2007 REPORT ON INVESTMENT DISPUTES - RWANDA

UNCLAS KIGALI 000680 SIPDIS DEPARTMENT FOR AF/C DEPARTMENT FOR EB/IFD/OIA DEPARTMENT FOR L/CID DEPT OF COMMERCE WASHDC SIPDIS E.O. 12958: N/A TAGS: EINV KIDE OPIC PGOV CACS RW SUBJECT: 2007 REPORT ON INVESTMENT DISPUTES - RWANDA REF: STATE 55422 ¶1. SUMMARY. In accordance with reftel, the following updates the single existing investment dispute involving an American investor in Rwanda. END SUMMARY. ¶2. The United States Government is aware of one (1) claim of a United States person that is outstanding against the Government of Rwanda (GOR). a. Claimant A b. Year the dispute arose: 2002 c. Case History: Claimant A is in dispute with the GOR involving a fish farming project/investment in Rwanda. Claimant A was in business from April 1996 until December 2002 at the Kigembe Fish Farm, when persistent disagreements with the Government of Rwanda (GOR) over financing and payment arrangements led to an end to formal company operations. Since 2002, the director of the company has been in negotiations with the GOR for payment of operational and income loss from his investment, an amount he now claims totals $15 million. Non-binding arbitration was sought by the GOR, but Claimant A, after an attempt to seek an out-of-court settlement from the GOR for an undetermined amount failed, took the case to court on July 18, 2006. On August 1, 2006 Judge Karugarama heard the case, but was appointed to Minister of Justice on August 4 before rendering a decision. The court scheduled a new court date for January 15, 2007. When the court finally convened on March 26, 2007, the High Court ruled that it is "not competent to hear the case" and that the case must restart in a lower court or appeal to the Supreme Court. The claimant filed an appeal with the Supreme Court and is supposed to receive a verdict on August 7, 2007. On July 24, 2007 the Minister of Finance agreed to the Embassy to assemble a cross-ministerial team to meet with the claimant in hopes of reaching an out-of-court settlement. This will be done in parallel with the judicial proceedings and is an attempt to resolve the matter once and for all. MANSFIELD