Last year Transparency International Georgia (TI Georgia) sent to the Chief Prosecutor’s Office all the materials from its report (published on 10 December 2012) that dealt with the scandal surrounding the construction projects administered by the Center Point Group. On 21 December, 2012, the Prosecutor’s Office informed us that those materials had been referred to the Anti-corruption Department for further examination, but since then they have sent us no new notifications.

It is worthy to note, that during that same December an interview was published with one of the Center Point Group founders, Maya Rcheulishvili.  She stated that the agreement in which the Center Point Group entrusted the management of their property to Dexus, concluded on 7 September, 2010, came as a direct result of threats from Dexus. Mrs. Rcheulishvili further claims that Dexus demanded the Center Point Group founders to pay 4.6 million Gel as a compensation of the entrusted property management services. In addition, the Center Point Group founders would be fined for $100,000 for giving a public interview without prior agreement with Dexus. In a following interview Mrs. Rcheulishvili called Dexus’s management  “very rude and far from ethical”.   

On 26 February, 2013, the Center Point Group founders submitted an application to the National Public Registry, requesting the termination of the agreement made with Dexus on 7 September, 2010 before its expiration date (31 December, 2013). Their grounds: the improper fulfillment of responsibilities by Dexus which, in their own words, was causing bankruptcy of those construction companies handed over to Dexus’ management.  

On 4 March, 2013, the Public Registry granted this request and terminated the above agreement. This now means that the management of 70 different construction companies - all part of the Center Point Group consortium - is returning to Rusudan Kervalishvili, Maya Rcheulishvili and Vakhhtang Rcheulishvili. In a letter posted on Facebook addressed to those customers who had been affected by Center Point Group’s activities, Mr. Rcheulishvili said that the company is intending to fulfill its duties and shall in time provide them with their apartments.  

The investigation into the Center Point Group case is still in progress at the Prosecutor’s Office. By placing calls  to the relevant state agencies and the founders of the Center Point Group, TI Georgia is trying to insure that those responsible take maximum account for the customers’ interests. This means first and foremost that those apartments purchased by the customers should be built and eventually handed over to their rightful owners.

For our part, we will continue to monitor the processes, bring forward important issues, and assist the victims in their communications with the relevant agencies.