In a statement, sent to the Securities Market Commission (CMVM) on Tuesday night, CTT said that, “following the statement of October 1, 2023, they inform that they have been notified of the decision of the Supreme Administrative Court to to revoke the ruling handed down by the Arbitration Court, which, unanimously, had condemned the State to pay CTT” a total of 23.5 million euros.
In other words, “6,785,781 euros as compensation for losses resulting from the effects of the covid-19 pandemic and 16,769,864 euros for the unilateral extension of the Concession Contract in 2021”.
This decision, “approved by a group of three judges, had a losing vote regarding the part” referring to the amount to be paid as compensation for losses arising from the effects of the covid-19 pandemic, according to Correios.
In another statement, the company led by João Bento states that “it was with great surprise that CTT was 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 to CTT the global amount of 23,555,645 euros, 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, relating to 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”, report Correios.
“A complex process followed, with a very detailed analysis of evidence that allowed CTT to successfully prove their allegations: on September 27, 2023, the Arbitration Court ruled in favor of CTT, in a unanimous, balanced and well-founded decision from the point of view of facts and law”, they continue.
Correios de Portugal states that, “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 fairness judgments and which corresponds to the amount necessary to cover the ‘losses effectively suffered by CTT’ in 2020, understanding that the pandemic constitutes 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 in accordance with the audited accounts”.
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”.
In view of this, “CTT deeply regrets this decision of the Supreme Administrative Court, and it should be noted that it was made in less than four months”.
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