IDC revives bid to recover $62m from Romanian Govt

The Industrial Development Corporation of Zimbabwe Limited (IDCZ) has revived its bid to recover $62 million from the Romanian government as compensation for a failed joint sheet glass manufacturing project with the latter's former state owned enterprise, Romsit.

The IDC's claim is based on the 1999 determination by the Paris - based court, International Court of Arbitration that Romsit SA pays the $4 211 750 for failure to comply with the terms of the contract. The amount has now risen to $9 090 933 with interest.

The IDCZ has also demanded for a further compensation for the "expropriation of IDC's rights" from the Romanian government through the International Court for the Settlement of Investment Disputes (ICSID).

IDC spokesperson Mr Derick Sibanda said that they are hopeful that after years of failing to secure compensation the Romanian government would finally comply with the International Court of Arbitration's determination. "It is not contestable and that as a member of the European Union, the Romanian Government should respect the international trade regulations," he said.

"The IDCZ has been greatly prejudiced by the non-performance of the Romanian contractor, (Romsit) and because of this failure a sheet glass making plant is lying idle in Kadoma and hundreds of jobs were lost."

He said Zimbabwe was presently importing all its sheet glass while such a plant exists.