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Kuwaiti logistics company Agility said the International Court of Arbitration of the International Chamber of Commerce (ICC) has awarded damages of $1.65 billion in an arbitration case between its subsidiary Iraq Telecom Ltd. (IT) and its affiliate, International Holdings Limited (TH), and Korek Telecom Limited and Sirwan Saber Mustafa Barzani.
The case relates to allegations of fraud and corruption by Korek Telecom Co. and its controlling shareholder, Sirwan Saber Mustafa Barzani, with a view to unlawfully causing the expropriation of IT’s and IH’s $810 million investment in Korek Telecom, Agility, which has been doing business in Iraq for over 20 years, said in a statement on Tuesday.
The ICC said that Korek and Barzani are jointly and severally liable for the award, which is final and binding.
Tarek Sultan, Agility’s Vice Chairman commented: "We hope that this outcome brings resolution and closure to the issue and that the respondents will now honor their obligations in a manner commensurate with that of businesses operating in countries that respect the rule of law.”
Meanwhile, in a statement sent via their communications consultancy Hawthorn Advisors, Korek said they are disappointed by these findings.
"Mr Barzani and Korek firmly deny the allegations against them and are considering all options, including whether to seek to set aside the Award.
"This is not the end of the matter, and the company vigorously rejects any allegation that it set out to deceive IT (the joint venture formed by Agility and Orange).”
(Reporting by Brinda Darasha; editing by Seban Scaria)
