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100 million euros from the arbitration for Becchetti / The decision that ignited international financial and legal disputes

2024-11-08 14:36:00, Aktualitet CNA

100 million euros from the arbitration for Becchetti / The decision that ignited

New evidence casts doubt on the validity of a Belgian court's decision to award €100m to Italian businessman and former owner of UK football club Leyton Orient, Francesco Becchetti.

Becchetti and the Republic of Albania are at loggerheads after he won cases against the Republic of Albania and the French-speaking Court of First Instance in Brussels ruled on October 17 that Eurocontrol, the European organization for the safety of air navigation, must pay the flight fees earned by Albania to Becchetti, effectively seizing Albania's foreign assets to settle the claim.

The media "bne IntelliNews" writes that an investigative firm hired by Albania has produced the first evidence suggesting that Becchetti interfered in the arbitration process to issue a decision in his favor.

Becchetti had invested, among other things, in Albanian energy and media. He was the founder of the Albanian television channel Agon Channel, which was often critical of the Albanian government, and his relations with the Albanian government deteriorated, leading to a series of legal disputes, writes "bne IntelliNews".

The Albanian government accused him of financial wrongdoing, including charges of money laundering and tax evasion. Becchetti countered with international arbitration claims on the ground against the Republic of Albania, claiming that the government was unfairly targeting him and that its actions were politically motivated.

In 2019, an international arbitration court ruled in favor of Becchetti, finding that the Albanian government had breached its obligations to protect foreign investment. The court ordered Albania to pay Becchetti substantial compensation. Part of the implementation of this arbitration award included the targeting of Albania's assets abroad, including the seizure of aviation fees held by Eurocontrol as part of the compensation owed to it by the Albanian government.

Investigation evidence

The Albanian government has appealed the Belgian court's decision to award Becchetti €100 million in aviation fees in multiple jurisdictions, challenging the validity of the arbitration and presenting significant new evidence.

The investigative firm conducted numerous interviews with related persons and recorded them. It also released a report listing key findings and partial transcripts of key interviews.

The firm's agents interviewed Marco Giontella, a tax consultant and longtime associate of Becchetti, several times.

According to the investigative firm's report based on these conversations, "Becchetti orchestrates premeditated fraud schemes to win arbitrations."

The report goes on to allege that Becchetti rigged results by creating connections and "corrupt practices" that allow him to seek favorable results, citing evidence presented in conversations with Giontella.

The report claims, based on his interviews, that Deutsche Bank was also a victim in a similar arbitration case with Becchetti, "bne IntelliNews" writes.

As part of the Kalivac Hydropower Project, Becchetti signed joint venture agreements with various entities, including the Albanian state bodies and Deutsche Bank AG among others. However, the project went awry and in 2010 Becchetti and Deutsche Bank began arbitration proceedings, each accusing the other of breaching the joint venture agreements.

"In the Deutsche Bank case, Mr. Becchetti used a similar method to control the appointment of the arbitration president, with the full assistance and cooperation of Mr. Giontella," the report said.

Second, the report claims, citing interviewees, that Becchetti seeks to "influence the appointments of arbitrators in his cases and their decisions through bribery." In particular, the investigators claim that there is evidence that Becchetti secured the agreement of the designated arbitrator to rule in his favor in the proceedings, reports euroreporter.

In another arbitration case, Becchetti allegedly influenced the appointment of the tribunal's president, and Becchetti's lawyer in the ICSID case enjoyed a personal friendship with the arbitral tribunal's president that jeopardized the integrity of the arbitral proceedings, the report alleges.

The report also provided a statement from the expert witness, Italian university lecturer Alberto Pasquale, in the ICSID case admitting that he had lied to the arbitral tribunal and that no real harm had been caused to Becchetti.

"Mr. Pasquale claimed that he breached his duties as an impartial expert witness through close interactions with Mr. In his fraudulent evaluation, Mr. Pasquale knowingly gave false indications and statements about the improvement and growth of Agon Channel, while having a completely different personal professional opinion (for which he was hired) – that Agon Channel had no chance to grow,” the report claims.

"Mr. Pasquale confirmed that his role was to serve the interests of the paying party (Mr. Becchetti) in the ICSID proceedings, rather than to serve as an independent and objective expert.”

The investigation firm's report and all related interview videos have been submitted to the court in Brussels in support of Tirana's calls for the decision to award Becchetti 100 million euros to be overturned, as have been submitted in all cases other legal ones initiated by the Government of Albania since that time.

Aviation security

The Republic of Albania is one of the 41 member states of Eurocontrol, which manages and collects the fees paid by airlines for flights over European territories. These fees are then redistributed to member countries, including Albania, and used for traffic management and ensuring safety in the skies.

The sequestration judge in Brussels ruled that Eurocontrol has a legal obligation to transfer the frozen funds to Becchetti's executor as part of an earlier compensation judgment against the government of Albania brought by Becchetti. The court also ruled that any related appeals should not prevent or delay payment.

Tirana has said that the decision could endanger aviation safety and essential public finances. He argues that he cannot agree for reasons of national security. Additionally, the government says the court ignored new evidence it presented accusing Becchetti of rigging the arbitration process.

The case has raised questions about the fairness and impartiality of Belgium's legal system. Additionally, the proceedings were marred by the unusual mid-trial change of judges, which has heightened concerns about potential conflicts of interest.

Among Tirana's legal challenges to the decision is a pending annulment request filed at the Paris Court of Appeal, and it has also filed a request for review of the ICSID decision. In addition, it has appealed to the Belgian Supreme Court, arguing that the funds held by Eurocontrol are vital to the country's aviation security and thus must be protected./ CNA