Mamuka Khazaradze and Badri Japaridze are quitting Supervisory Board of TBC Bank, however, they will maintain their positions as the Chairman and Deputy Chairman of the Board of Directors of TBC Bank Group PLC, – reads today’s joint statement of National Bank of Georgia and TBC Bank.

The announcement of TBC Bank reads as follows:

“Since TBC Bank takes into account the possible damage to the country’s investment image and respects the role of the National Bank, as a qualified regulator, and despite the fact that the decisions of the National Bank was appealed in the court, JSC TBC Bank would like to announce that it will implement a restructuring of its Supervisory Board whereby the founding shareholders will not be represented at the supervisory Board of JSC TBC Bank. The founding shareholders will maintain their positions as the Chairman and Deputy Chairman of the Board of Directors of TBC Bank Group PLC (a London-based, 100% shareholder of JSC TBC Bank). TBC Bank withdraws all court cases against the National Bank of Georgia and will pay approximately GEL 1 million, which was previously requested by the NBG and disclosed by TBC PLC on 9 January 2019.

In addition, TBC Bank continues to cooperate with the NBG to further improve the quality of the Bank’s corporate governance. In order to prevent any questions from any third party regarding corporate governance, TBC PLC will engage with a reputable international firm to conduct a review of the group’s related party transactions, practices and procedures.”

Mamuka Khazaradze, chairman of TBC Bank’s Supervisory Board left the post in TBC Bank. He has released the regarding statement on social network today. “I will continue to legally defend my rights as a private person in Georgia and abroad”, – the statement of Khazaradze reads.

The National Bank of Georgia (NBG) suspended the right of documents’ signing to Mamuka Khazaradze, Chairman of Supervisory Board of TBC Bank and his deputy Badri Japaridze. The decision was made during the sitting of NBG’s Supervisory Committee of Finance Sector on February 13, 2019. The National Bank of Georgia (NBG) gave TBC Bank’s shareholders two months notice to remove the Chairman of the Supervisory Board, Mamuka Khazaradze and his deputy Badri Japaridze from the Supervisory Board.

The Chief Prosecutor’s Office of Georgia launched criminal investigation on the fact of legalization of illegal income on 2 August 2018. As the Prosecutor’s Office announced earlier in January, TBC Bank is facing criminal investigation over money-laundering allegations involving a USD 17 million transaction that took place in 2008.