Libananco is claiming damages for losses incurred due to the government’s seizure of the Uzan Group’s companies, Çukurova Electricity Corporation (ÇEAŞ) and the Kepez Electricity Corporation. These two companies were seized by the Savings Deposit Insurance Fund (TMSF) along with 200 other companies in 2003 after it was found that the Uzan Group’s İmar Bank sold nonexistent Treasury bonds and offered above-market interest rates for dollar deposits -- interest that was never paid. It was further ruled in 2009 that the Uzan Group had engaged in the fraudulent sale of company shares.
Answering questions in Parliament regarding the arbitration claim currently being discussed in the International Center for the Settlement of Investment Disputes (ICSID), Yıldız stated that the government had no outstanding concerns regarding the $10.1 billion arbitration claim by the Greek Cyprus-based Libananco Holdings Co, Ltd.
On the third day of hearings at the tribunal, the ministry’s lawyers as well as the Uzan family’s lawyers were present, with both parties refusing to speak to the press. One of Libabanco’s partners, Ali Cenk Türkkan, was rumored to have joined in on the discussion via video conferencing.
“We have no concerns since we trust and respect the arbitration body and we have always observed that the body has been objective,” Yıldız said. Two similar arbitration claims by two Polish firms connected to the Uzan group regarding the seizure of the ÇEAŞ and the Kepez Electricity Corporation had ended in favor of the government, Yıldız said, expressing confidence that the Libananco case would end the same way. He stated that the government’s view on this topic is that Libananco cannot seek damages because they didn’t hold shares in ÇEAŞ or Kepez before 2003 -- the year that the Energy Ministry seized the two corporations and 200 other companies belonging to the Uzan Group. Libananco is seeking damages totaling $21.5 billion including interest stemming from losses incurred from the seizure of both companies, in both of which it holds a 66 percent share.
The minister stated similar views on Wednesday, espousing his confidence that the tribunal would rule in their favor. The court was to decide late last night whether to view the case “on merit.”
Hakan Uzan, for whom an Interpol red notice, or a notice to extradite the individual, was issued six-and-a-half years ago, was given special permission to travel to Paris for eight days to testify in the tribunal.
