GPB Director Should be Held Responsible - IDFI

Natia Dzvelishvili, Media.ge

The Institute for Development of Freedom of Information (IDFI) believes that the Director General of the Georgian Public Broadcasting (GPB) should be held responsible. The ground for the allegation, according to IDFI data, is additional tax arrears, in addition to GEL 3,800,000.

In line with the information gleaned by the organization the broadcaster still failed to pay tax arrears even though its revenue produced in the past few years was going up. According to the papers posted on the IDFI blog in 2009 the GPB revenue amounted to GEL 3 mln to top GEL 6 in 2010. In the following year this figure increased by 1 mln, plus millions of GEL apportioned from the State budget.

On July 7, 2008 GPB was allowed credit of GEL 4, 226, 392 to provide financial backing to finalize the arbitration dispute between Georgia party and Eutelast SA. December 31, 2012 was set as the deadline to pay the credit off. The public broadcaster was provided a payment schedule according to which the broadcaster was to have GEL 300,000 paid by the end of 2009.

“On April 1, 2009 the GPB Director addressed the Minister of Finance to take into account GPB’s financial problems due to world crisis and the 2008  war and change the proposed payment schedule according to which the broadcaster was to have GEL 50,000 paid by November 25, 2009 instead of GEL 300,000,” reads the data provided in the IDFI blog.

The Minster of Finance consented to GPB’s suggestion, the latter though did not pay the amount set by the new schedule. Ultimately the Ministry of Finance sued the broadcaster.

Seemingly the broadcaster did not pay the sum even after that. On October 16, 2012 GPB’s Director General Gia Chanturia addressed the Ministry of Finance with a request to fully or partially forgive the credit debt (principal amount – GEL 4, 226, 392) and the accrued penalty (GEL 900, 461.4).

“Notwithstanding GPB’s growing revenue the management of the public institution, throughout four years, was unable to fulfill its liability to the State – to pay interest-free credit of GEL 4, 226, 392 and the penalty of GEL 900, 461.4,” reads the blog.

Prior to that, on October 9, 2012 Chanturia sent the Finance Minister Alexander Khetaguri a letter according to which, the GPB First Channel management failed to mobilize commercial revenue in a timely manner, hence the public broadcaster made a request from the State budget for additional GEL 3, 000, 000 to secure GPB’s effective operation by the end of 2012.

According to IDFI, in addition to the financial aid received from the government the broadcaster utilized bank loans (in 2011 the Public Broadcasting owed bank GEL 3, 465, 000), plus GPB’s tax arrear. Presenting proof to that the Finance Minister Nodar Khaduri stated since October 10, 2010 GPB has accrued the debt of GEL 3,800,000.

The risk of cash shortage incurred within the framework of 46-million budgetary funding, debts accumulated throughout years to commercial and governmental agencies, offers ground, to hold the GPB’s steering circle responsible, – IDFI believes.