Saudi Investor Appeals to Arab League Secretary-General after Arabian Investment Court Rejects his Case against Tunisian Government

Jeddah, Saudi Arabia - Sunday, March 30th 2014 [ME NewsWire]

Saudi investor Adel Bin Saleh Almaddah, President of Tanmiah for Management and Marketing Consultants, appealed to Arab League Secretary General Nabil Elaraby, of the to do him justice and acknowledge his right to compensation, following the unjust ruling rendered by the Arabian Investment Court to dismiss his claim against the Tunisian Government.

The Case will be 1st of April in the Arabian Investment Court – Arab League – Al Maady- Cairo

The Arabian Investment Court had looked into the petitions submitted by Saudi-based Tanmia for Management and Marketing Consultants over its dispute with the Tunisian government on 12/10/2004. The petition calls upon the Court to reconsider its judgment, with respect to the contract signed between the two parties, which grants Tanmia broadcasting rights of Mediterranean Games “Tunisia 2001” and all related activities. The contract, which was unilaterally terminated by the Tunisian government, caused Tanmiah a loss of over $79 million.

Commenting on the subject, Adel Bin Saleh Almaddah, President of Tanmiah for Management and Marketing Consultants said that the case has been dragging since Tanmiah forwarded it to arbitration on 11/3/2000: “The controversy is now 14 years old. How can this be possible? Will it encourage investment, which requires speed and consistency in decision-making?”

Almaddah added that cross Arab investment will only grow and expand based on Arab laws and mechanisms that safeguard capitals and provide them with the ability to work within the framework of a commercial, economic and political stability.

The case started when Tanmiah entered into contract with the Tunisian Government in 1999 to sublet the broadcast rights of Mediterranean  Games 'Tunisia 2001' and all related activities.

Late August 1999, Tanmiah discovered that four months prior to signing the contract with them (Tanmiah), the Tunisian Government had signed a similar contract with Tunis Air, despite the fact that the preamble of the Tanmiah -Tunisian Government contract clearly states that “the Tunisian Government has not entered into contract of similar nature with any other party”.

Tanmiah tried its best to solve the issue amicably and on September 15th 1999, a minute was drafted between both parties, where the Tunisian Government confessed to violating the contract and adhered to rectifying the situation by removing all violations. In spite of this, the Tunisian Government did not take necessary steps to resolve the issue.

Furthermore, Tanmiah tried to resolve the issue through the mediation of Dr. Ahmed Al Salim – then the Secretary General of Arabian Ministers of Interior Council (He currently holds the post of Undersecretary of Ministry of Interior) and of HE The Saudi Ambassador to Tunisia. Despite Tanmiah offering several practical solutions for the problem, Tunisia government did not respond to any efforts made.

Despite their confessions of violating the contract in the aforesaid minutes and Tanmiah’s notice which urged them to adhere to the terms and conditions of the signed contract, the Tunisian Party claimed that Tanmiah did not adhere to the contract and unilaterally terminated the contract signed with Tanmiah without legal justification contrary to the arbitration term (chapter XIV of the contract).

Furthermore, on the request of the Tunisian Minister of Foreign Affairs, the Tunisian party requested the mediation of the Saudi Ambassador to Tunis to force Tanmiah to pay its pledges under the contact.

Tanmiah held a meeting with the Tunisian Prime Minister in the presence of the Saudi Ambassador to resolve the problem, yet failed to get a positive response from the Tunisian Party.

Subsequently, Tanmiah forwarded the case to arbitration, as per the contract provisions on 11/03/2000, 14 years ago. The Arbitration Committee held its session on 8/12/2000, (after approximately 15 months from the date when the minutes were signed on September 15th, 1999). The Tunisian party cancelled the arbitration ruling through an order issued by the Tunisian Court of Appeal, despite the refusal of the Court of First Instance, chaired by Justice Mokhtar Yahyaoui to cancel the ruling. Justice Mokhtar Yahyaoui requested the former President to not interfere with the law, and was subsequently imprisoned and removed from office because of this ruling.

Hence, on 14/01/2003, Tanmiah lodged a claim at the Arabian Investment Court of the Arab League and demanded the Tunisian Government to fully compensate its financial losses resulting from termination of contract which amounted to a sum of $ 79,058,170 (US Dollars Seventy nine million fifty eight thousand one hundred seventy).

The Arab Investment Court issued its judgment and rejected the case with a majority ruling of two judges on 12/10/2004. Despite the fact that the court sits in panel of six judges, only three attended; while the Unified Agreement stipulates that the Court shall be composed of at least five judges. However, the President of the Court, whose opinion was contrary to the majority ruling said: “Whereas either party did not lodge a claim within the validity period of the contract, urging the other party who adjourned the execution, and did not get a termination judgment, then the contract shall remain valid and enforceable, based on facts should the contract had been executed as stipulated by Arab legislations, and pursuant to chapter (273) of the Tunisian Code of Obligations and Contracts, which states that (... the termination of the contract should be done through a court order). Therefore, and contrary to the majority’s ruling, I urge the court to select a number of expert and professionals to carry out a justified assessment of the losses incurred by either party as a result of violation of the contract’s provisions. And in light of these experts’ assessment and acceptance, the judge shall rule an appropriate judgment.”

Almaddah stressed that such statement from the President of the Court asserts Tanmiah’s right to be compensated as claimed; a compensation that amounts to nearly $ 100 million. Based on such a statement, we have filed for a motion for appeal that the court is now reconsidering.

In conclusion, Almaddah said: “The aforementioned facts clearly demonstrate the extent of injustice suffered by investors. Is this an acceptable course of action? What will become of investments in such a situation?”

Contacts

Feras ALMADDAH

Mobile: 966560690606

+966 12 6688811

fmaddah@headlineme.com









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