The commission selected the Pension Agency board, among the selected candidates, three are foreigners and 5 are Georgians.
According to the assessment of the PMC Research Center director, there are no questions regarding the professionalism of the majority of the board members. However, according to Giorgi Khishtovani, issues concerning the degree of independence are emerging.
As Kishtovani told BMG, since the members of the governing board are appointed by the Prime Minister and will also be accountable to him, this creates a risk that the board will not be independent in investment decisions.
"Some members of the board truly have impressive experience, while others appear to have relatively less experience. Generally, except for 1-2 members, in my opinion, the issue of compatibility is not in question. The fact that board members are appointed and then accountable to the government and [their appointment] is directly decided by the Prime Minister means that potential risks regarding the management of pension funds are significantly increased.
More specifically, we know how Georgia lacks capital for new large projects. In fact, the previous parliament created all the foundations for a relatively less autonomous board, allowing the pension agency to engage in state projects and finance similar types of projects. When this board will be accountable to the Prime Minister, who will simultaneously be the initiator of state projects, in my view, this clearly carries a risk of conflict of interest.
Given that this board is accountable to the Prime Minister and not to parliament, I see a risk that the board may show readiness for loyalty and make decisions that will be desirable for the government rather than for the employed pension savers," - stated Goga Kishtovani.
