Supreme Court exempts State from paying 23.5 million euros in compensation to CTT – Telecommunications

The Supreme Administrative Court revoked a ruling by the Arbitration Court that had ordered the State to pay CTT a total of more than 23.5 million euros in compensation. The information was communicated by post to the Securities Market Commission (CMVM) on Monday night.

Of the total amount (23,555,645 euros), 6,785,781 euros would be due for losses resulting from the effects of the covid-19 pandemic and another 16,769,864 euros were related to the unilateral extension of the concession contract in 2021.

“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 CTT the global amount of 23,555,645 euros, a title of 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”, indicates the company in a note sent to journalists. The process, through arbitration, was initiated by CTT, in June 2021, to exercise their right to compensation, following several contacts with the Government.

“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”, explains the company led by João Bento.

The value of compensation for the pandemic (6,785,781 euros) corresponds to the amount that was determined and considered necessary to cover the “losses actually suffered by CTT” in 2020, with the court understanding that the pandemic constitutes an abnormal change in circumstances and which had a negative impact on the execution of the Concession Agreement.

On the other hand, 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.

“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 defeated in relation to the first request”, indicates the company.