Gambia’s government has reached an out of court agreement to pay $4.6 million to London-based milling company, Conapro that has sued the West African nation’s former regime for a hostile takeover of its investments.
Conapro was claiming the sum of $32 million and possibly rising to $56 million plus interests and other recoverable costs associated with the legal process.
Gambia says it has incurred at least $1.2 million in legal fees to defend the case. The negotiation saved the Gambia at least $52 million in settlement and an additional $1.3 million in legal fees.
Gambia has until 2019 to pay the $4.6 million, when its new president, Adama Barrow is expected to step aside for fresh polls to be held.
Gambia says it will pay the sum by installment and now has “exclusive ownership” of the GFFI Mill at Kamalo at the Kanifing Industrial Estate.
Former President Yahya Jammeh and his business associates have been accused of forcing Canapro out of the agreement, prompting investors of the company to sue the country.
Gambia has appointed Ms. Katherine Muhren of the International Senior Lawyers Project to assist the country’s Justice Department with addressing complex international commercial agreements.