Identifier
Created
Classification
Origin
05KINSHASA819
2005-05-19 07:43:00
UNCLASSIFIED
Embassy Kinshasa
Cable title:  

CONGO/B: 2005 REPORT ON INVESTMENT DISPUTES

Tags:  CASC EFIN EINV KIDE PGOV CF OPIC 
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UNCLAS KINSHASA 000819 

SIPDIS

DEPT FOR EB/IFD/OIA/JPROSELI, L/CID/JNICOL AND AF/C

FROM BRAZZAVILLE EMBASSY OFFICE

E.O.12958: N/A
TAGS: CASC EFIN EINV KIDE PGOV CF OPIC
SUBJECT: CONGO/B: 2005 REPORT ON INVESTMENT DISPUTES
AND EXPROPRIATION CLAIMS

REF: A) STATE 070014; B) Kinshasa 0769 C) State 61595;

D) Ashraf-to-Sanders March-April 2005 emails;
E) Indyke-to-Bargeron/Winstead email of February 2005

UNCLAS KINSHASA 000819

SIPDIS

DEPT FOR EB/IFD/OIA/JPROSELI, L/CID/JNICOL AND AF/C

FROM BRAZZAVILLE EMBASSY OFFICE

E.O.12958: N/A
TAGS: CASC EFIN EINV KIDE PGOV CF OPIC
SUBJECT: CONGO/B: 2005 REPORT ON INVESTMENT DISPUTES
AND EXPROPRIATION CLAIMS

REF: A) STATE 070014; B) Kinshasa 0769 C) State 61595;

D) Ashraf-to-Sanders March-April 2005 emails;
E) Indyke-to-Bargeron/Winstead email of February 2005


1. In reply to Reftel A, Embassy Brazzaville reports
the following investment disputes in Republic of Congo
(Congo/B).


2. Claimant A
Year When Dispute Arose: As early as 1999
Case History: Claimant purchased Congolese debt on
secondary market and claims that Congo has defaulted on
the debt. Claimant filed suit and won in U.S. court,
seeking direct allocation of revenue to itself from a
third party that owes regular and continuing payments
to Congo for oil revenues. Congo appealed the case in
U.S. court and lost in April 2005. The Embassy
delivered a demarche to Congo in March and April 2005,
urging a negotiated settlement with claimant (Refs B
and C). The claim amount is about 16.3 million euros
(US$20.6 million) in principal and interest.


3. Claimant B
Year When Dispute Arose: 2004
Case History: Claimant alleges that Societe National
des Petroles du Congo (SNPC),the state-owned national
oil company of Congo, reneged on a letter of intent to
supply 5 million barrels of crude oil that was signed
by the Congolese Minister of Hydrocarbon in July 1999.
The dispute involves the specified quantity of crude
oil; the dollar amount is unspecified. Claimant
visited Brazzaville (Congo) in February 2005. Meetings
took place between claimant, claimant's Congolese
lawyer, the president of SNPC, and the Minister of
Justice. Before departing, claimant reported that the
claims had been addressed during the meetings and that
the results were satisfactory, but did not specify what
the results were. Prior to the February visit, the
Embassy furnished a list of Brazzaville lawyers to the
claimant through the Department.


4. Claimant A: Af-Cap
Claimant is a U.S. company. The Embassy does not have
a signed privacy act waiver.


5. Claimant B: Frank Weston
President
International Multiracial Shared Cultural Organization
(IMSCO)
Claimant is a U.S. citizen and U.S. resident. The
Embassy does not have a signed privacy act waiver.


6. Brazzaville Embassy Office - Sanders.
DOUGHERTY