Georgian President Salome Zurabishvili refused to sign the amendments to the “Law on Funded Pensions” passed by the Parliament in the third and final reading on June 27. The President’s Parliamentary Secretary, Giorgi Mskhiladze, said, “This is not representing the return of the law to the Parliament with motivated objections, i.e., it not a veto,” but the President is sending back the bill for the Parliament Speaker to sign.
Before the amendments, the Pension Agency, to be renamed to the Pension Fund, was governed by two boards: the Investment Board and the Supervisory Board. The Investment Board had four foreign members appointed by the Parliament and was responsible for developing and creating the fund’s investment portfolio. The amendment, among others, merges the two into the Governing Board, consisting of nine to 15 members, who all be appointed by the Prime Minister of Georgia, thus minimizing the role of the Parliament in the Pension Fund.
“It is unacceptable and inadmissible to take this process out of the Parliament and to concentrate such power in the hands of the Prime Minister,” the President’s Parliamentary Secretary said at a briefing on July 12, adding that there is a risk the Governing Board will be staffed with those serving the ruling party interests.”
“This makes it possible for the fund’s investments to be aligned to the political decisions of the ruling party [and could be channeled] into various, less profitable government projects, thus not serving the best interests of the population,” he added.
Earlier today, the Speaker Shalva Papuashvili confirmed he will sign the amendments.
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