OPIC FINANCING FOR OPEN REVOLUTION - GEORGIA JSC AND

UNCLAS TBILISI 001876

DEPT FOR EUR/CARC, EEB

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EINV EFIN GG
SUBJECT: OPIC FINANCING FOR OPEN REVOLUTION - GEORGIA JSC AND
MOBIGEORGIA-GSC

REF: STATE 100606


1. Summary: Per reftel, Post's inquiries revealed that Open
Revolution-Georgia JSC and MobiGeorgia-GSC are businesses in good
standing, although some contacts expressed reservations about the
Georgian partner of Open Revolution. End Summary.


2. Post has no negative information regarding Open
Revolution-Georgia JSC and MobiGeorgia-GSC or their executive
management listed in reftel; however, the Georgian partner of Open
Revolution, Mamuka Lobzhanidze, was previously connected to Russian
businesses (Bee Line, which is a mobile operator and GMC group,
which is a restaurant network) and has a business reputation that is
not fully positive. One investor told us that Lobzhandize had
provided misleading information to the fund in the past. A banking
sector contact said that Lobzhanidze had engaged in talks on a
proposal, negotiated an agreement, then unexpectedly withdrew.


3. Post's inquiries did not reveal any negative information
regarding links involving either the companies or their management
to money laundering or terrorism. Additionally, Post has no
information on government connections of the owners (at least
obvious or known).


4. The mobile banking sector is new to Georgia and has strong
potential, but would require significant effort to increase very low
public awareness and demand for mobile banking services. The
Georgian banking sector is sound.

LOGSDON