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US court rejects Aenergy's legal dispute with Angola

A New York judge decided to reject the trial of the lawsuit filed in the United States by Aenergy against the government of Angola and General Electric. The judge considered that that court is not appropriate to evaluate the dispute and referred it to Angola.

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According to the US website Law360, quoted by Jornal de Negócios, in his opinion, John P. Cronan, the US district judge who evaluated the legal dispute, concluded that Aenergy and its Angolan subsidiary when conducting business in Angola determined to "subject themselves to Angolan law."

"Courts usually have little sympathy for plaintiffs-even Americans-who conduct business in foreign lands and then try to complain here," the judge indicated.

The magistrate also recalls that Aenergy has advanced an application in Angola's Supreme Court, which raises questions about its argument that Angola "is an inconvenient forum."

"Why would the plaintiffs bother to do this diligence if they really believed that in Angola there is no due process of law?" asked John P. Cronan.

Speaking to Lusa, the president of Aenergy said that the company and its lawyers are "calm" because they were already prepared for a legal war of at least five years.

"Naturally, we will file an appeal. We will continue on several fronts and we will not give up any, we are convinced of our cause," said Ricardo Machado, admitting that the answer will be expeditious and will arrive in the next three months.

Aenergy is complaining about the breach of contracts for the supply of turbines and maintenance of power plants in Angola, asking to be compensated in the amount of 550 million dollars.

The case dates back to 2017, the year in which contracts were signed between Aenergy and Angola for the construction of new power plants in the African country.

According to Jornal de Negócios, that agreement was financed by a credit line worth $1.1 billion with General Electric, which defined the purchase by Aenergy of eight turbines.

However, in 2019, Angola cancelled the contracts, claiming that Aenergy had misrepresented the credit line to purchase four more turbines without authorization.

The case reached the bar of the courts, and in May 2020, Aenergy filed a lawsuit in which it accused General Electric of forging documents to defame it and take over its work. It also pointed the finger at the Angolan government, claiming that it agreed with the scheme to go ahead with cancelling the contracts before paying it.

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