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Case Overview
In Global Voice Group v. Guinea, an ICC tribunal seated in Paris and applying Guinean law addressed a dispute arising from a 2009 Partnership Agreement for the provision of telecommunications monitoring services. The Claimant, Global Voice Group S.A. (GVG), a Seychelles-based company, alleged that the Respondents, the Postal and Telecommunications Regulatory Authority of Guinea (ARPT) and the Republic of Guinea, had abusively terminated the agreement and failed to pay for services rendered. The Respondents counterclaimed, seeking to nullify the agreement on grounds of corruption and violation of Guinean public procurement law, and sought restitution of sums paid to GVG.
Procedural History
GVG filed its Request for Arbitration on December 8, 2016. The tribunal was constituted on July 6, 2017, with Sophie Nappert as President, Charles Jarrosson (appointed by Claimant), and Carmen Núñez-Lagos (appointed by the ICC Court after Respondents' failure to nominate). The seat of arbitration was Paris, France, and the proceedings were conducted under the 2012 ICC Rules. The parties exchanged written submissions, and a hearing was held in Paris from January 28-30, 2019. The tribunal issued its Final Award on July 18, 2019.
Key Issues and Positions
Jurisdiction
Respondents challenged the tribunal's jurisdiction, arguing that (1) the arbitration clause was incompatible with Guinea's Public Procurement Code (CMP), which they claimed mandated ad hoc arbitration for such contracts, and (2) the Republic of Guinea was not a proper party to the agreement, having signed only as a supervisory authority. GVG argued that the ICC arbitration was not incompatible with the CMP and that Guinea's extensive involvement in the negotiation, execution, and benefits of the contract established its consent to be a party.
Merits
Respondents argued the Partnership Agreement was void for violating the CMP's mandatory public tender requirements and for being procured through corruption. They sought restitution of over USD 48 million paid to GVG. GVG countered that the agreement was not subject to the CMP, or alternatively, that any non-compliance was justified by the political instability and state of urgency in Guinea at the time of signing. GVG vehemently denied all allegations of corruption. GVG claimed that Respondents' cessation of payments in May 2014 and subsequent actions constituted an abusive and unfounded termination of the contract. Respondents argued that the termination was justified due to GVG's poor performance and numerous contractual breaches.
Quantum
GVG claimed over USD 106 million in damages for unpaid invoices and lost profits, based on the original contract rate of USD 0.07 per minute. Respondents argued that if the contract was valid, damages should be calculated based on a lower rate of USD 0.025 per minute, as agreed in a 2012 Addendum. GVG sought to nullify this Addendum, claiming it was signed under duress.
Tribunal/Court Reasoning and Holdings
Jurisdiction
The tribunal affirmed its jurisdiction over both Respondents. It found no incompatibility between the ICC arbitration clause and the Guinean CMP, holding that the CMP's reference to arbitration was general and did not preclude institutional arbitration. On jurisdiction *ratione personae*, the tribunal found that the Republic of Guinea was a party to the arbitration agreement. It reasoned that Guinea's deep and active involvement throughout the life of the contract—from its negotiation and signing to its implementation and financial benefits (recovering over USD 212 million in fiscal revenue)—demonstrated a clear intent to be bound by the agreement and its arbitration clause.
Merits
The tribunal rejected Respondents' counterclaims to nullify the agreement. It dismissed the claim based on violation of public procurement law, holding that the Respondents were estopped from raising this objection for the first time in the arbitration after having performed and benefited from the contract for years without protest. The tribunal found it would be contrary to the duty of good faith to allow the State to invalidate a contract on the basis of its own regulations which it had chosen to disregard. The tribunal also dismissed the corruption allegations, finding that Respondents had failed to meet their burden of proof. The evidence presented did not constitute a "grave, precise, and concordant" body of indices sufficient to establish corruption. Consequently, the tribunal found the Partnership Agreement, the 2009 Avenant, and the 2012 Addendum to be valid and binding. It held that the Respondents' termination of the agreement was abusive and without legal foundation.
Quantum/Damages
The tribunal upheld the validity of the 2012 Addendum, rejecting GVG's claim of duress. It found that the renegotiation, while occurring in a tense context, was a commercial decision made by GVG to preserve the project. Therefore, damages were calculated based on the reduced rate of USD 0.025 per minute established in the Addendum, not the original USD 0.07 rate. The tribunal rejected GVG's claims for amounts it had waived under the Addendum.
Disposition / Relief
The tribunal ordered the Respondents to pay GVG a total of USD 21,797,699.47, comprising USD 6,824,441.28 for unpaid invoices from June 2014 to May 2015, and USD 14,973,258.19 for estimated lost revenue from June 2015 to the contract's valid end date of May 22, 2017. The tribunal awarded simple post-award interest at 2% per annum. All of Respondents' counterclaims were dismissed. The tribunal also ordered Respondents to bear a portion of GVG's legal costs and arbitration fees.