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Illegal Gun Trade and Davit Kezerashvili

January 16, 2012

Vakhtang Maisuradze,www.tribuna.ge

Georgia will pay 35 million US dollars to the Elbit Systems Ltd. international defense Electronics Company based in Israeli. The company published the statement on its website.

Elbit Systems Ltd submitted complaint against the Georgian government in High Court of Justice of United Kingdom in April of 2011. The company is disputing over the alleged violation of contract made in 2007 and requests 100 million dollars as compensation.

“According to the settlement, Georgia will pay the Company an amount of approximately $35 million and will also return to the Company certain equipment and sub-systems, that were supplied to Georgia by the Company in the past, against the full release of the initial claims,” – reads the statement of the company released on December 29th.

Georgian Ministry of Defense refused the existence of dispute with Israeli Compoany. In May of 2011, the head of press service of Defense Ministry Salome Makharadze stated: “I can tell you officially that the Ministry of Defense of Georgia owes nothing to Elbit Systems Ltd or anybody else.”

The similar statement was made in the Ministry of Foreign Affairs of Georgia after the company submitted complaint against Georgia in the High Court of Justice of United Kingdom.

“We know that the complaint has been submitted to the court of arbitration… According to our information, Defense Ministry of Georgia not only has no military debt, but there are many military companies which owe money to Georgia side unfortunately,” – deputy head of Ministry of Foreign Affairs Nino Kalandadze noted on April 18th of 2011.

According to the disseminated information, Georgia purchases Herme450 unmanned helicopters. However, official information is unknown since the contract made between the Defense Ministry and Elbit Systems Ltd is secret.

According to the Voice of America, the contract with Israeli-based Company was made through the private contacts of President Mikheil Saakashvili and the former Minister of Defense, currently a businessman and the head of “Council of Friends” of Theater of Opera and Ballet of Georgia.

While making a contract with Georgia, Elbit Systems Ltd was represented by Shlomo Milo and his brother, former mayor of Telaviv Roni Milo. The latter one had a status of advisor of the former Minister of Defense Davit Kezerashvili. According to western media, the brothers sold weapons of approximately 200 million dollars value.

The issue of gun trade with Georgia received attention in the case filed against the illegal gun traders in 2009 in USA. One of the defendants Daniel Alvares noted back then that he traded with the Ministry of Defense of Georgia by corruptive scheme and linked Georgian department to gun producers of Israeli.

“Alvares would facilitate the sale of military and law enforcement equipment to the government of Georgia with the assistance of corrupt sales agents, knowing that the sales agents would make corrupt payments to Georgian government officials to assist in obtaining and retaining business from the government of Georgia” – notes the official document published on the website of US Justice Department.

According to the document, Alvares received sums from the contracts made between the Israeli businessmen and representatives of Georgian government.

According to the document, according to Alvares’s confessions, in 2008 Georgia purchased military equipment worth 10 million US dollars through the contracts made with the businessmen.

Though Georgia is a part of such a serious international case, Georgian law enforcement has not started investigation on this case yet.

Davit Kezerashvili left the politics on December 5th of 2008 and is occupied with business currently. Kezerashvili who is a citizen of Israeli and Georgia, states that he is one of the owners oil company Galf.

The Lottery Company of Georgia is linked to his name as well. However, he denies information on having ownership of the company.

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