"For several months, I have been fighting hard to bring foreign investors into our mining sector. Mining is one of the best sectors we can use to boost the economy. Mining is one of the leading sources of foreign exchange earnings.
There I wanted to bring English and Canadian companies and raise reputation of this sector in Georgia, as well as qualifications of local workers.
In this regard, we had encountered great resistance from various government agencies.
You know, that propjets are approved by the governments. However, that initiative had been delayed for several times. I did not know why it happened so, but finally they told me - “why are you struggling to bring those companies? – we guess the reason, supposedly you have private interests related to them”. They blamed me for corruption and dealing with those companies.
Meanwhile, former minister of Economy has declared, that the largest state companies, including railway and energy system are under the influence of “schematics”. According to Kobulia, those “schematics” oppose the reform of electricity and railway transport market.
Giorgi Kobulia – about the corruption:
There are “schematics” in the public sector, who are making some schemes. The same can be said about railway, electricity and other sectors as well. They are doing their best not to carry on the reforms. If modernization and reforms take place, they will lose their schemes.
For more illustration, Georgian Railway is one of the largest state structures, which needs modernization and it will give impetus for economic development. There are biased contracts in Georgian Railway, exclusions are issued on shipments of some cargo and so on. If we want to grow efficiency of the railway and make partial privatization of the sector, those schemes will collapse.
As for the energy sector, there are intermediary companies on imports. Respectively, those intermediary companies do not want modernization of our import infrastructure.
There are number of possibilities that could allow us to import electricity more cheaply and better stabilize our energy system. However, those sitting there in some structures are hindering us. I have also given you example of a mining sector, where supposedly one or two companies control the whole sector, while bringing new companies and increasing competition is resisted.
Those “schematics” hinder us to make reforms and incorrectly use people’s money. Moreover, these schemes and their permanence makes demotivation. As I know, all qualified staff has left the Railway. How can you increase efficiency, when you know what is happening inside? –we are talking about that", - said Giorgi Kobulia, a former economy minister.
Giorgi Kobulia - Interview:
