Govt to pay compensation to Dutch firm
Saturday, 30 October 2010
FHM Humayan Kabir
Bangladesh government is going to pay compensation to a Dutch computer firm for losing a court battle in a case filed against it for breaching contract with the computer supplier in 2001, officials said.
A government team will leave for the Netherlands in the second week of next month to negotiate with the Dutch firm out of court to reduce the mount of compensation, government officials said.
As per Dutch court order, Bangladesh would have to pay €6.1 million compensation to the Tulip Computer International BV for breaching a deal with the Dutch computer supplier.
"We will go to the Netherlands to negotiate with the Tulip Computers. We will request the firm to reduce the compensation amount," a member of the proposed Bangladesh negotiation team told the FE.
In June 2001, the education ministry during the previois Awami League government regime signed a contracted with Tulip Computers to buy 10,388 computers for the schools and colleges and train up teachers at a cost of Tk909 million.
However, the subsequent BNP-led alliance government scrapped the deal saying the quoted price of the computers was much higher than the market rate.
In November 2002, Tulip filed a case before a Netherlands district court to have the agreement rescinded and claimed damages from Bangladesh for breaching the contract.
On May 14, 2003, the court ordered Bangladesh government to pay €4,216,648 compensation and €6,444.12 as the expenses for the case to the computer firm.
The BNP-led administration did not comply with the Dutch court's ruling, and refused to pay compensation. The company then filed a case with an international tribunal, which was also directed Bangladesh to repay the claim.
In November 2004, Bangladesh issued a writ to the Dutch Supreme Court against the judgment, which also went against the country.
The proposed Bangladesh negotiation team member said if Bangladesh does not pay the compensation, the principal amount and its interests will increase for each day delay.
"The Prime Minister has asked the negotiation team to settle the compensation out of court in the Netherlands so that the government can pay less than €6.1 million as claimed by the Dutch firm," he said.
The team will visit the Netherlands from November 12-25 for negotiating with the Tulip Computer International BV.
Bangladesh government is going to pay compensation to a Dutch computer firm for losing a court battle in a case filed against it for breaching contract with the computer supplier in 2001, officials said.
A government team will leave for the Netherlands in the second week of next month to negotiate with the Dutch firm out of court to reduce the mount of compensation, government officials said.
As per Dutch court order, Bangladesh would have to pay €6.1 million compensation to the Tulip Computer International BV for breaching a deal with the Dutch computer supplier.
"We will go to the Netherlands to negotiate with the Tulip Computers. We will request the firm to reduce the compensation amount," a member of the proposed Bangladesh negotiation team told the FE.
In June 2001, the education ministry during the previois Awami League government regime signed a contracted with Tulip Computers to buy 10,388 computers for the schools and colleges and train up teachers at a cost of Tk909 million.
However, the subsequent BNP-led alliance government scrapped the deal saying the quoted price of the computers was much higher than the market rate.
In November 2002, Tulip filed a case before a Netherlands district court to have the agreement rescinded and claimed damages from Bangladesh for breaching the contract.
On May 14, 2003, the court ordered Bangladesh government to pay €4,216,648 compensation and €6,444.12 as the expenses for the case to the computer firm.
The BNP-led administration did not comply with the Dutch court's ruling, and refused to pay compensation. The company then filed a case with an international tribunal, which was also directed Bangladesh to repay the claim.
In November 2004, Bangladesh issued a writ to the Dutch Supreme Court against the judgment, which also went against the country.
The proposed Bangladesh negotiation team member said if Bangladesh does not pay the compensation, the principal amount and its interests will increase for each day delay.
"The Prime Minister has asked the negotiation team to settle the compensation out of court in the Netherlands so that the government can pay less than €6.1 million as claimed by the Dutch firm," he said.
The team will visit the Netherlands from November 12-25 for negotiating with the Tulip Computer International BV.