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Reko Diq case: British Virgin Islands high court attaches Pakistan’s assets

Norwegian

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Reko Diq case: British Virgin Islands high court attaches Pakistan’s assets
According to the court’s ex parte December 16 order, Pakistan cannot sell these assets

Hasnaat Malik December 24, 2020

photo file

PHOTO: FILE

Pakistan is faced with another setback on the international legal front as the British Virgin Islands high court ruled to attach certain assets belonging to the country’s institutions, sources revealed to The Express Tribune.
Sources informed that the British Virgin Islands high court passed an ex parte order on December 16 regarding the attachment of Pakistani institutions’ assets. In view of that order, Pakistan cannot sell these assets.
For the enforcement of the $6 billion award in the Reko Diq case, Tethyan Copper Company (TCC) has sought attachment of certain assets belonging to Pakistani institutions.

'Govt vigorously contesting matter'
Pursuant to the proceedings for the enforcement of the award before the high court of Justice in British Virgin Islands by TCC, the office of the Attorney General for Pakistan (AGP) has said that the government of Pakistan is vigorously contesting the matter with all legal resources available to it. Likeiwse, the government is also engaged in settling the matter actively.
Without prejudice to such engagement, it is reiterated that the government of Pakistan shall vigorously pursue proceedings initiated by the TCC in any jurisdiction and the government reaffirms its commitment to protecting national assets, wherever they may be located, says the statement issued by the AGP.
The International Center for Settlement of Investment Disputes (ICSID) on September 17 issued a 70-page order in which it was decided that the stay of enforcement of $6 billion award — the same forum rendered on July 12, 2019 — shall be continued on a conditional basis.
The order said Pakistan shall provide an “unconditional and irrevocable” bank guarantee or the LC for 25 per cent of the award, plus accrued interest as of the date of the decision. The guarantee or the LC was to come from a reputable international bank based outside of Pakistan, which was pledged in favour of the claimant — Tethyan Copper Company (TCC) — and to be released on the order of the ICSID.
The ICSID also held that if Pakistan could not furnish the security and undertaking in terms as set out within 30 days after notification of the decision, the stay of enforcement in the amount of 50 per cent of the award, plus accrued interest as of the date of the decision would be lifted. However, Pakistan missed the deadline and did not deposit 25 per cent bank guarantee.
Out of court settlement
Pakistani authorities are hopeful that the country will reach an out of court settlement with the TCC next year. Senior lawyers are of the opinion that the claimant company has no choice but to reach out for an out of court settlement as Pakistan has very limited assets abroad.
The TCC had initially claimed $11.43 billion in damages for the termination of their contract but Pakistan’s incumbent legal team was able to restrain the sum to $4.08 billion.
In 2012, the TCC filed a claim for international arbitration before the ICSID of the World Bank. The litigation carried on for seven years. Former chief justice of Pakistan Iftikhar Chaudhary’s judgment in the Reko Diq case was the first in the previous government’s tenure. The current Pakistan Tehreek-e-Insaf (PTI) led government has already spent $10 million as legal expenditures on this case.
Many senior lawyers have been critical of the former CJP’s judgments which in the ensuing years have caused trouble for policymakers and stirred concerns amid international investors.
A senior official revealed that the “misstatement” of scientist Dr Samar Mubarakmand before the tribunal was one of the main reasons behind the ICSID slapping the heavy penalty on Pakistan.
Dr Samar had claimed that the Reko Diq gold mines would fetch the country around $2.5 billion annually. He had also maintained that Reko Diq and other gold reserves in the country will bring in $131 billion to the national exchequer. The tribunal relied on his statement.
Three different international firms were hired to plead the case before the ICSID. Cherie Blair, the wife of former UK prime minister Tony Blair, was leading Pakistan’s first legal team. Renowned lawyer Ahmar Bilal Sufi was assigned the task of hiring the team.
During the tenure of the Pakistan Muslim League-Nawaz government, then AGP Salman Aslam Butt had hired an international firm, Alen and Avery.
However, Alen and Avery was unable to find evidence of corruption in the contract between Pakistan and the TCC. Later, ex-AGP Ashtar Ausaf Ali engaged an American firm, GST, in the quantum stage. Only $1 million was paid to it. The firm raised 11 arguments of which seven were accepted at the quantum stage.
 

Norwegian

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A senior official revealed that the “misstatement” of scientist Dr Samar Mubarakmand before the tribunal was one of the main reasons behind the ICSID slapping the heavy penalty on Pakistan.
Dr Samar had claimed that the Reko Diq gold mines would fetch the country around $2.5 billion annually. He had also maintained that Reko Diq and other gold reserves in the country will bring in $131 billion to the national exchequer. The tribunal relied on his statement.
How accurate is this news?

@Horus @waz @Indus Pakistan @koolio @Path-Finder @Imran Khan @ghazi52 @Patriot forever @ziaulislam @Morpheus @Pakistansdefender
 

Jazzbot

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Dr Samar had claimed that the Reko Diq gold mines would fetch the country around $2.5 billion annually. He had also maintained that Reko Diq and other gold reserves in the country will bring in $131 billion to the national exchequer. The tribunal relied on his statement.

What exactly is the worth of these gold assets in Reko Diq?
 

maithil

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Probably trying to use this as a precedent in courts of countries where Pakistan actually has assets. The company surely knows the kind of assets Pakistan has in Virgin Islands.
 

Imran Khan

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scrap the BITS NOWWWWWWWWWWWWWWWWWWWWWWW

@Norwegian this is real mess

Probably trying to use this as a precedent in courts of countries where Pakistan actually has assets. The company surely knows the kind of assets Pakistan has in Virgin Islands.
may be Pakistani gov have deposits of Forex reserves there :D
they are upto two hotels

the rosevelet and scribe belongs to PIA

PIA Investments Limited (PIAIL) was incorporated on September 10, 1977 in Sharjah, United Arab Emirates as a limited liability company under a decree issued by H.R.H. Prince Faisal Bin Khalid Bin Abdul Aziz 'The Ruler of Sharjah' and is currently registered in British Virgin Islands. The principal activities are to carry business as promoters of and investors in projects related to construction, development and operation of hotels, motels and restaurants throughout the world. The Holding company's controlling interest in PIAIL is 99%
 
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Itachi

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Reko Diq case: British Virgin Islands high court attaches Pakistan’s assets
According to the court’s ex parte December 16 order, Pakistan cannot sell these assets

Hasnaat Malik December 24, 2020

photo file

PHOTO: FILE

Pakistan is faced with another setback on the international legal front as the British Virgin Islands high court ruled to attach certain assets belonging to the country’s institutions, sources revealed to The Express Tribune.
Sources informed that the British Virgin Islands high court passed an ex parte order on December 16 regarding the attachment of Pakistani institutions’ assets. In view of that order, Pakistan cannot sell these assets.
For the enforcement of the $6 billion award in the Reko Diq case, Tethyan Copper Company (TCC) has sought attachment of certain assets belonging to Pakistani institutions.

'Govt vigorously contesting matter'
Pursuant to the proceedings for the enforcement of the award before the high court of Justice in British Virgin Islands by TCC, the office of the Attorney General for Pakistan (AGP) has said that the government of Pakistan is vigorously contesting the matter with all legal resources available to it. Likeiwse, the government is also engaged in settling the matter actively.
Without prejudice to such engagement, it is reiterated that the government of Pakistan shall vigorously pursue proceedings initiated by the TCC in any jurisdiction and the government reaffirms its commitment to protecting national assets, wherever they may be located, says the statement issued by the AGP.
The International Center for Settlement of Investment Disputes (ICSID) on September 17 issued a 70-page order in which it was decided that the stay of enforcement of $6 billion award — the same forum rendered on July 12, 2019 — shall be continued on a conditional basis.
The order said Pakistan shall provide an “unconditional and irrevocable” bank guarantee or the LC for 25 per cent of the award, plus accrued interest as of the date of the decision. The guarantee or the LC was to come from a reputable international bank based outside of Pakistan, which was pledged in favour of the claimant — Tethyan Copper Company (TCC) — and to be released on the order of the ICSID.
The ICSID also held that if Pakistan could not furnish the security and undertaking in terms as set out within 30 days after notification of the decision, the stay of enforcement in the amount of 50 per cent of the award, plus accrued interest as of the date of the decision would be lifted. However, Pakistan missed the deadline and did not deposit 25 per cent bank guarantee.
Out of court settlement
Pakistani authorities are hopeful that the country will reach an out of court settlement with the TCC next year. Senior lawyers are of the opinion that the claimant company has no choice but to reach out for an out of court settlement as Pakistan has very limited assets abroad.
The TCC had initially claimed $11.43 billion in damages for the termination of their contract but Pakistan’s incumbent legal team was able to restrain the sum to $4.08 billion.
In 2012, the TCC filed a claim for international arbitration before the ICSID of the World Bank. The litigation carried on for seven years. Former chief justice of Pakistan Iftikhar Chaudhary’s judgment in the Reko Diq case was the first in the previous government’s tenure. The current Pakistan Tehreek-e-Insaf (PTI) led government has already spent $10 million as legal expenditures on this case.
Many senior lawyers have been critical of the former CJP’s judgments which in the ensuing years have caused trouble for policymakers and stirred concerns amid international investors.
A senior official revealed that the “misstatement” of scientist Dr Samar Mubarakmand before the tribunal was one of the main reasons behind the ICSID slapping the heavy penalty on Pakistan.
Dr Samar had claimed that the Reko Diq gold mines would fetch the country around $2.5 billion annually. He had also maintained that Reko Diq and other gold reserves in the country will bring in $131 billion to the national exchequer. The tribunal relied on his statement.
Three different international firms were hired to plead the case before the ICSID. Cherie Blair, the wife of former UK prime minister Tony Blair, was leading Pakistan’s first legal team. Renowned lawyer Ahmar Bilal Sufi was assigned the task of hiring the team.
During the tenure of the Pakistan Muslim League-Nawaz government, then AGP Salman Aslam Butt had hired an international firm, Alen and Avery.
However, Alen and Avery was unable to find evidence of corruption in the contract between Pakistan and the TCC. Later, ex-AGP Ashtar Ausaf Ali engaged an American firm, GST, in the quantum stage. Only $1 million was paid to it. The firm raised 11 arguments of which seven were accepted at the quantum stage.

They're playing the classic card of delaying the case.....more the delay......more time wasted. More time wasted = less time spent exploiting the resources buried under the ground. :rolleyes:
 

Rajputana_

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Accurate but we donr have much assest in small remote virgin island
Its more a political stent by the company

Enforcing this will be used next to impossible

We didnt submit any colateral so thats good
We d
Incorrect. BVI is attaching international pakistani assets.

ICSID approved it, some dumb guy called mubaraqmamd caused it, trying apparently to save pakistani tax evaders.

Pakistan government will be held responsible.

No two ways about it.
 

PakPrinciples

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How accurate is this news?
What exactly is the worth of these gold assets in Reko Diq?
if we dig them out and shamefully we as a country can not .
Gold price is currently about $1880 USD per ounce while Copper is priced at about $3.55 per pound.

According to SMEC the inferred resource of gold is about 20.9 Million ounces that would it's worth at about $39 Billion USD. The inferred copper deposit is about 12.3 Million Tons putting its worth at about $87 Billion USD.
https://www.smec.com/what-we-do/projects/reko-diq-mine

Inferred and indicated resources aren't necessarily economically recoverable so it doesn't mean you'd get all of that wealth but suffice it to say these deposits are significant.

The copper itself can be turned into value added products like copper wiring while the gold can be turned into jewelry which would earn Pakistan significantly more foreign exchange.

Tethyan Copper Corp was attempting to rob Pakistan.

Their original plan, and I wrote about this on posts years back with evidence directly from their website, was to mine the ore and then pipe the slurry via our ports out of the country to refine the copper elsewhere and turn it into value added products outside the country.

This deal was synonymous with the absolute stupidity and corruption of the Musharraf dictatorship since the deal with signed back in 2006.
https://www.barrick.com/news/news-d...ofagasta-for-Gold-Copper-Project/default.aspx

I've said this before but Musharraf is the source of almost all of our current economic woes. The mistake Zardari and Nawaz Sharif made is that they didn't do anything different, the same neo-liberal economic nonsense in fact they just made things even worse.

This $5 Billion award is absolutely ridiculous, TCC invested nothing. Others have criticized this award calling it blatantly unfair and stupid.
 
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Skull and Bones

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I have significant part of my portfolio invested in Barrick Gold, if they can get back that 5 billion dollars from Pakistan, all investors will be inline for a one time special dividend.
 

313ghazi

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Accurate but we donr have much assest in small remote virgin island
Its more a political stent by the company

Enforcing this will be used next to impossible

We didnt submit any colateral so thats good
We d
On the contrary I think every corrupt elite of Pakistan will be concerned. British Virgin Islands is like the Walmart of dirty money.
 

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