Supreme Court revokes court decision that forced State to pay 23.5 million to CTT

CTT informed the market about the decision of the Supreme Administrative Court to revoke the ruling handed down by the Arbitration Court, which, unanimously, had condemned the State to pay CTT the amounts of 6,785,781 euros [6,8 milhões de euros] as compensation for losses resulting from the effects of the Covid-19 pandemic and 16,769,864 euros [16,8 milhões] for the unilateral extension of the Concession Agreement in 2021.

“This decision, approved by a group of three judges, had a losing vote regarding the party”, reveal the post.

The company led by João Bento says that “it was with great surprise” that they were informed of the decision of the Supreme Administrative Court, which revokes the September 2023 ruling of the Arbitration Court which, unanimously, condemned the State to pay CTT the global amount from 23,555,645 euros [23,5 milhões]as compensation for the effects of the pandemic on the operation of the Universal Postal Service and to restore the financial balance of the contract, for the year 2021.

On June 11, 2021, following several contacts with the Government, CTT, following its instructions, resorted to arbitration to exercise its right to compensation. “A complex process followed, with a very detailed analysis of evidence that allowed CTT to successfully prove its allegations”, says the company in a statement.

CTT recalls that on September 27, 2023, the Arbitration Court decided in favor of CTT, “in a unanimous, balanced and well-founded decision from the point of view of facts and law”.

Thus, they add, “with regard to the impact of the Covid-19 pandemic, the Court ordered the State to pay CTT the amount of 6,785,781 euros, determined according to equity judgments and which corresponds to the amount necessary to cover the losses actually suffered by CTT ‘ in 2020, understanding that the pandemic represents an abnormal change in circumstances that had a negative impact on the execution of the Concession Contract, that is, recognizing CTT’s right to be compensated for the loss actually suffered according to the audited accounts; and regarding the unilateral extension of the Concession Contract, the Court ordered the State to pay 16,769,864 euros to restore the financial balance of the contract for the year 2021”.

This decision now dies with the verdict of the Supreme Administrative Court.

“CTT deeply regrets this decision of the Supreme Administrative Court, and it should be noted that it was made in less than 4 months. This decision was voted unsuccessful in relation to the first request”, concludes the company.