Orascom Telecom Holding (OTH) (ORTE.CA) says it will be completing procedures necessary to submit a formal notice of arbitration against the People’s Democratic Republic of Algeria within the coming two months in respect of the unlawful actions taken since 2008 by the Algerian government against Orascom Telecom Algerie (OTA) – Djezzy.
In the Notice of Arbitration, OTH asserts that since 2008 its rights under the Agreement on the Promotion and Reciprocal Protection of Investments between Egypt and Algeria have been violated by actions taken by the Algerian government against OTA, including the recent court judgment against OTA and a member of its senior executive team imposing a total fine of 99 billion Algerian Dinar (approximately USD 1.3 billion) and a criminal sentence against a member of OTA’s senior executive team.
This international investment treaty claim is brought under the arbitration rules of the United Nations Commission on International Trade Law. OTH is fully confident in the strength of its claim.
An official source sees that these procedures shall be completed within the coming two months so that OTH would submit the notice of arbitration to amid the Algerian government’s arrogance.
Last April 12th, Orascom Telecom has informed the Algerian authorities that it would take Algeria to international arbitration.
This comes after the negotiations between OTH and the Algerian authorities failed to find any amicable resolution for the two parties.
“Resorting to international arbitration is the most suitable step so as to find an amicable resolution for the current dispute between Orascom Telecom and the Algerian authorities. The OTH official source added
“OTH has lodged an appeal regarding the Algerian court’s unfair verdict against Djezzy CEO.”
Djezzy has been the subject of a long-running dispute with the Algerian government, during which the firm has been hit by back-tax demands, threatened with nationalization, and put under criminal investigation.
“Orascom Telecom Holding BOD and France Telecom are backing Djezzy staff against Algeria’s arbitrary procedures of nationalizing the firm or attempts of seizing controlling stakes.”
