South Sudan hails legal team for saving billions in Vivacel case

The government of South Sudan has praised its legal team after a tribunal under the International Chamber of Commerce reducced Vivacel’s compensation demand from $2.9 billion to just $48 million.

Speaking to the press in Juba on Monday, Information Minister and Government Spokesperson Michael Makuei said the arbitration was initiated by Vivacell, also known as Network of the World and its investor against the Republic of South Sudan

“At the date of the first hearing, the claimed amount was an astonishing 2.9 billion US Dollars with interest continuing to accrue at a claimed exorbitant and extraordinary rate- I am pleased to report that the Tribunal's decision in the arbitration has substantially reduced the amount claimed against us, highlighting the strength of our legal position,” said Makuei.

Makuei praised South Sudan’s legal team for working hard to ensure the government wins the case.

“We take pride in our legal team, which worked tirelessly to defend the interests of our nation, leading to a substantial reduction in the financial award from the initial claim of several billion US dollars to USD 48,452,035 plus interest and cost,” he said.

In October 2003, Network of the World (NoW) , operating under the trade name of Vivacell, obtained a license to provide mobile telecommunication services in what was then Southern Sudan from the New Sudan Telecommunication Corporation.

However, after South Sudan gained its independence in 2011, it established telecoms regulator, the National Communication Authority (NCA) to regulate the telecoms market.

In 2018, NCA imposed standard licensing fees on NoW, and all other mobile operators in South Sudan, however NoW refused to comply leading to its suspension of operation in the country.

Makuei said the decision by the court demonstrates the country’s commitment to international law, ensuring that South Sudan's laws are upheld and respected.

“It is important for all of you to know that the path we have travelled through has not been easy. We faced claims that threatened our economic stability and the livelihoods of countless South Sudanese citizens- this case is a testament to our dedication to upholding law and order in our business practices and to defending the nation against scurrilous claims,” he said.

Makue said lawyers are reviewing the decision of the court before the next course of action.

“The government remains fully committed to protecting the rights and interests of the people of South Sudan,” Makuei said.