Scheme of Monopolist winner of Mini-Bus Tender

How Gigi Ugulava and businessman Sharangias are connected to the winner companies of the Tbilisi municipality’s tender

Giorgi Putkaradze, Mteli Kvira (all week)

The winner companies of the Tbilisi municipality’s tender are the shareholders of James Group Company where they hold high posts. Some of them are long-time acquaintances of Tbilisi Mayor that is confirmed by the concrete documentation.

The Scheme is such: on the one hand, James Group is linked to Tbilisi Mayor Gigi Ugulava, on the other hand brothers Sharangias, representatives of James Group are linked to the government.

The documentation obtained by Mteli Kvira reveals how the founders of the winner companies of tender are linked to James Group, Mayor Gigi Ugulava and businessman Sharangias.

Last year, in the contest of Tbilisi City Hall, Ltd Tbil Line won the right to control the transportation routes of Vake-Saburtalo and Gldani-Nadzaladevi region, Ltd Capital Group – the region of Old Tbilisi and Didgori, Ltd Tbil Car – Didube-Chughureti, Tbil Car – Isani-Samgori. According to the data of public registry national agency, 100% share of Ltd Capital Group belongs to Nodar Gigineishvili (born in Sokhumi) according to the data of December 31st, 2009. However, before that, on December 8th of the same year, the meeting of partners was held and Gocha Ddzneladze, the owner of 50% share of the company transferred his share to the ownership of another owner Nodar Gigienishvili. The corresponding fact was confirmed by the notary Nunu Ginturi on December 9th of the same year. Gocha Dzneladze was given hundred GEL for his share. Capital Group is registered in Old Tbilisi, at #9 Marjanishvili St. The company Public Car which won the city hall tender was founded by Khvicha Sekania on December 17, 2010 (born in Ochamchire, #31 Prunze St). The statutory capital of the company is hundred GEL. Sekania is an owner of 100% of the Ltd. The documents are confirmed by the same notary Nunu Ginturi. Besides, the director of Ltd Kalakuri (restaurant Kalakuri) belonging to the Company GMC’s ownership agrees to provide space for Ltd Public car on December 20th.

According to Public Registry, one more winner company Ltd Tbil Line is founded on December 17, 2010. 100% share of the company belongs to Gia Gagoshidze (born in Ochamchire, #100 Ninoshvili St). On the same day he presents the company statute to the notary Nunu Ginturi. She confirms the statute. The statutory capital of the company amounts to 100 GEL. On the same day of December 17th, the director of PKC Group restaurant Dzveli Sakhli (old house) Nikoloz Mamageishvili signs the document according to which he agrees to provide space for Ltd Tbil Line.

One more winner company Ltd Tbil Car was founded on January 4 of 2011 by Tengiz Alpenidze (born in Ochamchire, #10 Gudauta St). The statutory capital of the company was 100 GEL. Alpenidze is the owner of 100% share. On the same day notary Nunu Ginturi confirms Tbil Car’s statute. The director of Dzveli Sakhli Nikoloz Mamageishvili agrees to provide space for Ltd Tbil Car.

One of the most interesting coincidences is that besides the fact that the statutes of Tbil Car, Public Car and Tbil Line are identical the statutory capital of the companies 100-100 GEL is confirmed by the same notary. The owners paid tax in the same bank office by 5 minute interval. Moreover, out of four companies, the owners of three are from Ochamchire by origin and are almost the same age.

Public Car owner Khvicha Sekania is the director of Ltd Tbilisi Parking as well which is situated at #6 Marjanishvili St. and is founded by Tbilisi City hall. Tbilisi Parking collects the parking taxes. Sekania is also a director of municipal company of Mushtaidi (Mushtaidi Park). According to Tina Khidasheli from Republican Party, Tbilisi Parking founded by City Hall in 2009 was involved in the election campaign of Gigi Ugulava in the 2010 local government elections. These companies were founded on the basis of municipal property. The head of Tbilisi Property Management Agency appointed directors according to Gigi Ugulava’s decree.

The owner of Capital Group Nodar Gigineishvili is the shareholder of Ltd GMC Group located in #3 Sanapiro St. more specifically GMC Holding owns 65.6% of the shares, the Joint Stock Company – 20% of Georgian People’s Bank and Gigineishvili – 14.4%.

As for Gagoshidze, except for owning the largest component of the tender – Vake-Saburtalo and Gldani-Nadzaladevi region and being a director of Tbil Line, he is also a founder and a director of GMC store. Since December 3 of 2008 Gagoshidze is an individual head of GMC store, and Ltd GMC Group is owner of 100% share. GMC store is situated at #3 Sanapiro St. of Old Tbilisi (restaurant Old Sakhli territory).

Gagoshidze’s name is noted in one more document linked to Tbilisi City Hall and a decree of mayor. According to Tbilisi City Hall decision, on February 26th of 2010 Ltd Property Didube was renamed to Ltd Sportuli Ezo (Sport Yard). He was given right of free usufruct on 1500 square meter land at Kazbegi avenue (park territory) the cost of which 875 750 GEL. The head of the city service Valerian Gvatua appointed Gia Gagoshidze to a post of director of sport yard on march 3, 2010. The owner of 100% remains Tbilisi City hall.

On June 23rd of the same year Gagoshidze transfers 100% share of Sport Yard with a 35-year right of control to a physical entity Khvicha Makatsaria. Makatsaria is also from Ochamchire by origin. Despite the fact the Tbilisi City Hall remains the owner of 100% share of the property Makatsaria started building its own palace in this territory.

In the #16.10.794 decree of Gigi Ugulava signed on May 28th, it is stated Ugulava agrees on transferring right of control to Makatsaria. On August 11 of 2010, according to public registry documents, Makatsaria appointed Zurab Urgebadze as a new director of the company. The documents are confirmed by notary Nunu Ginturi. As for the agreement of transfer of sports yard, Makatsaria had addressed Tbilisi City hall on March 30th on its transfer to Tbilisi City hall and according to contract he will pay only 100 GEL to Tbilisi City hall.

Khvicha Makatsaria is one of the owners of GMC Group (this is how it is mentioned on the website of Sports and Youth Ministry). Gia Gagoshidze is a director of GMC store subjected to GMC group. On November 14th of 2008, at the elections of Tennis Federation President, where Leila Meskhi won, Makatsaria was appointed to the post of Vice-President and is mentioned to be the shareholder of GMC group. Makatsaria was pursuing a businessman in Russia. The purchase of Georgian embassy and consulate in Moscow in connected to his name.

Khvicha Makatsaria’s name is connected to brothers Sharangias, more specifically in the oil industry. They are the shareholders of the joint-stock company Gain Oil in Moscow. Khvicha Makatsaria and a brother of Merab Sharangia, businessman Revaz Sharangia (patronymic Lorentso) own 22,3-22,3% of the company like Revaz (Buta) Eliava. This information was provided by information-analytical internet-portal www.lin.ru that has data on the owners of companies operating in Russia.

Revaz Sharangia’s brother Merab Sharangia is one of the shareholders of Bee Line and a deputy head of Georgian representation of Bee Line Mobitel. He is an owner of restaurant Kalakuri (that also belongs to James Group ownership) and one of the complexes situated in the territory of ‘Deserters’ Open Market. Brothers Sharangias are also from Ochamchire by origin like their father businessman Lorentso Sharangia residing in Russia. The ex-minister of defense Irakli Okruashvili stated several years ago that Sharangias are close acquaintances of the President. According to him, Georgian railway was transferred to Saakashvili’s “palaxe businessman” Rezo Sharangia.

Gia Sharangia lives and works in Tbilisi. His brother Shota works in Adjara law-enforcement bodies, Levan lives in Russia and owns rather large business.

Opposition considers Revaz Eliava, a business partner of Rezo Sharangia and Khvicha Makatsaria to be the shareholder of Bee Line. Rezo Sharangia had rather close relationship with the former ambassador of Georgia in Russia Kote Kemularia. Sharangia even attended a festival Song to Russia in Samegrelo two years ago. The current Minister of Culture Nikoloz Rurua was with him back then.

Member of the Tbilisi City Council Tina Khidasheli said the Tbilisi City Mayor Gigi Ugulava had personal interests in this business. On the one hand, thousands of people were self-employed in this business and did not have to beg the government for money; similar people always create problem for the government. One the other hand, it is completely corruptive project which employs friends in the business.

“Gagoshidze is the key to the entire scheme. One arrow goes to the GMC Group and the second to the Tbilisi City Hall because the municipal enterprise “Sport Yard” was created based on Gigi Ugulava’s instruction; initially Gagoshidze occupied the position of the director in it and later the enterprise was assigned to Makatsaria.

“During the recent parliamentary elections, I argued with Makatsaria about the construction in the park on Kazbegi Avenue; he had received permission on the construction without problem. Later, when I gave briefing in the City Council, the City Hall categorically denied any cooperation with these people,” said Khidasheli and added that he was monopolist who makes decisions according to his own wishes.

The member of the City Council spoke about the necessity to review the agreements. The deputy chairman of the Tbilisi City Council Mamuka Akhvlediani said the City Hall focused on the import of new mini-buses into the capital and promised that traveling fee will not increase for passengers and drivers will not have to pay additional taxes to the budget.

The head of the Transport Service Department at the Tbilisi City Hall Akaki Jokhadze said he did not have information about monopolists and four different companies won the tender in the capital. “You can check the information with the winning companies. I have no information about their connection with the GMC Group,” Jokhadze told the newspaper “Mteli Kvira”.

Representative of the TbilLine Davit Asanidze said there is no connection between Gagoshidze and GMC Group at all. It is noteworthy that Asanidze holds meetings in the name of all four winning companies and two days ago he answered the questions of the opposition parties about the protest rally of the mini-bus drivers.

Davit Asanidze: It makes no difference that Gagoshidze founded the GMC warehouse! Cannot one person work in two different companies?

“Mteli Kvira”: Then, why do you allege that there is no connection between your companies?

Davit Asanidze: Yes, there is no connection between us but one person works in both companies. I know him from the restaurant. Is it connection?

“Mteli Kvira” continues to work on this topic in future too.