Djezzy owner launches USD 5 bln claim against Algeria govt

News Wireless Algeria 19 NOV 2012
Djezzy owner launches USD 5 bln claim against Algeria govt
Weather Investments announced the launch of a USD 5 billion claim against Algeria for damages to its stake in local mobile operator Djezzy. The claim has been registered by the International Centre for the Settlement of Investment Disputes (ICSID). Weather claims that Algeria has repeatedly breached its international legal obligations under an investment treaty between Algeria and the Belgo-Luxembourg Economic Union. When Weather's subsidiary Orascom Telecom Algerie won a licence in 2001 to build a mobile network in Algeria, the government committed to a number of protections, including a promise to refrain from arbitrary interference in operations, "but has since 2008 pursued a campaign of interference and harassment which has cost Weather Investments over USD 5 billion in damages", the company claims. This has included extraordinary tax claims, restrictions on foreign payments by Djezzy, security restrictions on certain operations, criminal investigations into some Djezzy employees and, most recently, the attempted forced sale of all or part of Djezzy to the Algerian state. Weather said it notified Algeria of the claims six months ago and has since tried to negotiate a settlement, to no avail. It said the other shareholders in Djezzy are pursing similar claims.

Categories:

Mobile

Companies:

Djezzy,  Orascom Telecom,  Weather Investments

Countries:

Algeria

Tags:

Shareholders & subsidiaries, Wholesale, Government policy, Legislation - Lawsuits, M&A buyouts & divestments

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