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Telekom Malaysia Berhad (“TM”) wishes to inform the Exchange on the developments pertaining to the arbitration proceeding instituted by TM against the Government of the Republic of Ghana (“GoG”) in respect of TM’s investments in Ghana Telecommunications Company Limited (“Ghana Telecom”).
As disclosed earlier, TM had on 10 February 2003 issued a Notice of Arbitration to the GoG for the commencement of arbitration proceedings under the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules in accordance with the Bilateral Investment Treaty between the Government of Malaysia and the GoG (“the BIT”).
The subsequent developments are as follows :-
(1) At the Preparatory Meeting on 17 July 2003, held at The Hague, TM, the GoG and the Arbitral Tribunal agreed on the process, organisation and time-frame of the arbitration proceeding.
(2) On 21 October 2003, TM filed the Statement of Claim with the Permanent Court of Arbitration at The Hague. TM seeks the following compensation from the GoG:-
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a) US$103,100,000 representing the fair market value of TM’s shareholding in Ghana Telecom as at 3 December 2002;
b) US$54,125,000, representing a deposit paid to the GoG in the year 2000 for the proposed acquisition of an additional 15% equity interest in Ghana Telecom (deposit of US$50,000,000 plus interest);
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c) US$9,739,992.62, being consultancy fees due to TM International Sdn. Bhd., a wholly owned subsidiary of TM for consultancy and management services rendered to Ghana Telecom; and
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d) Additional interest in respect of items (a), (b) and (c) and legal and other related expenses.
(3) The members of the Arbitral Tribunal which was constituted under the UNCITRAL Arbitration Rules in accordance with the provisions of the BIT comprise the following:-
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a) Professor Albert Jan van den Berg (Chairman);
b) Professor Emmanuel Gaillard, appointed by TM; and
c) Mr Robert Layton, appointed at the GoG’s request.
(4) In accordance with the timing agreed at the Preparatory Meeting, the GoG is expected to file their Statement of Defence latest by 9 January 2004. The arbitration is expected to commence for two (2) weeks from 5 to 16 July 2004. TM will announce further developments on the arbitration proceedings as appropriate.