Finance Minister Resigns

Georgian Finance Minister Valery Chechelashvili filed resignation on June 29, after the high-profile arrests conducted by the police in the country?s Tax Department involving corruption charges.

It is not known yet who will take over the Finance Minister?s office.

Chief of the Tbilisi Tax Department Temur Dvali, his deputy and several other officials of the Department were arrested on June 29 for alleged bribery. One of the charges involve taking of 150,000 Lari as a bribe in exchange of writing-off 3 million Lari of tax payment from one of the private firms.

The case prompted President Saakashvili to demand from Prime Minister Zurab Nogaideli to, as he put it, ?consider responsibility of the Finance Minister? and to carry out ?fundamental and urgent reforms? in the system.

?I have no doubts that [ex-Finance Minister Valery] Chechelashvili is an honest person and a good professional, but it is not enough, it is important also not to have corrupt officials around you,? Saakashvili said, while addressing the cabinet members on June 29.

Saakashvili also said that despite this incident he is satisfied with the government?s performance and no major cabinet reshuffle is anticipated. ?We have a stable government,? he added.
 
Chechelashvili told reporters after the resignation that Saakashvili decision was ?fair.? He said that he did not know that there was such a high level of corruption in the Tax Department.

?It is clear that the system needs urgent and fundamental reforms? It is still possible to collect at least 100 million [the President did not specified the currency] in taxes, which we fail to do,? Saakashvili said.

Prime Minister Zurab Nogaideli said at a news conference on June 29 that Chechelashvili is a good professional and ?will return back to the diplomatic activities.?

Valery Chechelashvili was Georgia?s Ambassador to Russia before the appointment as the Finance Minister in February. He replaced on this position Zurab Nogaideli, who took over the Prime Minister?s position after Zurab Zhvania?s sudden death.

According to some unofficial reports, after Zhvania?s death, Valery Chechelashvili was one of the possible candidacies for the Prime Minister?s position, strongly supported by Parliamentary Chairperson Nino Burjanadze.

Reportedly, after Chechelashvili?s resignation all the top level officials of the Tax Department filed resignations except of newly appointed chief of Tax Department Vazha Petriashvili.

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