Cheated shareholders demand withdrawal of immunity from vice-speaker
A protest action of shareholders cheated by the В Center Point Group developer company is taking place. It is headed by the vice-speaker of parliament from Joint National Movement Party, Rusudan Kervalishvili.
6 thousand people signed contracts for construction of houses with the company.
CPG has controlled 60% of the housing construction market in Georgia. In the last 10 years the company has signed contracts, undertaking to build 30 facilities. None of these buildings has been finished yet. The company bought new land for construction for shareholders’ money, hoping for a multiple increase in revenue. Many contracts were signed and money was paid by the shareholders before arrangements about infrastructure were made.
By the end of 2007, CPG delayed the majority of these construction projects. Accordingly, shareholders stopped paying regularly. These two facts created a vicious cycle. However, over 50% of shareholders paid the sum in full.
By 2011, shareholders united and started sharing information via social networks. The process culminated in a rally in front of the Parliament building. The participants demanded the withdrawal of immunity from the vice-speaker and for a suit to be filed against her on charges of embezzlement. Many shareholders sold their houses in order to pay their fees and now have to rent accommodation.
However, the contract signed by the shareholders is convoluted. The form makes it practically impossible to file a suit against the organizers, charge them for compensation or confiscate the property. The cheated shareholders relied on informal laws, not on statutary legislation.
Georgy Kalatozishvili. Exclusive to VK.
