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AYFB: Developments around RMG Gold Give Negative Signal to Investors

Association of Young Financiers and Businessmen (AYFB) expresses confusion regarding the recent developments around RMG Gold. Namely, 13 political parties demand for abolishing auction for 16 hectare land nearby LLC RGM Gold in the village of Didi Dmanisi. According to representatives of these political parties, this is an illegal auction and they ask Minister of Economy and Sustainable Development Dimitri Kumsishvili and Chairperson of National Property Agency Ekaterine Sisauri for abolishing this auction.

Since no political party has named specific law violation facts as a ground for auction abolition, AYFB has examined the auction terms to clarify which articles could had been violated. The examination process has not exposed any fact of breaking and/or ignoring the law. Therefore, AYFB declares that the mentioned auction fully complies with provision on managing state property in the form of public auction.

Consequently, it is unclear why these political parties demand for annulling the auction and abolishing its terms. AYFB is sure that the mentioned activity directly violates the right of a private investor and restricts its economic activity. This fact encroaches on Georgia’s investment environment. Moreover, these accusations have not legal ground and directly threaten the company operation, which replenishes the local budget by about 80%.

AYFB believes that the country has been taking unprecedented efforts for improving investment climate in the country and similar unsubstantiated accusations and rude interference in legally operating company seriously damages the international, investment image and reputation of the country. AYFB urges Ekaterine Sisauri, Chairperson of National Property Agency, and Ministry of Economy not to halt absolutely legal auction and not to restrict the private investor’s operation.