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Skadden: Slovakia Can Lose €216 Million Over Emission Quotas Scandal
Thursday 11 March 2010 Zoom in | Print page
Bratislava, March 11 (TASR) - The emission quotas scandal can drag on and on, and without immediate legal steps being taken Slovakia could lose at least €216 million, said Rainer K. Wachter, the director of Vienna branch of the American law firm Skadden Arps Slate Meagher & Flom LLP on Thursday.
"There is no immediate end in sight for this case ... its duration will directly depend on the course of action Slovakia chooses to employ. We doubt that the (Interblue) company would go out of business without transferring such a lucrative trade on to another legal entity. Hence, there's a great possibility that the Interblue Group Europe or some other subject of law will appear in future and claim a legal succession vis-a-vis the contract on emission quotas sale. It can happen anytime, until these rights lapse," said Wachter in reaction to the announcement that the new representatives of Interblue Group Europe regard the contract on emission quotas as still in effect, as evidenced by their statements on March 9.
According to Wachter, it's necessary to have Slovak authorities co-operate more closely with American bureaux, in particular the FBI and Treasury Secretary, to learn more about the financial flows by scrutinising the way the Interblue Group USA taxed its profits. "Slovakia can meet other 'legal successors' of Interblue Group USA or Interblue Group Europe, as the emission sales contract doesn't require the legal entity to consult with Slovakia on any transfer of rights and obligations to a third party – and carrying out such a transfer is easy to do." He added that if Slovakia continues to pursue its current track, serious legal complications could ensue - not only regarding the civil suit to recover the €15 million (unpaid as part of an agreement on green projects), but there's also the risk of a multi-million dollar arbitration dispute.
Environment Minister Jozef Medved last week said for the record that he deems the contract with the U.S. company Interblue Group as having terminated after the Group folded in December – and Interblue Group Europe (based in Switzerland) has to date delivered no conveyancing papers to the ministry. Slovakia sold 15 million tons of CO2 emissions for €5.05 per ton, while the firm was under the contract entitled to buy a further 35 million tons. The sale has long been criticised by the Opposition as unfavourable vis-a-vis the price at which emissions were sold in neighbouring countries such as Hungary and the Czech Republic.
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