The latest development in the arbitration has seen the country failing to comply with English Court Cost Orders only amounting to the modest sum of £110,000, because it has claimed bankruptcy.
A representative from Union Marine’s legal team, Zaiwella & Co Solicitors, told Port Strategy: “It is totally unacceptable for a member of the United Nations to act in this manner.”
“Initially the Government did contend that the Comoros courts were the appropriate forum to decide this dispute, but this contract provided that any dispute between the parties will be resolved by arbitration in London.”
Under International Law, a government is expected to comply with a London arbitration award (especially one rendered by the Former President of the London Maritime Association) and two English Court Orders.
But this case has been rumbling on since 2012 when Union Marine’s contract with the Union of Comoros was terminated by the government, despite it having been guaranteed a period of ten years operation from 2007.
Added to this, Union Marine was not informed of the decision by the Comoros Government and found out independently after it spotted a statement on the Comoros Government’s website which said it had hired a third-party company to “administrate the country’s maritime affairs.”
Zaiwella & Co Solicitors said that the Comoros Government’s failure to pay up will diminish the respectability and creditworthiness of Comoros as a country and a member of the UN and will result in it being branded as a defaulter in respect of financial obligation.