Tuesday, November 6, 2018

Gambia Government wins a one year temporary reprieve from paying Carnegie Minerals $23 million

The contract dispute between the Australian mining company Carnegie Minerals and the Government of The Gambia in 2008 that resulted in a judgement in favor of Australian company is back in the news.

The arbitration at the World Bank's International Center for Settlement of Investment Disputes (ICSID) resulted in an award worth $22 million plus interest and arbitration costs. 

According to African Intelligence newsletter, the ICSID has decided to grant the Government of The Gambia a one year reprieve.  Government, represented by the law firm of Mayer Brown, sought to have the judgement annulled via arbitration and has stalled on its payment to Carnegie in the hope that the court will rule in its favor.

The ICSID's three arbitrators, Canadian lawyer Donald M. McCrea, Nigerian Dorothy Udeme Ufot and Spanish national Bernado Cremades, agreed to stay enforcement of the award against the Gambia for a period of one year on the strength of the argument that for the government to pay the $23 million award could further jeopardize the country's fragile economy.