By Politico Staff Writer
The Minister of Trade and Industry, Dr. Hinga Sandy has asserted Government’s commitment to protect investors’ rights and create an enabling environment for direct foreign investment.
He was speaking at the 45th Session of the United Nations Commission on International Trade Law Working Group III on Investor-State Dispute Settlement (ISDS) Reform.
Dr. Sandy acknowledged the need for States to have the right to regulate and be protected to achieve the goals and principles of sustainable development.
“Sierra Leone welcomes the work of Working Group III, particularly on the structural reform option and the proposed establishment of a Multilateral Investment Court to address the current ISDS concerns. We also recognize the value of the significant work to improve the system through bilateral tools and incremental reform,” he said.
He commended the important efforts of the team at the Secretariat in increasing the profile of the work of the Commission and its Working Groups, particularly on investor-state dispute settlement reform. He made reference to August 2019, when Sierra Leone experienced its first investor-State arbitration dispute, adding that the claim was based on rights under a large-scale license agreement to mine iron ore in Sierra Leone, which has been settled.
“It became apparent to the Government of Sierra Leone that the identified and considered concerns regarding ISDS, including cost, were real and impact paralyzing,” he said.
According to the minister, the value of the claim was hanging over the government like the sword of Damocles. He added that the cost of the arbitration, including fees for representation, adversely impacted governments’ decisions to assert a right or defence over the usual duration of ISDS cases, particularly for a least developed country.
He spoke about the vital resources that are needed to be spent on development programmes to fulfill the development aspirations of the people. He cited the government’s flagship “Free Quality Education Programme”, which he said has devoted over 21% of the national budget in the past years to Human Capital Development.
In his conclusion, Dr. Sandy stated that finalizing the Code of Conduct will be a concrete demonstration of the laudable work the Group can get done, working together on its important mandate on the possible reform of ISDS.
Copyright (c) 2023 (31/03/23)
