He International Center for Settlement of Investment Disputes (ICSID) of the world Bank ruled against the Uruguayan State in the case Pluna and held him responsible for the bankruptcy of the flag airline, condemning him to pay compensation of between 30 and 80 million dollars.
The ICSID resolved an arbitration initiated after the claim of the Panamanian company Latin American Regional Aviation Company Holding (Larah), who had shares in Pluna and was critical in its resolution with the then government of Jose Mujicain power when the airline closed, local media reported.
The journey of the Pluna case in the World Bank arbitration body, located in New York, began almost five years ago, in May 2019.
He ICSID It reached the amount of between 30 and 80 million dollars in compensation – depending on the source – based on the interest since Pluna closed in 2012. And it imposes a default of 500,000 dollars on the Uruguayan State for each month that it does not pay the sentence.
Larah assured that the Mujica government violated the Reciprocal Investment Protection agreement signed between Uruguay and Panama by expropriating Pluna without paying economic compensation. He requested, in the lawsuit, about 800 million dollars.
However, the study Foley Hoag – who already represented Uruguay in the lawsuits of the tobacco company Philip Morris and the mining company Aratirí, achieved that the figure of the ruling of the ICSID was much smaller.
The opinion ensures that the government of Jose Mujica violated the rights of the Larah company and violated its international obligations through “unfair, inequitable and expropriatory treatment” with its conduct towards Pluna, El País reported.
He ICSID considered that the Frente Amplista government financially suffocated the airline company to avoid taking responsibility for million-dollar lawsuits for the bankruptcy of Varigin Brazilwhich Pluna managed between 1995 and 2000, despite the fact that the Uruguayan State had said that it would be responsible.
Source: Ambito
