(a) Hydro S.r.l, and Costruzioni S.r.l ("Costruzioni"), two companies incorporated in Italy (collectively, the "Corporate Claimants"); and
(b) Francesco Becchetti, Mauro De Renzis, Stefania Grigolon and Liliana Condomitti (collectively, the "Individual Claimants"), each of whom has either a direct, or indirect, ownership interest in one or both of the Corporate Claimants.
(a) the launch of tax audit proceedings against the Claimants' Albanian Entities as a pretext for not issuing value added tax ("VAT") refunds to those companies, which the Claimants say they are entitled to under certain tax concession agreements;
(b) the grant of preferential treatment to other Albanian companies offering a similar service as the Albanian Entities;
(c) the launch of money laundering investigations into both the Albanian Entities and the Individual Claimants;
(d) the seizure and sequestration of the bank accounts and assets of the Albanian Entities, in an effort to make the operation of the Albanian Entities virtually impossible; and
(e) the issue of arrest warrants against Mr Becchetti, Mr De Renzis and Ms Erjona Troplini.
(a) suspend the criminal proceedings identified as Criminal Proceeding No. 1564 and any other criminal proceedings directly related to the present arbitration until this arbitration is completed and consequently withdraw its Requests for Extradition submitted to the Home Office of the United Kingdom dated 21 July 2015, as well as the arrest warrants for Mr Becchetti, Mr De Renzis, and Ms Troplini;
(b) withdraw the orders of execution issued by the Tirana Prosecutor's Office on 8 June 2015 to sequester the assets of each of the Claimants' Albanian Companies and freeze these companies' bank accounts in Albania;
(c) suspend or refrain from bringing any actions against the Claimants or their investments to establish or collect on any alleged tax, customs, or other liability to the Respondent disputed in this arbitration until this arbitration is completed;
(d) refrain from initiating any other proceedings, criminal or otherwise, directly or indirectly related to the present arbitration or engaging in any other course of action that may aggravate the dispute, jeopardize the procedural integrity of this arbitration, and/or violate the Respondent's obligation to respect the exclusive resolution of its dispute with the Claimants in this forum; and
(e) pay to the Claimants the full costs of the Application.1
(a) reject the Application; and
(b) order the Claimants to pay the Respondent's costs of and incidental to responding to the Application in a sum to be assessed or agreed.2
|Dr Michael Pryles AO PBM - President Dr Charles Poncet MCL - Arbitrator Mr Ian Glick QC - Arbitrator||Dr Albert Dinelli - Assistant to the Tribunal Mr Francisco Abriani - Secretary to the Tribunal|
|Dr Philippe Pinsolle Dr Tai-Heng Cheng Mr Alexander Leventhal Mr Marco Garofalo Quinn Emmanuel Urquhart & Sullivan||Mr David Breslin Ms Karen O'Connell Ms Jameela Sastre Ms Emily Airton Gowling WLG (UK) LLP|
|Mr David W Rivkin||Mr Siddharth Dhar|
|Mr Christopher Tahbaz||Mr Peter Webster|
|Ms Ina Popova Debevoise & Plimpton LLP||Essex Court Chambers|
|Ms Alma Hicka|
|Mr Alexandre de Fontmichel||Ms Brunilda Lilo|
|Scemla Loizon Veverka & de Fontmichel||State Advocates, Republic of Albania|
|Mr Karel Daele Mischon de Reya LLP|
|Mr Francesco Becchetti|
(a) violate the Claimants' right to non-aggravation of the dispute;
(b) violate Claimants' right to procedural integrity of this arbitration; and
(c) breach the Respondent's consent to settle this dispute through arbitration exclusively.
(a) money laundering, namely that the monies used to fund the hydroelectric plant were transferred from abroad indicating that they are the product of illegal criminal activity;33
(b) falsification of documents, namely that Energji had invoiced KGE for works that were never performed;34 and
(c) tax evasion, namely that Mr De Renzis, as administrator of Energji, had failed to pay levies and taxes owing to Albania.35
(a) Energji had on a number of occasions invoiced works to KGE that were never carried out, had overcharged for the services that it did provide, and had inflated the costs of subcontractor invoices that it passed onto KGE;
(b) as a result, KGE declared that it was entitled to a far larger VAT credit from Albania than that to which it was otherwise entitled;
(c) Energji failed to pay its tax obligations in the amount of 770,423,159 Albanian Lek;
(d) a fictitious arbitration occurred between Energji and KGE, which resulted in a €15,000,000 payment to Energji, which was subsequently invested in 400 KV, Cable System, and Costruzioni, and which was later invested in Agonset;
(e) the money invested in Agonset should have been used to satisfy Energji's tax debt to the Respondent;
(f) there was enough information to charge Mr Becchetti, Mr De Renzis, Ms Troplini and Ms Liliana Condomitti with tax evasion, document forgery and money laundering; and
(g) the arrest of Mr Becchetti was justified given the nature of the crimes.41
"[T]he Tribunal may, if it considers that the circumstances so require, recommend any provisional measures which should be taken to preserve the respective rights of either party."
"At any time after the institution of the proceeding, a party may request that provisional measures for the preservation of its rights be recommended by the Tribunal. The request shall specify the rights to be preserved, the measures the recommendation of which is requested, and the circumstances that require such measures."
"This Tribunal feels that a particularly high threshold must be overcome before an ICSID tribunal can indeed recommend provisional measures regarding criminal investigations conducted by a state."62
"[T]he degree of ‘urgency' which is required depends on the circumstances, including the requested provisional measures, and may be satisfied where a party can prove that there is a need to obtain the requested measures at a certain point in the procedure before the issuance of an award."64
"The Tribunal agrees with the Claimants that if measures are intended to protect the procedural integrity of the arbitration, in particular with respect to access to or integrity of the evidence, they are urgent by definition. Indeed the question of whether a Party has the opportunity to present its case or rely on the integrity of specific evidence is essential to (and therefore cannot await) the rendering of an award on the merits."66
"Harm not adequately reparable by an award of damages is likely to result if the measure is not ordered, and such harm substantially outweighs the harm that is likely to result to the party against whom the measure is directed if the measure is granted."
"It is not so essential that provisional measures be necessary to prevent irreparable harm, but that the harm spared by the petitioner by such measures must be significant and that it exceed greatly the damage caused to the party affected thereby."68
(a) suspend the proceedings identified as Criminal Proceeding No. 1564 until the issuance of a Final Award in this proceeding;
(b) take all actions necessary to suspend the extradition proceedings currently pending as Case Numbers 1502751601 (for Mr Becchetti) and 1502752144 (for Mr De Renzis), until the issuance of a Final Award in this proceeding;
(c) lift the seizure and security measures taken against the assets and bank accounts of Energji, KGE, 400 KV, Cable System, and Agonset, and against the Claimants' shareholdings in those companies, until the issuance of a Final Award in this proceeding;
(d) suspend or refrain from bringing any actions against the Claimants or their investments to establish or collect on any alleged tax, customs, or other liability to the Respondent disputed in this arbitration until the issuance of a Final Award in this proceeding, including insolvency proceedings case no. 605 registered on November 11, 2014;
(e) refrain from initiating any other proceedings, criminal or otherwise, directly or indirectly related to the present arbitration, or engaging in any other course of action that may aggravate the dispute, jeopardize the procedural integrity of this arbitration, and/or violate the Respondent's obligation to respect the exclusive resolution of its dispute with the Claimants in this forum;
(f) pay to the Claimants the full costs of the Application; and
(g) provide such other relief as the Tribunal may deem appropriate.
(a) the seized assets and the contents of the frozen bank accounts of Energji, KGE, 400 KV, Cable System, and Agonset; and
(b) the current shareholdings in those companies.
Already registered ?