Use TM Versus Ghana Case As Reference Before Criticising ISDS: Minister Mustapa

KUALA LUMPUR, Jan 29 (Bernama) -- Malaysian Minister of International Trade and Industry Mustapa Mohamed urged parties to refer to the case of a dispute between Malaysia's leading telecommunications company, Telekom Malaysia (TM) and The Republic of Ghana in 2004 before criticising the investor-state dispute settlement (ISDS). He said the ISDS mechanism that would be applied in the Trans-Pacific Partnership Agreement (TPPA) was not intended to protect foreign investors solely but was more geared to safeguard the rights of Malaysian investors in the host countries which are TPPA members. "In the case mentioned, we had been victimised. (They wanted) to seize our property. (But) with ISDS, the case could be resolved. "TM is our company, our asset. If we lose, we are finished. This is a case example involving ISDS mechanism. It could save the nation's money," he said during a winding-up debate on the TPPA motion for his ministry at a special meeting at Dewan Negara (Malaysian Senate) here, Thursday. Mustapa raised the case after being bombarded with accusations that ISDS would allow foreign investors to sue the Malaysian government indiscriminately. According to reports in 2004-2008, TM had filed an expropriation case against the Ghanaian government which had violated the agreement and took over control of the Board of Directors and Management of Ghana Telecommunications from TM. The dispute was due to the change in government whereby President John Kufour had replaced President Jerry John Rawlings. The arbitration process had prompted the Ghanaian government to resolve the disputes and gave appropriate compensation to TM. Mustapa reminded that besides TM, there were other local companies including government-linked companies that had invested in TPPA member countries where ISDS could guarantee their huge investments. Among the Malaysian companies are SP Setia, Permodalan Nasional, Petronas, YTL Corporation, Khazanah Nasional, Sime Darby, Employees Provident Fund and Lembaga Tabung Haji (the Malaysian hajj pilgrims fund board). "With ISDS, not only will they get claims, we also have rights to make claims. "We are a responsible government that protects Malaysian businesses. That is why the government feels this mechanism is important and it has proven that we could save the country's money after what happened to TM," he added. Dewan Negara on Thursday approved the motion on Malaysia's participation in the TPPA, based on voice vote which was announced by Senate President Abu Zahar Ujang. --BERNAMA