An investigation by the international investigative media outlet Follow the Money (FTM) reveals that Irakli Rukhadze, the owner of the pro-government TV channel Imedi, conducts his business interests through the Netherlands. The parent company of Imedi, known for spreading disinformation and anti-Western propaganda, is also registered in Amsterdam.
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FTM and Transparency International analyzed the Georgian and Dutch annual financial reports of companies owned by Rukhadze and found that four of the six firms were registered in the Netherlands, a country with a favorable tax environment. These companies include Media Finance Group, the owner of Imedi, as well as the parent companies of Liberty Bank, Rustavi Steel, and Hunnewell Cement (formerly Georgian Cement).
Rustavi Steel and Hunnewell Cement are among Georgia's 30 largest companies by turnover, while Liberty Bank is one of the country's biggest commercial banks and holds a near monopoly on pension provision.
According to the journalistic investigation, Hunnewell Cement's parent company, CaucasusCement Holding, was partially acquired by a private equity fund founded by Bidzina Ivanishvili, the honorary chairman of Georgian Dream.
The article notes that there have been increasing calls in the Netherlands recently to sanction Ivanishvili and Rukhadze due to their Dutch business links. However, FTM suggests it's unlikely the Dutch government will heed these calls.
"The government considers it undesirable for Dutch structures to finance foreign news channels that spread disinformation.
However, as long as they comply with existing laws and regulations, their actions are not punishable," wrote Dutch Foreign Minister Caspar Veldkamp in March.
Hunnewell Partners, Irakli Rukhadze's UK-based investment company and the main shareholder of Imedi TV, denies any wrongdoing or illegality. "We comply fully with Dutch laws and regulations," the company stated in its response to FTM. However, FTM writes that there are grounds to doubt this statement.
Specifically, since 2021, the directors of Hunnewell Cement have not signed the company's annual financial statements, reportedly awaiting the completion of an audit. FTM points out that while an auditor's report is not legally required in the Netherlands, filing annual statements signed by directors is mandatory. Without these signatures, the document cannot be adopted and lacks official status. When asked by FTM, a spokesperson for the Netherlands' Chamber of Commerce stated that there have been "three economic crimes" in this case, one for each financial year since 2021, for which the accounts lacked director signatures. The latest annual reports of Imedi's parent company also lack the signatures of the trust office directors.
Today, July 10, it was announced that Liberty Bank is being sold to BasisBank. The National Bank of Georgia has begun reviewing this matter.
