New

Civic IDEA’s work has been featured in the 2021 publication of Carnegie Endowment for International Peace, “China’s Influence in Southeastern, Central, and Eastern Europe Vulnerabilities and Resilience in Four Countries”. Part of the research concerns the Chinese influence and the activities of the notorious Chinese companies in Georgia, as well as, the PRC academic initiatives and its Covid-19 diplomacy in the country. Civic IDEA’s research is attributed to well-demonstrated uncertainties associated with the Georgia-China economic cooperation. 
Below we provide an extract from the Carnegie research mentioning Civic IDEA:
“Georgian civil society organizations and experts—such as former defense minister Tinatin Khidasheli, now of Civic IDEA and Transparency International Georgia—enumerate multiple concerns about Sinohydro’s reputation, lack of transparency, and close relations with some government officials. The company has been blacklisted by the African Development Bank. The Georgian government’s transparency portal offered no record of how Sinohydro’s qualifications were assessed.

The China Railway 23rd Bureau Group is also controversial. The company has powerful backers in China. Initially the railway troops of the PLA, it became part of China’s Ministry of Railways. In 1989, the China Railway Construction Corporation was established as a stateowned enterprise. In June 2019, the World Bank announced “the nine-month debarment of China Railway Construction Corporation Ltd. (CRCC), a Chinese, state-owned construction and engineering company, and its wholly-owned subsidiaries, China Railway 23rd Bureau Group Co., Ltd. (CR23) and China Railway Construction Corporation (International) Limited (CRCC International), in connection with misconduct under the East-West Highway Corridor Improvement Project in Georgia.”This did not prevent the company from winning the contract for the new north-south bypass road shortly afterward.”

Check the full report below ?

In 2018-2020, “Civic IDEA” intensively published research concerning the shady links of Georgian political/business elite representatives with the notorious Chinese companies. Among them was a study named “Chkhartishvili Leads in China’s ”Closed Business Championship'”. According to our research and analysis of the materials found, the interests of CEFC China Energy, a company that has been exposed in many criminal cases in different countries of the world, were pursued by former Prime Minister Bidzina Ivanishvili and Vice Prime Minister of Eduard Shevardnadze’s government and Minister of Economy, Ivane Chkhartishvili.

The findings presented in the reports published by us over the years are fully corroborated by the Pandora documents published by the International Consortium of Investigative Journalists in late September 2021, portraying the links between the former Prime Minister of Georgia and Brightstone Finance Limited registered in the Virgin Islands.

This report is a continuation of the studies published by us in 2018-2020. We will tell you how the judicial and the executive branches of government handed over one of the most important strategic assets of Georgia – the Poti Free Industrial Zone, to the bankrupt Chinese company CEFC China Energy. The report will also evaluate how Poti FIZ was brought under the total control of Bidzina Ivanishvili and Ivane Chkhartishvili after the bankruptcy of the Chinese CEFC. The court decision, which can not withstand any criticism, serves the sole purpose of retaining complete control of the former prime minister on Poti FIZ and preventing the return of property to the state.

Download report from here ?

https://www.facebook.com/tvpirveli/videos/209319291288503

https://www.facebook.com/tvpirveli/videos/2362796507187165

https://www.facebook.com/TvMtavari/videos/200362635500407

Civic IDEA’s China Watch Report N7 deals with misconduct related to the activities of the Chinese company “China Road and Bridge Corporation” (CRBC) in Georgia, tenders won illegally, violations related to labor rights, and shady practices in various countries worldwide. The company is collaborating with the Georgian Roads Department on two major infrastructure projects. Like other Chinese companies in Georgia, it was blacklisted by the World Bank in 2009 for fraudulent conduct in the tender of the first phase of the Philippine National Road Improvement and Management Program (NRIMP 1). CRBC was banned from participating in all World Bank-funded infrastructure projects for eight years. The mismanagement of the Chinese company in Georgia is mainly related to the violation of labor safety rules. In particular, China Road and Bridge Corporation did not adhere to minimum sanitary norms in the workplace, forced employees to work overtime and, most importantly, did not create labor safety conditions in the area, which endangered the health of local workers. The local Labor Inspectorate gave only a few recommendations to China Road and Bridge Corporation, and in fact, no sanctions were imposed on the company. Controversial activities of China Road and Bridge Corporation are also observed in Kenya, Uganda, Kyrgyzstan, Croatia and Ukraine. However, despite the shortcomings in other countries, the Georgian government continues to actively cooperate with the representatives of the Chinese company and sign new contracts with them.

More information about the activities of China Road and Bridge Corporation can be found at the following link ?

Annual-Report-ENG-1

Civic IDEA has published the 6th China Watch report “Nuctech Company Ltd. in Georgia”, which evaluates the controversies over the Chinese biggest security scanner distributor “Nuctech Company Ltd”. The latter covers the company’s cooperation with the Georgian government, fraudulent activities related to Georgian and foreign tender procedures, malfunctions of its security equipment, and corruption scandals worldwide. More specifically, the report discusses the cases of Georgia, Namibia, Taiwan, and Europe, reveals Nuctech’s military ties with the Russian Federation, and reviews the US adversarial policies towards it.

Chinese company Nuctech company limited first appeared on the Georgian market in March 2008. At that time, The Minister of Finance of Georgia, Nika Gilauri, signed an agreement with Nuctech Company Limited on behalf of the Government of Georgia. The contract was on the implementation of the project for the supply of inspection complexes to the Government of Georgia. According to the 2014 report of the State Audit Office, in 2012, within the framework of simplified procurements, two contracts were signed with Nuctech Company Limited for the purchase of stationary X-ray scanners (NUCTECH MB1215DE). The X-ray inspection system was to be delivered at the Kazbegi customs checkpoint. The total value of the procurement was 4,566,775 USD. Within the tenders announced by the Revenue Service in 2011-2013, participating suppliers filed several claims against the National Procurement Agency over the fact that the Revenue Service adapted required technical specification to the Nuctech Company Limited catalogs; also, they were so complicated that many suppliers were barred from participating. In 2018-2020, the Revenue Service purchased a total of 5,870,722.48 USD goods from Nuctech Company Limited through simplified procurement. The objects of procurements were the preventive and corrective maintenance service of the X-ray scanners owned by the Revenue Service. One of the countries that properly resist Nuctech and restricts its access to critical domestic industries is the United States. The US Transport Security Administration (TSA) banned Nuctech installations in 2014 and provided a detailed review of the company’s misconduct leaning on its international experiences in the classified document. Furthermore, the US government is calling on its European allies to restrict Nuctech’s access to public tenders and disregard the baggage screening equipment it provides. Moreover, the US government is calling on its European allies to restrict Nuctech’s access to public tenders and abandon its baggage screening equipment. However, today European states respond individually to the allegations against Nuctech and its activities. For example, while Nuctech has successfully won tenders in Estonia, Finland, and Croatia, the Lithuanian government has officially banned equipment manufactured by this company. We are often asked about the specific damage Nuctech can bring to the country. For instance, in Ukraine, Nuctech not only supplied incomplete and defective equipment to the Ukrainian customs checkpoints but even won the case against the State Security Bureau and the Ministry of Finance in court. Namibia also has a painful experience, as Beijing removed it from China’s internet search engines and imposed all kinds of media censorship on it all over the country just because the latter had launched an investigation regarding the Nuctech-related corruption scandal. The Chinese authorities removed Namibia because Hu Haifeng, the son of the Chinese Communist Party leader Hu Jintao, was involved in the corruption scandal there. Despite the global technological development, the Chinese Communist Party still effectively manages to ban undesirable internet searches from its population. It is noteworthy that in addition to expanding economic influence and participating in corrupt and fraudulent activities, Nuctech and its owner, Tsinghua University, also seek to spread influence through the academic sphere. The company works closely with St. Petersburg State University to develop high-energy X-ray machines, anti-terrorist equipment, and other technologies that have the potential of being used for military purposes.

Download link ?

Report-6

On January 23, 2021, based on the information spread by the Ministry of Defense of Georgia , it became known that through the active involvement of the State Defense Ministry, the above-mentioned Ukrainian company signed a trilateral memorandum with the Georgian State Military Scientific-Technical Center DELTA and Tbilisi Aircraft Manufacturing (TAM), also known as „JSC Tbilaviamsheni“.

In the official statement, we read that the cooperation and, consequently, the memorandum „aims to develop the military industry and modernize aircraft belonging to the defense forces.” The same disclosure announces that „the company is already repairing helicopter engines and gears owned by the defense forces.” However, previously, nothing was publicly known about the existing cooperation between the “JSC Tbilaviamsheni” and the Ukrainian company, disguised to strengthen Georgia’s defense capabilities. Information about the current contractual relations was later confirmed by the Ministry of Defense in a statement issued on January 31, 2021: „”The contract between the company “Motor Sich” and JSC “Tbilaviamsheni”, concerning the engines and the reduction gears of the Mi-24 helicopter gunships, has already been signed. The cooperation envisages modernization and repair of the engines of the Mi-24 combat helicopters.”

It is noteworthy to find out exactly when a cooperation agreement was signed between JSC “Tbilaviamsheni” and “Motor Sich”, as, since 2017, the company has been under constant investigation by the security services and represents an object of attention of our strategic partner, the United States. Unfortunately, such information is not publicly sought, suggesting that the Georgian side was well aware of its relationship with a controversial company with a damaged reputation and under investigation in various countries. Consequently, the state authorities did not disclose information about the cooperation. In June 2020, while presenting the Minister’s report to the Parliament, Irakli Gharibashvili, then Minister of Defense of Georgia, mentioned aviation development, among other issues. During the speech, he focused on the joint events planned with the Georgian State Military Scientific-Technical Center DELTA and Tbilisi Aircraft Manufacturing (TAM) “Tbilaviamsheni”. “As a result of the joint cooperation of JSC “Tbilaviamsheni” and “DELTA”, the preparatory works for the restoration-rehabilitation-modernization of the existing aircraft are underway. In particular, we will start the rehabilitation and upgrade process of Su-25 and Mi-24 military helicopters in Delta hangars very soon.”– commented Irakli Gharibashvili. The Ministry also referred to the Mi-24 rehabilitation agreement in its statement of January 31, 2021, as an ongoing contractual obligation between “Motor Sich” and JSC “Tbilaviamsheni”. We can assume that in June 2020, this collaboration was already established. Moreover, we should not forget that in 2019, the world media outlets already aired the warning to avoid the danger of being caught in China’s “debt trap” policy, brought to Kyiv by the US President’s National Security Adviser John Bolton. Bolton’s messages referred to “Motor Sich” and its new Chinese owners. In 2020, the media reported the ongoing investigation concerning the “potential financing of terrorism” by the company “Motor Sich”. The statements of the world media outlets and the testimonies of various countries, are overwhelmed with the claims, accusations, and suspicions against the company mentioned above. Special mention should be made that the ambiguities and problems surrounding “Motor Sich” became known as early as in 2014, when, despite the Russian occupation of Crimea and the ongoing military confrontation in eastern Ukraine, “Motor Sich” together with other Ukrainian companies, continued to cooperate with the Russian Armed Forces providing them with military needs. This fact was reported by the Washington Post in 2014.

REPORT:

5-report