Just when you thought the government couldn’t withstand another international legal challenge, there are credible reports tonight which tell us that it has been ruled against by an international arbitrator.
In 2005, a company called Newco, which is affiliated with the airline Lufthansa sued the government for US$33 million, claiming that the then Musa administration failed to honour a commitment to grant them a 20 year license for the private management of the airport. That was when the airport was being privatized and the deal ended up going to a local consortium.
Well word reaching 7NEWS tonight is that the international arbitrators have ruled in Newco’s favour, but not to the tune of US$33 million. Government, we are told must pay US$2.6 million to Newco. We were unable to reach any government re3presentative for comment, but will have more tomorrow.
