Colombia: Tribunal sentences State to pay Glencore and questions the methodology used to calculate the damage for the punishment set by the Comptroller's Office

Author: Latin American Post, Published on: 30 August 2019

“Despite losing lawsuit, Colombia will only return US $19 million”, 29th August 2019

…Glencore had asked the International Center for Settlement of Investment Disputes of the World Bank to recognize damages after the General Comptroller of Colombia imposed a fine of $ 19.1 million in January 2016. The Comptroller's Office argued that the company incorrectly calculated the royalties that it should have paid for an addition to a contract, revoking the agreement. The control agency later fined Prodeco for not complying with the terms of the contract. "The Arbitral Tribunal only ordered the return of $ 19.1 million, plus interest and rejected all other claims confirming the confidence in the integrity and institutionality of the Comptroller and Colombian judges," said the National Agency of Legal Defense of the State in a statement…"The effectiveness of the State's legal defense strategy reduced the economic claims claimed by Glencore by 97%," he added. In its decision, the court said that the Comptroller's conduct in calculating the damage caused by the contract problems was an unreasonable measure that hurt Glencore and Prodeco's investment in the South American country…Prodeco said in a statement that it was important that the dispute had been resolved and that they hope to continue developing its long-term investments in Colombia…

 

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Related companies: Glencore