The announcement was made Monday by Michael Makuei, South Sudan’s Minister of Information, Communication Technology and Postal Services and government spokesperson, following a ruling by a Tribunal constituted under the International Chamber of Commerce (ICC).
The arbitration case, which posed a severe threat to South Sudan’s economic stability, stemmed from claims by Vivacell and its investor against the government. At the outset of the hearings, the claimant sought $2.9 billion, with additional interest accruing at what the government described as an “exorbitant and extraordinary rate.”
The Tribunal’s ruling, however, dramatically reduced the financial award to $48,452,035, a decision hailed by Minister Makuei as a testament to the strength of South Sudan’s legal position and its commitment to upholding national and international law.
“We take pride in our legal team, which worked tirelessly to defend the interests of our nation,” Makuei stated. “This decision not only validates our resolve but also demonstrates our commitment to ensuring that South Sudan’s laws are upheld and respected.”
The case, which Makuei described as a challenge that “threatened our economic stability and the livelihoods of countless South Sudanese citizens,” was met with unwavering determination by the government.
The minister emphasised that the government had consistently viewed the claims as “wholly without merit,” and the significant reduction in the awarded amount reinforces this stance.
The path to this outcome was fraught with challenges, Makuei claimed. “Our spirit remained unbroken,” he said, highlighting the nation’s dedication to maintaining law and order in its business practices and defending itself against what he termed “scurrilous claims.”
While the Tribunal’s ruling marks a major victory, Makuei said the government is not resting on its laurels.
Makuei indicated that South Sudan’s legal team will thoroughly review the award before determining the next steps. “The government remains fully committed to protecting the rights and interests of the people of South Sudan,” he affirmed.
Makuei said this outcome is a critical milestone for South Sudan, a nation navigating complex economic and political challenges and that the substantial reduction in the claimed amount alleviates a significant financial burden and reinforces the government’s ability to safeguard its sovereignty and economic interests in international disputes.
Vivacell, which operated in South Sudan under the commercial name Vivacell for Network of the World (NOW), was primarily owned by Lebanon’s Fattouch Investment Group, which holds a 75% stake. The remaining 25% was owned by Wawat Securities, a company linked to the Sudan People’s Liberation Movement (SPLM), South Sudan’s dominant political party.
The telecom company had its license suspended by the South Sudanese government on March 20, 2018, with a directive to cease all operations within one week, effective by midnight on March 27, 2018.
The shutdown was due to the company’s alleged failure to comply with government regulations, including non-payment of $66 million in license fees and taxes.
International calls and texts were suspended immediately, while all services, including national traffic, were fully shut down by March 27, 2018, affecting approximately 900,000 subscribers, the biggest a telecom firm had at the time.
