Skopje, 25 August 2023 (MIA) — North Macedonia is facing arbitration claims totaling 1,365 billion euros in damages for alleged violations of foreign investment agreements signed by former officials prior to 2017, Deputy Prime Minister for Economic Affairs Fatmir Bytyqi told a news conference Friday.

Five arbitration proceedings are currently ongoing and two have been resolved in North Macedonia's favor, with the country receiving three million euros in damages in one of the cases, Bytyqi said.

"Reckless management, shady deals, disregard for the public good, and the years of rule by the erstwhile VMRO-DPMNE have put the country in jeopardy and our taxpayers' money, instead of being used for development projects, now has to be used for the country's defense in international dispute resolution cases," he said.

Bytyqi, who chairs the national committee on monitoring arbitration proceedings formed in 2017, said the latest arbitration claim was filed by the group Amadeus Group and Amadeus Development DOOEL related to the 'Spanish Steps' case.

"On Aug. 18, 2023, the group filed an arbitration claim against the Republic of North Macedonia according to the rules and convention of the International Center for Settlement of Investment Disputes.

"The group is seeking damages for the violation of the Bilateral Agreement for the Promotion and Mutual Protection of Investments we have signed with the Government of the Republic of Albania," Bytyqi said, adding that they were seeking damages of "no less than 110 million US dollars."

Pointing out that the group was to build a commercial building and a hotel in Skopje as well as a set of steps that were to be in the style of the famous Spanish Steps, he recalled that persons involved in the 'Spanish Steps' construction project were currently the subject of criminal prosecution in the country.

As of now, Bytyqi said, the plaintiff had submitted only superficial findings and arguments unsubstantiated by evidence and documentation that the Municipality of Centar prevented the construction.

"This procedure has been initiated several years after the alleged violation of the contract that resulted from a tender announced by the Ministry of Transport and Communications in 2012 and 2013 headed by then minister Mile Janakieski," Bytyqi said.

The second arbitration claim was filed by FCL Ambient regarding the Drisla landfill private partnership.

"On July 31, 2023, FCL Ambiente filed an arbitration claim against the Republic of North Macedonia according to the rules and convention of the International Center for the Resolution of Investment Disputes.

"FCL Ambiente is seeking damages for violations of the Agreement on Mutual Encouragement and Mutual Protection of Investments we have signed with the Italian Government on Feb. 26, 1997," he said, adding that the amount was yet to be determined.

He said the two new disputes would take at least two to three years to resolve and stressed that good legal representation was important for the reputation of the state because a good outcome in international courts confirmed the rule of law and sent a positive signal to investors.

He also said the persons who had caused or contributed to the loss of arbitration proceedings should be held accountable before the state authorities.

"Anyone who has signed a harmful contract should be held responsible," Bytyqi said in response to a reporter. "No one can hide behind collective responsibility."

He said the government forwarded every ruling of international arbitration proceedings to the Public Prosecution Office, which was to go after the persons responsible. mr/