TCW explains its lawsuit

[NewsWhore]

TCW, a US$132 billion capital management company and a subsidiary of the Societe Generale of France, issued a press release yesterday in Los Angeles, California, explaining why it was suing the Dominican Republic in the International Court of Arbitration in New York. According to Diario Libre, the lawsuit was filed on behalf of the EdeEste electricity distribution company and the majority stockholder in EdeEste, DR Energy Holdings, Ltd. According to the statement, TCW says that the investment made by DR Energy Holdings in EdeEste was "destroyed" as a rest of actions by the Dominican government that failed to honor the terms of the legal structure that were promised when the energy sector was privatized in 1999. In a statement by Blair Thomas, the president of DR Energy Holdings, "this case constitutes a considerable violation of the most basic rules that govern foreign investments." The lawsuit mentions the denial that prevented EdeEste from changing its electricity rates, the issue of the non-regulated electricity consumers and the role of fuel costs on electricity tariffs. DR Energy Holdings also said that the government failed to respect the exclusive nature of its distribution contract and did not make the required capital investments. An additional failure, that of not enforcing the criminal prosecution laws for consumers who steal electricity, was also noted.

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