{"id":1005,"date":"2021-06-18T16:04:03","date_gmt":"2021-06-18T16:04:03","guid":{"rendered":"https:\/\/www.africa-press.net\/mozambique\/?p=1005"},"modified":"2021-06-18T16:05:01","modified_gmt":"2021-06-18T16:05:01","slug":"cta-proposes-arbitration-to-avoid-legal-war-with-total-energies-watch","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mozambique\/economy\/cta-proposes-arbitration-to-avoid-legal-war-with-total-energies-watch","title":{"rendered":"CTA proposes arbitration to avoid \u201clegal war\u201d with Total Energies"},"content":{"rendered":"

AfricaPress-Mozambique:<\/strong> Mozambique\u2019s Confederation of Economic Associations of Mozambique (CTA), the country\u2019s main employers\u2019 association, on Wednesday suggested that, to avoid a protracted \u201clegal war\u201d, problems between the oil company Total and Mozambican companies be resolved through arbitration locally.<\/p>\n

\u201cWe would prefer local arbitration, to avoid some of these cases, due to exhaustion, becoming legal battles,\u201d Simone Santi, chairman of the CTA\u2019s Natural Resources and Energy department, told journalists in Maputo.<\/p>\n

\u201cWe have to avoid this becoming a legal war where, obviously, small and medium-sized companies may be swallowed up\u201d, taking into account that \u201cmost cases could be resolved through negotiation\u201d, Santi added.<\/p>\n

At issue is the suspension of the Cabo Delgado gas project, the largest private investment underway in Africa, and the resulting losses for local companies supplying goods and services, which have made investments and taken out loans to purchase goods.<\/p>\n

The CTA says that 28 Mozambican supply companies responding to a survey by the confederation have late payments due from TotalEnergies or its contractors. The association acknowledges that it expected to have around 40, but several firms did not provide information.<\/p>\n

The 28 claimants said they had signed contracts totalling US$115 million (\u20ac94.87 million), mostly related to civil construction works, construction materials and health and safety.<\/p>\n

Of the aforementioned amount, \u201cUS$38 million (\u20ac31.34 million ) already had purchase orders issued, US$20 million (\u20ac16.50 million) has already been paid, and US$18 million (\u20ac14.85 million) remains in the form of debt,\u201d deputy chairman of the Natural Resources and Energy department at the CTA Gulamo Aboobakar reports<\/p>\n

TotalEnergies has not yet commented on the US$43.6 million (\u20ac35.96 million) of \u201cimported or purchased goods, which are in storage, and others that have been ordered and\/or produced,\u201d he added.<\/p>\n

\u201cIt\u2019s a situation which is still unresolved\u201d and the amount remains \u201cunder discussion,\u201d Aboobakar said.<\/p>\n

The total amounts in dispute may be higher, as there are more Mozambican SMEs involved in the gas project.<\/p>\n

The suspension of the project came after the March 24 attack on the town of Palma, the district headquarters less than ten kilometres from the Afungi site, and due to a lack of security in the region, which has been targeted by armed insurgent groups for three years.<\/p>\n

The CTA also urged the French oil major and its subcontractors to jointly clarify to Mozambican small and medium enterprises (SMEs) the status of the contracts and issue a direct communication to creditor banks to \u201cminimise their pressure on SMEs\u201d \u2013 pressure which Simone Santi said was \u201csuffocating\u201d the companies.<\/p>\n

\u201cSMEs are not sure whether their contracts are suspended or terminated,\u201d he said, adding that TotalEnergies had asked for ten days to respond to CTA\u2019s proposal.<\/p>\n

According to the Zitamar website, in response to written questions at the last general meeting, in May, Total said that, in order to limit the impact of the force majeure decision under which it suspended the project, it had terminated 62 contracts related to its operations in the country, of which 45 were with companies registered in Mozambique.<\/p>\n","protected":false},"excerpt":{"rendered":"

AfricaPress-Mozambique: Mozambique\u2019s Confederation of Economic Associations of Mozambique (CTA), the country\u2019s main employers\u2019 association, on Wednesday suggested that, to avoid a protracted \u201clegal war\u201d, problems between the oil company Total and Mozambican companies be resolved through arbitration locally. \u201cWe would prefer local arbitration, to avoid some of these cases, due to exhaustion, becoming legal battles,\u201d […]<\/p>\n","protected":false},"author":84,"featured_media":996,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[324,431],"class_list":["post-1005","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-cta","tag-legal-war"],"yoast_head":"\nCTA proposes arbitration to avoid \u201clegal war\u201d with Total Energies - Mozambique<\/title>\n<meta name=\"description\" content=\"Mozambique\u2019s Confederation of Economic Associations of Mozambique (CTA), the country\u2019s main employers\u2019 association, o\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/mozambique\/economy\/cta-proposes-arbitration-to-avoid-legal-war-with-total-energies-watch\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CTA proposes arbitration to avoid \u201clegal war\u201d with Total Energies\" \/>\n<meta property=\"og:description\" content=\"Mozambique\u2019s Confederation of Economic Associations of Mozambique (CTA), the country\u2019s main employers\u2019 association, o\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/mozambique\/economy\/cta-proposes-arbitration-to-avoid-legal-war-with-total-energies-watch\" \/>\n<meta property=\"og:site_name\" content=\"Mozambique\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-18T16:04:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-06-18T16:05:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/liberia\/sites\/64\/2021\/06\/santis.m.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"801\" \/>\n\t<meta property=\"og:image:height\" content=\"477\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/economy\/cta-proposes-arbitration-to-avoid-legal-war-with-total-energies-watch#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/economy\/cta-proposes-arbitration-to-avoid-legal-war-with-total-energies-watch\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"CTA proposes arbitration to avoid \u201clegal war\u201d with Total Energies\",\"datePublished\":\"2021-06-18T16:04:03+00:00\",\"dateModified\":\"2021-06-18T16:05:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/economy\/cta-proposes-arbitration-to-avoid-legal-war-with-total-energies-watch\"},\"wordCount\":505,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/economy\/cta-proposes-arbitration-to-avoid-legal-war-with-total-energies-watch#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/liberia\/sites\/64\/2021\/06\/santis.m.jpg\",\"keywords\":[\"CTA\",\"legal war\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/mozambique\/economy\/cta-proposes-arbitration-to-avoid-legal-war-with-total-energies-watch#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/mozambique\/economy\/cta-proposes-arbitration-to-avoid-legal-war-with-total-energies-watch\",\"url\":\"https:\/\/www.africa-press.net\/mozambique\/economy\/cta-proposes-arbitration-to-avoid-legal-war-with-total-energies-watch\",\"name\":\"CTA proposes arbitration to avoid \u201clegal war\u201d with Total Energies - 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