The ETG Group is demanding, in an arbitration court, that the Mozambican state pay more than 120 million dollars in damages for the judicial seizure of the firm's assets, in a dispute involving the export of bóer beans.

According to a Savannah newspaperIn a statement released on Wednesday (16), the business conglomerate accused the Mozambican state of having orchestrated and facilitated the illegal expropriation of assets, violated the rule of "fair and equitable treatment", and resorted to coercion and harassment of workers.

"Today, the ETG Group filed a request for arbitration claiming compensation of more than 120 million US dollars against the Republic of Mozambique for the role of the State in the expropriation of ETG's products, in violation of investor rights in the country," the business group said in the press release.

According to ETG, on the other hand, the Mozambican government "has not guaranteed the firm's right to export goods without any restrictions".

"ETG has tried numerous times to resolve the issue amicably with the state, but all efforts to date have been in vain. ETG therefore has no alternative but to initiate investment arbitration against Mozambique in order to recover the losses suffered at the hands of the state," the statement said.

ETG says that on January 17, 2024, it filed a notice of dispute against the Mozambican government for alleged illegal actions in relation to its assets and commercial activities and, on May 13, 2024, it again questioned the authorities on the same matter, warning of its intention to resort to arbitration.

"Unfortunately, there has been no serious attempt by the Mozambican government to resolve the matter," the statement reads.

As a result of the state's illegal actions, ETG's operations in Mozambique have been substantially damaged, causing significant harm to the country, the region and the company, the statement said.

In May, the ETG conglomerate threatened to go to international arbitration courts over the dispute it has had for months in Mozambique with RGL over the export of bóer beans.

The position is set out in a letter sent by ETG to the Mozambican Attorney General's Office (PGR), in which the conglomerate, which has been operating in Mozambique for 25 years, recalls that it has been trying for several months to recover a cargo of agricultural products worth 55 million dollars that was seized at the port of Nacala as part of the dispute.

The court in Nacala-Porto decided "not to follow" the Mozambican Attorney General's Office, which had ordered the case against Royal Group Limitada (RGL) and competitor ETG, which led to the seizure of the conglomerate's agricultural products, to be dropped.

At the time, ETG accused RGL of stealing its products "with total impunity" through "illicit networks" in the ports of Nacala and Beira.

In a statement, ETG claims that Royal Group is hiding behind the unfounded claim that the Mauritian group was responsible for the complaint to the Indian authorities that the company exported "GMO products [genetically modified products] with false certifications to India.

"At no time was ETG involved with anything related to this cargo," the press release said.

The company pointed out that the rival company brought "unfounded criminal proceedings a year ago", which led to the seizure of assets and the illegal detention of one of the firm's employees in December.

This action "appears to be an attempt by Royal Group to recoup its losses in India through unfounded litigation against ETG," the company notes.

(Photo DR)