DLA Piper (www.DLAPiper.com) has obtained a significant win for the Republic of Guinea in its multi-billion euro investment arbitration against BSGR. The arbitration concerned development rights over the world’s largest iron deposit, Simandou.
In a landmark award issued on 18 May 2022, the ICSID tribunal rejected BSGR's claims in their entirety. BSGR, whose ultimate beneficiary is Israeli diamond billionaire Beny Steinmetz, had argued that the State had expropriated its mining rights in Simandou and the adjacent Zogota deposit. The tribunal fully adopted the Republic of Guinea's position that BSGR had acquired its rights through an extensive bribery scheme implemented primarily between 2006 and 2010. The tribunal was convinced by the overwhelming evidence gathered by the Republic of Guinea, including contracts of corruption, evidence of payments of millions of dollars to various intermediaries, as well as audio and video recordings of key individuals, all taking place over several continents.
Prior to the arbitration, DLA Piper led the investigation into BSGR’s acquisition of its contested rights. The investigation involved unprecedented cooperation between Guinean, Swiss, American, Israeli and other criminal authorities.
The DLA Piper team was led by Global Co-Chair of International Arbitration, Michael Ostrove, and supported by partner Théobald Naud, Senior Consultant Scott Horton and Senior Associate Clémentine Emery. Former associates Sârra-Tilila Bounfour and Andrea Lapunzina were also key team members.
Michael Ostrove at DLA Piper, commenting on the success, said:
“This award is a major victory not only for the Republic of Guinea but for all of Africa. It proves that a determined State can prevail against powerful multinational businesses in the fight against corruption. The successful outcome also demonstrates once again DLA Piper’s strength in dealing with complex international arbitration matters along with its deep understanding of and commitment to the African market. We could accomplish this result only because of our ability to work closely with devoted colleagues in Guinea in addition to our international arbitration colleagues around the world. We are delighted that the State achieved such a resounding result.”
Distributed by APO Group on behalf of DLA Piper.
Contact:
Peter Otero
PR Manager
DLA Piper
tel 0207 153 7617
email: peter.otero@dlapiper.com
About DLA Piper:
DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa and Asia Pacific, positioning us to help clients with their legal needs around the world. In certain jurisdictions, this information may be considered attorney advertising. DLAPiper.com
Source: Apo-Opa
Did you find this information helpful? If you did, consider donating.