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Energy

US court rejects AEnergy's lawsuit against the Angolan state

A US court rejected the action of AEnergy electric company against the Angolan State due to the rescission of contracts for the supply and maintenance of thermoelectric power stations, considering that the matter falls within the competence of the Angolan justice.

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Lusa contacted an AEnergy official to obtain a comment on the Washington court's decision, but he preferred not to comment.

The judge granted Angola's petition to reject AEnergy's action, invoking a previous decision by a New York court, according to the sentence to which Lusa had access.

In April 2022, the US court refused to rule on a lawsuit filed by AEnergy against the Angolan State, related to the termination of the contracts it had signed with the Government to build and operate thermoelectric power stations, referring the case to Luanda.

Angola was acquitted, in the first instance, in the action brought by AEnergy, because the Court of Appeal of the Second District of New York understood that the appropriate forum to judge the cause was the Angolan one, and the company also lost the appeal.

In his sentence, judge Trevor MacFadden disagreed with the electric company's argument that it could not obtain a fair decision in Angola, invoking the delay of the Angolan courts, namely the Supreme Court, considering that this does not serve to demonstrate that the procedural guarantees are inadequate.

"AEnergy's impatience with the Angolan justice system does not mean that it is deprived of an opportunity to receive assistance," the judge wrote.

AEnergy has been involved in a dispute with Angola since the Angolan executive terminated, in 2019, several contracts with the company, alleging breach of trust due to alleged irregularities, accusations that the company rejects, guaranteeing that it warned the Angolan executive and that it carried out several projects without receive payment.

The process dates back to 2017, when the energy company, led by the Portuguese Ricardo Machado, was hired to build and operate several state power plants. The deal was financed through a 1.1 billion dollars credit line with a General Electric (GE) unit, which stipulated that AEnergy would buy eight GE turbines for those plants.

Angola terminated the contracts in 2019, claiming breach of trust for an alleged change to GE's credit line to buy four more turbines without approval.

In the action filed in May 2021, AEnergy alleged that GE falsified documents to defame the electricity company and take over its work and accused the Angolan Government of agreeing to the scheme so that it could cancel the contracts before full payment and seize the four turbines for your benefit.

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