BVI court’s asset freezing order: AGP says govt will protect national assets ‘wherever they may be’

ISLAMABAD: Reacting to the ex-parte order of the British Virgin Islands court to attach Pakistani institutions assets abroad, Attorney General for Pakistan (AGP) on Thursday said the federal government will protect its national assets, “wherever they may be.”

AGP Khalid Jawed Khan told Business Recorder that when an aggrieved party approaches courts, the courts usually grant temporary relief, which the High Court of Justice of the British Virgin Islands did by passing an ex-parte order regarding attachment of the Pakistan assets abroad.

The AGP has confirmed the decision of the HC Virgin Islands.

However, a statement issued by AGP’s Office said: “It is reiterated that the government of Pakistan shall vigorously pursue proceedings initiated by TCC in any jurisdiction and the government has reaffirms commitment to protecting national assets, wherever they may be located.”

Tethyan Cooper Company (TCC) on November 20, 2020, had filed a case in the High Court for attachment of the assets belonging to the Pakistan International Airlines Investment Ltd, a company which is also incorporated in the British Virgin Islands.

The TCC, a joint venture between Chile’s Antofagasta Plc and Canada’s Barrick Gold, the Chilean miner, in 2012 had filed a case against Pakistan in International Center for Settlement of Investment Disputes (ICSID), which on 12th July 2019 rendered an Award of $5.976 billion, which include $4.08 billion penalty and $1.87 billion in interest. Pakistani government; therefore, has to pay this amount to the TCC. The AGP’s Office said; “The federal government is vigorously contesting these proceedings with all the legal resources available to it. The government of Pakistan is, however, also engaged to settle the matter amicably.”

Pakistan had appealed the penalty imposed by the International Centre for Settlement of Investment Disputes (ICSID) on several grounds.

The tribunal is still considering Pakistan’s appeal against the penalty over its decision to cancel the Reko Diq mining lease for the TCC, and a final hearing will take place in May 2021.

A former additional attorney general, on condition of anonymity, stated that the Reko Diq case is very important for the economic stability of the country because if Pakistan loses this case then it will have serious implications for Pakistan’s economy and its assets abroad could be attached.

The ICSID on September 17 issued a 70-page order in which it was stated that the stay of enforcement of $6 billion award — the same forum rendered on July 12, 2019 — shall be continued on a conditional basis.

The order said Pakistan shall provide an “unconditional and irrevocable” bank guarantee or the LC for 25 per cent of the award, plus accrued interest as of the date of the decision.

The guarantee or the LC was to come from a reputable international bank based outside of Pakistan, which was pledged in favour of the claimant — TCC — and to be released on the order of the ICSID.

The ICSID also held that if Pakistan could not furnish the security and undertaking in terms as set out within 30 days after notification of the decision, the stay of enforcement in the amount of 50 per cent of the award, plus accrued interest as of the date of the decision would be lifted.

However, Pakistan missed the deadline and did not deposit 25 per cent bank guarantee.

NNI adds: A foreign company Tethyan Copper has started the process of freezing Pakistani assets in Reko Diq case. Responding to the move, the Attorney General’s Office said the order was given without listening to Pakistan and all resources will be used to defend the country’s interest.

Progress has been made in the Reko Diq case. Tethyan Copper Company has started the process of freezing Pakistani assets.

The British Virgin Islands High Court has issued a restraining order on the application of Tethyan Copper Company to freeze Pakistan’s assets. The restraining order was issued on December 16, 2020.

Copyright Business Recorder, 2020