Any statement on financial difficulties in Public Broadcaster is  groundless and incompetent
Any statement on financial difficulties in Public Broadcaster is groundless and incompetent

We would like to respond to the groundless, incompetent and incorrect statements that are disseminate about the financial condition of the Public Broadcaster in recent days.

Certain individuals and organizations try to dramatize the situation and demonstrate as if the Broadcaster hides some type of information and seeks a loan due to financial difficulties.

We would like to emphasize that the Public Broadcaster is the only financially transparent television in Georgia and any expense of the organization is controlled by the Board of Trustees, the Parliament of Georgia, the State Audit Office and the independent external audit.

In order to remedy poor technical condition in the television, the management has developed a technical re-equipment plan that can be implemented only with credit resources, since not only Public Broadcaster, but also any other television or organization is unable to pay such large sums at once. The plan on technical re-equipment costs about 45 million GEL and negotiations with financial institutions are underway.

It is indisputable that the financial institutions do not issue such kind of credits without targeting and carry out strict control over credit spending.

In addition, certain individuals and organizations are trying to break through the opened door and get information through the court which does not exist yet. It is about the documentation on credit application. The broadcaster’s management sent a general scheme on loan, its purpose and loan repayments to the Board of Trustees for getting consent for starting negotiations.  Accordingly, detailed plan, tender documentation, scheme of financing, loan parameters – maturity, interest rate and all other details should be worked out only through the consent of the Board of Trustees and this process is in progress. At this stage, the document is being processed and its final version does not exist yet.

It is noteworthy that the financial institutions, having negotiations with, are studying the financial situation of the Broadcaster, assessing the risks and if financial difficulties are discovered, they will refuse to issue loan.

Accordingly the Public Broadcaster:

– Is unable to take loan without the consent of the Ministry of Finance;

– Is unable to take loan without the consent of the Board of Trustees;

– Is unable to take loan without a detailed plan which should be submitted to the financial institution;

– Cannot spend a penny without a pre-defined purpose of the loan taken;

– Purchase equipment should be used for loan securing.

Consequently, the opinions and suspicions that the Public Broadcaster plans to take a loan for other purposes and for technical re-equipment are groundless, incompetent and frivolous. Consequently, We deem it as an attempt to cast a shadow on technical re-equipment process, which is implemented for the first time of Broadcaster’s existence.

We would like to clarify that the process of designing the new building of broadcaster is in active phase, as well as the process of selling the property owned by the Broadcaster; the received amount will be fully directed for constructing a new building at Poltkovskaya Street. This is the first time when broadcaster implements full infrastructural and technical upgrade. In order to achieve this goal, the Broadcaster has the appropriate resources and any statement on financial difficulties is an attempt to discredit this process.

The Public Broadcaster calls on all interested organizations to avoid any unreasonable statements that may mislead them, to verify the information and after that take a reasonable decision.

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