and Afghanistan agreed they needed to coordinate more closely to avoid civilian casualties in operations against militants, Appathurai told journalists.
Pointing to a "a general shared view" between NATO ambassadors and Afghan Defence Minister Abdul Rahim Wardak that there needed to be closer coordination between Afghan and NATO forces, Appathurai said that there was consensus on the need to give "a much more important role to Afghan forces in the conduct of searches, which are sensitive in Afghanistan, but also with regard to planning of offensive operations.”
The two sides also agreed on the need for closer coordination, including with the United Nations, when it came to investigating civilian casualties so discrepancies in numbers did not occur, Appathurai said.
The ambassadors and Wardak also discussed Afghan proposals to almost double the size of the Afghan army to 122,000 and NATO would probably back the plan if it were approved, Appathurai said.
SERBIA
NATO and Serbia last Wednesday signed a security agreement that allows for exchange of classified information with the two, said the alliance. The agreement, a standard document between NATO and Partnership for Peace (PfP) countries, was signed at the NATO headquarters by Serbian Defense Minister Dragan Sutanovac and NATO Secretary General Jaap de Hoop Scheffer.
The agreement will facilitate military-to military cooperation between Serbia and the alliance, Appathurai told journalists. He said the signing of the agreement was a "substantial step" in the relationship between Serbia and NATO.
Serbia joined NATO's PfP program in November 2006, together with Montenegro and Bosnia. Unlike the other two Balkan states, Serbia had been reluctant to move forward in its relationship with the alliance. The step of the new Serbian government was strongly welcomed by NATO allies, said Appathurai.
Sutanovac, who was visiting the NATO headquarters, also addressed the North Atlantic Council, composed of ambassadors from NATO countries. He was told by the ambassadors that a democratic Serbia in Euroatlantic structures is good for regional security and stability, said Appathurai. Serbia was also asked to fully cooperate with the International Criminal Tribunal for the former Yugoslavia (ICTY), he said.
Serbia arrested former Bosnian Serb leader Radovan Karadzic and handed him over to the ICTY in July. Serbia is yet to arrest to transfer former Bosnian Serb military commander Ratko Mladic.
GEORGIA
NATO's recently established Georgia committee will have its next session - to be its second - in Budapest, on the sidelines of an informal meeting of defence ministers of the organisation this week (October 10), Appathurai told journalists. The committee was set up following the Russia-Georgia conflict this summer, to demonstrate NATO's support to Georgia.
TRANSPORT PLANES INITIATIVE
Twelve countries including two non-NATO nations signed a deal last Wednesday to jointly buy and operate three giant transport planes to fill a shortfall that has dogged international missions from Afghanistan to Sudan.
Under the agreement, reached after two years of negotiations, they will jointly acquire three Boeing C-17s and place them at Papa, a new operating base in Hungary early next year under the command of a US officer with multinational crews, said Appathurai. The planes will be available for NATO, European Union and United Nations missions, he added.
NATO has long suffered a shortage of large transport aircraft, and the deal reached by 10 of its members and two non-NATO members - Sweden and Finland - is aimed at addressing that problem.
Appathurai said the arrival of the planes will provide an "important new capability" for the alliance and is a model for how smaller countries can pool resources to acquire equipment beyond the reach of their individual defence budgets.
The 10 NATO members that took part in Wednesday's deal are Bulgaria, Estonia, Hungary, Lithuania, Netherlands, Norway, Poland, Romania, Slovenia and the United States. Britain and Canada have separately acquired a total of 10 of the planes.
Two non-NATO countries — Sweden and Finland — also signed on.
(Published in www.neurope.eu)
Saturday, January 12, 2008
NATO optimistic on Afghanistan
Secretary General says Kosovo volatile, Pakistan restive
NATO Secretary General Jaap de Hoop Scheffer on January 10 expressed optimism for the situation in Afghanistan amid criticism of allies’ apathy in the region. Welcoming a recent decision by the United States to send an extra 3,000 Marines to Afghanistan, de Hoop Scheffer called for patience and cautioned against drawing hasty conclusions on the situation in the country.
Addressing journalists at a New Year reception hosted by NATO, de Hoop Scheffer denied that allies “are not active enough” adding, “If you look at the recent past, you see a number of allies stepping up to the plate. Even yesterday, we heard that Poland has made a very substantial and considerable offer, including eight helicopters, which is a lot, and ground forces for Afghanistan.”
“Nations like Slovakia, Hungary, Georgia, France, the Czech Republic, Australia, Norway, Singapore, Azerbaijan - all of course according to their capability - ...have recently contributed or are contributing forces,” he said. “The Afghan National Army is doing better and better. Health care is up. Child mortality is down. Two-thirds of villages in Afghanistan have received development projects worth up to USD 50,000. Comparing situation in 2001 to start of 2008, lots of progress has been made, but the problem is that we, the international community has no patience. We want to see instant progress, but that is not possible. We need ‘patience.’ This is a long-term commitment,” he said.
Stressing, “The answer in Afghanistan is not military but civilian. Reconstruction and development is something for the long-haul,” the Secretary General reiterated that Afghanistan is the key in the fight against terrorism.
According to NATO figures, the number of troops in ISAF - now provided by 39 nations - rose from around 33,000 in January 2007, to almost 42,000 by December. With around 140 suicide attacks, 2007 was the bloodiest year in Afghanistan since the Taliban were ousted from power in late 2001, according to a United Nations survey.
Answering a journalist’s question, de Hoop Scheffer expressed concern over the situation in Pakistan. “That’s the situation in Pakistan, it’s very relevant for the NATO operation, the ISAF operation in Afghanistan.”
Refusing to comment on the internal situation in Pakistan, the Secretary General said, “I’ll not comment on the internal situation in Pakistan. That’s not up to me. What is important is that those people who are trying to make life in Afghanistan more complicated than it already is, are adequately dealt with in Pakistan as well.”
On the issue of Kosovo, Secretary General de Hoop Scheffer said NATO had a clear “key” role in Kosovo and “KFOR will stay and protect minorities and majorities alike.” Highlighting the presence of about “16,000” peacekeeping troops in Kosovo, the Secretary General said, “KFOR is there to stay with 1244 UN resolution... (and will stay) unless there is another resolution from United Nations.”
“The situation (in Kosovo) is volatile now ... (But) Let nobody be under the illusion that he or she could get his way by violent means,” the NATO chief said. “Although I prefer a negotiated solution, the chance seems remote now,” he added.
Asked to comment on the changes if the European Union will send its own mission to Kosovo, de Hoop Scheffer told journalists, “KFOR’s mandate as such will not change ...But the ESDP mission, as you know, when it would come, would have a police element and KFOR is not a police force in Kosovo.”
He described the need to have a close EU-NATO cooperation in Kosovo as “very important” and said all of the Western Balkans should one day be allowed to join NATO and the EU. Kosovo, a province of 2.2 million, has been under UN administration since 1999, when NATO bombs stopped Serbian ethnic cleansing in the area.
Commenting on the Western Balkans in general, the Secretary General said, “Now, we have ...the only recipe, in my opinion, which will create lasting stability and security in the Balkans is the road to Euro- Atlantic integration. And at the end of the day, and I don’t know when the end of the day will come, but my ideal would be that I see all those countries in the European Union and in NATO. That is the only recipe for stability.”
NATO leaders are due to meet in Bucharest, Romania, for a summit scheduled to take place on April 2-4. The NATO chief de Hoop Scheffer said the summit would address “future threats and challenges,” such as cyber defence and energy security, and would consider the applications of three potential new member states: Albania, Croatia and the Former Yugoslav Republic of Macedonia (FYROM).
Saying, “the level of scrutiny has never been more intense,” and without committing himself on their chances to join the alliance this spring, the Secretary General urged them to continue reforms up to “the last moment.” “NATO allies will take a political decision,” he added.
Asked to comment on others (Georgia and Ukraine), de Hoop Scheffer said, “Ukraine has a distinctive partnership, Intensified Dialogue. So has Georgia, Intensified Dialogue. We should use that to the full ...I do not know what Bucharest exactly will result in as far as Ukraine and Georgia are concerned. For the moment my advice would be let’s at least use the Intensified Dialogue we have with Ukraine and with Georgia to the full. And I say again we’ll certainly, and I’ll certainly establish sooner rather than later contacts with the new Ukrainian government and with the Georgian government for that matter, after the moment there is a new Georgian government.”
NATO Secretary General Jaap de Hoop Scheffer on January 10 expressed optimism for the situation in Afghanistan amid criticism of allies’ apathy in the region. Welcoming a recent decision by the United States to send an extra 3,000 Marines to Afghanistan, de Hoop Scheffer called for patience and cautioned against drawing hasty conclusions on the situation in the country.
Addressing journalists at a New Year reception hosted by NATO, de Hoop Scheffer denied that allies “are not active enough” adding, “If you look at the recent past, you see a number of allies stepping up to the plate. Even yesterday, we heard that Poland has made a very substantial and considerable offer, including eight helicopters, which is a lot, and ground forces for Afghanistan.”
“Nations like Slovakia, Hungary, Georgia, France, the Czech Republic, Australia, Norway, Singapore, Azerbaijan - all of course according to their capability - ...have recently contributed or are contributing forces,” he said. “The Afghan National Army is doing better and better. Health care is up. Child mortality is down. Two-thirds of villages in Afghanistan have received development projects worth up to USD 50,000. Comparing situation in 2001 to start of 2008, lots of progress has been made, but the problem is that we, the international community has no patience. We want to see instant progress, but that is not possible. We need ‘patience.’ This is a long-term commitment,” he said.
Stressing, “The answer in Afghanistan is not military but civilian. Reconstruction and development is something for the long-haul,” the Secretary General reiterated that Afghanistan is the key in the fight against terrorism.
According to NATO figures, the number of troops in ISAF - now provided by 39 nations - rose from around 33,000 in January 2007, to almost 42,000 by December. With around 140 suicide attacks, 2007 was the bloodiest year in Afghanistan since the Taliban were ousted from power in late 2001, according to a United Nations survey.
Answering a journalist’s question, de Hoop Scheffer expressed concern over the situation in Pakistan. “That’s the situation in Pakistan, it’s very relevant for the NATO operation, the ISAF operation in Afghanistan.”
Refusing to comment on the internal situation in Pakistan, the Secretary General said, “I’ll not comment on the internal situation in Pakistan. That’s not up to me. What is important is that those people who are trying to make life in Afghanistan more complicated than it already is, are adequately dealt with in Pakistan as well.”
On the issue of Kosovo, Secretary General de Hoop Scheffer said NATO had a clear “key” role in Kosovo and “KFOR will stay and protect minorities and majorities alike.” Highlighting the presence of about “16,000” peacekeeping troops in Kosovo, the Secretary General said, “KFOR is there to stay with 1244 UN resolution... (and will stay) unless there is another resolution from United Nations.”
“The situation (in Kosovo) is volatile now ... (But) Let nobody be under the illusion that he or she could get his way by violent means,” the NATO chief said. “Although I prefer a negotiated solution, the chance seems remote now,” he added.
Asked to comment on the changes if the European Union will send its own mission to Kosovo, de Hoop Scheffer told journalists, “KFOR’s mandate as such will not change ...But the ESDP mission, as you know, when it would come, would have a police element and KFOR is not a police force in Kosovo.”
He described the need to have a close EU-NATO cooperation in Kosovo as “very important” and said all of the Western Balkans should one day be allowed to join NATO and the EU. Kosovo, a province of 2.2 million, has been under UN administration since 1999, when NATO bombs stopped Serbian ethnic cleansing in the area.
Commenting on the Western Balkans in general, the Secretary General said, “Now, we have ...the only recipe, in my opinion, which will create lasting stability and security in the Balkans is the road to Euro- Atlantic integration. And at the end of the day, and I don’t know when the end of the day will come, but my ideal would be that I see all those countries in the European Union and in NATO. That is the only recipe for stability.”
NATO leaders are due to meet in Bucharest, Romania, for a summit scheduled to take place on April 2-4. The NATO chief de Hoop Scheffer said the summit would address “future threats and challenges,” such as cyber defence and energy security, and would consider the applications of three potential new member states: Albania, Croatia and the Former Yugoslav Republic of Macedonia (FYROM).
Saying, “the level of scrutiny has never been more intense,” and without committing himself on their chances to join the alliance this spring, the Secretary General urged them to continue reforms up to “the last moment.” “NATO allies will take a political decision,” he added.
Asked to comment on others (Georgia and Ukraine), de Hoop Scheffer said, “Ukraine has a distinctive partnership, Intensified Dialogue. So has Georgia, Intensified Dialogue. We should use that to the full ...I do not know what Bucharest exactly will result in as far as Ukraine and Georgia are concerned. For the moment my advice would be let’s at least use the Intensified Dialogue we have with Ukraine and with Georgia to the full. And I say again we’ll certainly, and I’ll certainly establish sooner rather than later contacts with the new Ukrainian government and with the Georgian government for that matter, after the moment there is a new Georgian government.”
Sunday, December 16, 2007
Politics hits Georgia private banking sector
Business climate and freedom of expression are two major pillars of an open and dynamic democratic society and it seems Georgia is scoring negative marks on both these arenas.
Following the unceremonious silencing of the pro-opposition Imedi television channel and other business ventures under different pretexts, there are more attempts to silence the voice of opposition led by Badri Patarkatsishvili, a presidential candidate and to vitiate the business climate so that business knows where the buck stops.
The heat recently turned up on Standard Bank, owned by Salford Capital Partners, a London-based private equity firm, which manages Patarkatsishvili's business assets in Georgia. On November 24, Standard Bank, one of the country's largest retail banks, was placed under the temporary administration of the National Bank of Georgia, a measure usually taken when there is concern about the liquidity of a bank's assets.
Speaking to New Europe, Peter Nagle of Salford Capital said: "Standard Bank was seized by the Georgian authorities on 24 November. This was part of a series of attacks and confiscation of assets believed to be related to Badri Patarkatsishvili, a presidential opposition candidate."
"When the bank was seized it was in full compliance with all Georgian Banking requirements, particularly those related to liquidity. This attack on private property raises serious questions about the actions of the Georgian Government and potential conflicts of interests related to the Bank of Georgia. It sets a very poor precedent and signal for foreign investment into Georgia. We are especially unhappy about the detention and harassment of our employees."
On the other hand a National Bank of Georgia press release said that the central bank stepped in when it became apparent that Standard Bank was on the verge of bankruptcy. "We believe that this is due to the perception by the Georgian Government that Salford and its controlled companies are fully owned and controlled by Mr. Partarkatsishvili and have been used to actively support his political aspirations," Salford said in a statement.
The statement further explained, "In order to clarify this we wish to provide a clear explanation of Salford and its operations in Georgia and its relationship with Mr. Partarkatsishvili." "Salford is an international private equity firm that focuses on investments in CEE and CIS. Salford has offices in Moscow, Tbilisi, Kiev, Belgrade and London and employs approximately 35 professionals globally. Mr. Partarkatsishvili does not, (and never has) hold a direct or indirect beneficial financial interest in Salford nor does he participate in the management of Salford."
"Salford's advisory board members include Lord Bell (Chairman of Chime Communications Plc, Dr. Klaus Mangold (Former Vice Chairman Daimler Chrysler and Former Chairman Daimler Chrysler Financial Services) and Philip von Stauffenberg (CEO Solidus and former senior executive with Hicks Muse Furst & Tate and Warburg Pincus, two of the worlds leading private equity firms)."
Political observers and financial pundits have been unequivocal in raising doubts about the alleged motives behind these moves as the affected bank raised questions like:
"After the imposition of a state of emergency on November 7, a large number of the deposits (nearly 25 percent of total deposits) were withdrawn from Standard Bank in an attempt to create a artificial liquidity crisis, Why?"
"If indeed there were liquidity concerns, why prior to the seizure was there no engagement by the Regulator with Bank management or shareholders to discuss and remedy them?"
"Why has no written explanation been given to shareholders by the Regulator specifying the liquidity concerns?"
"Why has the Regulator refused to respond to written documentation from shareholders demonstrating that, at the time of the seizure, the Bank was in full compliance with all liquidity requirements?"
"Police from the Georgian Constitutional Security Department ("CSD") were present during the seizure. How do liquidity concerns at a Georgian bank represent a threat to Georgian national security?"
Commenting on the situation, Eugene Jaffe, CEO of Salford Capital Partners, stated: "This is an outrage - an artificial liquidity crisis engineered by the Georgian Government in order to seize a leading Georgian Bank for political motives; to the benefit of Bank of Georgia. All under the knowledge of the Prime Minister who knows better, I have not seen an abuse of power like this since Russia in the mid 1990's. This is a complete disregard for the rule of law and investor rights in Georgia - a truly appalling precedent has been set. We will take all means necessary to defend our interests."
Salford has engaged the international law firm of Debevoise & Plimpton LLP to represent it in this matter and has put the Georgian Government and Bank of Georgia on formal legal notice regarding this matter.
Following the unceremonious silencing of the pro-opposition Imedi television channel and other business ventures under different pretexts, there are more attempts to silence the voice of opposition led by Badri Patarkatsishvili, a presidential candidate and to vitiate the business climate so that business knows where the buck stops.
The heat recently turned up on Standard Bank, owned by Salford Capital Partners, a London-based private equity firm, which manages Patarkatsishvili's business assets in Georgia. On November 24, Standard Bank, one of the country's largest retail banks, was placed under the temporary administration of the National Bank of Georgia, a measure usually taken when there is concern about the liquidity of a bank's assets.
Speaking to New Europe, Peter Nagle of Salford Capital said: "Standard Bank was seized by the Georgian authorities on 24 November. This was part of a series of attacks and confiscation of assets believed to be related to Badri Patarkatsishvili, a presidential opposition candidate."
"When the bank was seized it was in full compliance with all Georgian Banking requirements, particularly those related to liquidity. This attack on private property raises serious questions about the actions of the Georgian Government and potential conflicts of interests related to the Bank of Georgia. It sets a very poor precedent and signal for foreign investment into Georgia. We are especially unhappy about the detention and harassment of our employees."
On the other hand a National Bank of Georgia press release said that the central bank stepped in when it became apparent that Standard Bank was on the verge of bankruptcy. "We believe that this is due to the perception by the Georgian Government that Salford and its controlled companies are fully owned and controlled by Mr. Partarkatsishvili and have been used to actively support his political aspirations," Salford said in a statement.
The statement further explained, "In order to clarify this we wish to provide a clear explanation of Salford and its operations in Georgia and its relationship with Mr. Partarkatsishvili." "Salford is an international private equity firm that focuses on investments in CEE and CIS. Salford has offices in Moscow, Tbilisi, Kiev, Belgrade and London and employs approximately 35 professionals globally. Mr. Partarkatsishvili does not, (and never has) hold a direct or indirect beneficial financial interest in Salford nor does he participate in the management of Salford."
"Salford's advisory board members include Lord Bell (Chairman of Chime Communications Plc, Dr. Klaus Mangold (Former Vice Chairman Daimler Chrysler and Former Chairman Daimler Chrysler Financial Services) and Philip von Stauffenberg (CEO Solidus and former senior executive with Hicks Muse Furst & Tate and Warburg Pincus, two of the worlds leading private equity firms)."
Political observers and financial pundits have been unequivocal in raising doubts about the alleged motives behind these moves as the affected bank raised questions like:
"After the imposition of a state of emergency on November 7, a large number of the deposits (nearly 25 percent of total deposits) were withdrawn from Standard Bank in an attempt to create a artificial liquidity crisis, Why?"
"If indeed there were liquidity concerns, why prior to the seizure was there no engagement by the Regulator with Bank management or shareholders to discuss and remedy them?"
"Why has no written explanation been given to shareholders by the Regulator specifying the liquidity concerns?"
"Why has the Regulator refused to respond to written documentation from shareholders demonstrating that, at the time of the seizure, the Bank was in full compliance with all liquidity requirements?"
"Police from the Georgian Constitutional Security Department ("CSD") were present during the seizure. How do liquidity concerns at a Georgian bank represent a threat to Georgian national security?"
Commenting on the situation, Eugene Jaffe, CEO of Salford Capital Partners, stated: "This is an outrage - an artificial liquidity crisis engineered by the Georgian Government in order to seize a leading Georgian Bank for political motives; to the benefit of Bank of Georgia. All under the knowledge of the Prime Minister who knows better, I have not seen an abuse of power like this since Russia in the mid 1990's. This is a complete disregard for the rule of law and investor rights in Georgia - a truly appalling precedent has been set. We will take all means necessary to defend our interests."
Salford has engaged the international law firm of Debevoise & Plimpton LLP to represent it in this matter and has put the Georgian Government and Bank of Georgia on formal legal notice regarding this matter.
Subscribe to:
Posts (Atom)
Posts
