October 23, 2001	Tuesday	Shaba'an 5, 1422

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ISLAMABAD, Oct 22: The Swiss company, Societe Generale de Surveilance (SGS), has approached the International Centre for Settlement of Investment Disputes (ICSID), a forum set up under UN Convention, to help it get compensation from the Pakistan government for the termination of a pre-shipment inspection contract.

In its letter to Foreign Minister Abdul Sattar, the company has informed the government that a claim has been filed.

The company stated that Pakistan and Switzerland had signed an agreement on May 6,1996, for the promotion of reciprocal protection of investment.

A number of disputes,it stated, had arisen in connection with investment by SGS in pre-shipment contract due to Pakistan’s non-payment of invoices submitted by SGS.

“ Pakistan’s acts and omissions in this connection constitute a violation of number of obligations owed to SGS pursuant to the Swiss-Pakistan agreement as well as the breaches of the SGS-Pakistan agreement”, it said.

Soon after the Supreme Court set aside the judgment convicting Benazir Bhutto and Asif Ali Zardari on the charge of getting commission from SGS, the company had filed a counter-claim against the government of Pakistan, demanding US$ 329 million as damages on account of premature termination of the pre-shipment inspection contract and damage to its reputation.

In case ICSID invokes its jurisdiction, the Swiss company would not press its claim in Pakistani court.

SGS claims that no payment was made to any official for the award of the PSI contract.”The award of contract was fair, transparent and based on a competitive process of bidding and at no stage had it indulged in any corrupt or unethical practices in order to procure the award of the contract.”

It was stated that the mode and manner in which investigation was carried out after the removal of PPP government, suggested the existence of a conspiracy to target a political opponent.

The Swiss company, SGS, stated that the wrongful repudiation of contract by the government of Pakistan and its subsequent false and politically motivated accusations had caused a colossal monetary loss and damage to the reputation of the company.

It demands US$329 million in the form of outstanding invoices; interest on the unpaid invoices; damages on account of premature termination of the contract; demobilisation cost; damage to the reputation of the company as a direct result of the defamatory statements of the government of Pakistan; damages on account of loss of opportunity;and legal fees and expenses.

The government of Pakistan is of the view that SGS was awarded the contract by the government of Pakistan in consideration of 6 per cent paid to an offshore company operated by Jens Schlegelmilch, owner of which is Asif Ali Zardari.

The government had stated that investigations revealed that the respondent had paid bribes and commissions to the beneficiaries out of the fees received from the government of Pakistan.