TMG eyes international arbitration in wake of Madinaty ruling

Legal advisor for the Talaat Moustafa Group (TMG) Shawqi al-Sayyid has threatened to seek international legal arbitration in an attempt to blame the Egyptian government for contractual flaws in the agreement it signed with the group to implement the Madinaty housing project.

His threat comes as clients continue to flood the group’s headquarters with inquiries about the remaining viability of the project after the government recently annulled the contract. Madinaty's beneficiaries signed contracts for specific units.

Al-Sayyid told Al-Masry Al-Youm that the International Center for the Settlement of Investment Disputes (ICSID) protects the rights for minority investors in Egypt, based on international agreements. He pointed to similar precedents in which rulings came in favor of stakeholders. Egypt is listed by ICSID among states that do not honor their commitments, al-Sayyid added.

The legal advisor said the investors' lawyers will grant the government a deadline to decide its stance before seeking arbitration. He advised the Egyptian government to revise its contract with the group as soon as possible.

Responding to whether contractors will raise lawsuits against TMG, al-Sayyid said the group did not commit any mistakes in its contract with the Ministry of Housing, adding that it still adheres to the dates it previously set for handing the units over.

He said that within a few days, a government-administered panel will have reviewed the court ruling that annulled the contract between the government and TMG, in an attempt to reach a compromise.

One source, who requested anonymity, told Al-Masry Al-Youm that clients asked to cease paying their installments until the crisis is resolved, but the company officials rejected the request, insisting all parties remain committed to the dates set for delivering the units.

Translated from the Arabic Edition.   

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