The Ministry of Justice of Kazakhstan has won a lawsuit to recover 5.9 billion tenge (nearly $13 million) paid to the Turkish company F&A Road Construction. The ministry reported that the advance payment was made as part of a contract for the reconstruction of the Kurty–Burylbaytal highway, Kursiv.kz reports.
According to the report, the contract was signed in October 2021 by the Committee of Highways (CoH) under Kazakhstan's Ministry of Transport. The funds were transferred to the contractor for mobilizing equipment and preparing materials, but the company did not begin work. In May 2022, due to the failure to fulfill obligations, the contract was terminated.
"Attempts by the CoH to recover the advance payment through peaceful means were unsuccessful. Under the Government’s directive, the Ministry of Justice of Kazakhstan initiated arbitration against the contractor and took active measures to recover the funds. In April 2024, together with the law firm White & Case LLP, a claim was filed with the Arbitration Court of the International Chamber of Commerce in Paris," the statement said.
The Ministry of Justice added that in June 2024, the contractor proposed a settlement agreement, under which it agreed to return the advance payment and cover the ministry’s legal costs.
The legal fees amounted to $280,000 for services and $85,000 for arbitration fees. The funds are expected to be returned by September 26, 2024.
Earlier, a Georgian company won 1.5 billion tenge from a Kazakh oil terminal. The legal dispute between the state enterprise GJD and the Batumi Oil Terminal (BOT) began in 2005—three years before KazTransOil JSC (a subsidiary of the national company KazMunayGas) bought 100% of the terminal. GJD's claim sought 13.9 million lari (1.39 billion tenge) from BOT.
CentralasianLIGHT.org
September 23, 2024