Brookfield Asset Management Inc. has filed a US$2.7 billion arbitration case against Peru, alleging illegal expropriation of toll roads it operates in Lima. The dispute has been ongoing, with prior rulings ordering Lima to pay damages, which remain unpaid. The Lima government has countered with lawsuits claiming the toll concession involved bribery, while Brookfield denies any corruption during its ownership.
Brookfield Asset Management Inc. has initiated arbitration against the government of Peru, claiming illegal expropriation of toll roads the firm operates in Lima. The company demands US$2.7 billion in damages, asserting that the city government has unlawfully prevented them from collecting toll payments, an issue that has persisted for years. The current arbitration is being pursued under the Peru-Canada free trade agreement, signifying a notable escalation in the dispute.
In prior cases, the city of Lima was ordered to compensate Brookfield with US$200 million, which has yet remained unpaid. In response to Brookfield’s arbitration, Lima officials have expressed regret over the situation, labeling the halted toll payments as “inhuman and harmful” to residents. Furthermore, Lima has filed a counter lawsuit in U.S. federal court, alleging that Brookfield acquired the toll road concession through corruption linked to its previous owner, Odebrecht, a Brazilian company notorious for engaging in bribery throughout Latin America. Brookfield has denied any involvement in corruption under its ownership.
This arbitration intensifies the situation for Lima’s Mayor, Rafael Lopez Aliaga, who openly campaigned on the promise of abolishing Brookfield’s toll collections. The mayor, recognized as a conservative figure and former presidential candidate, may consider running in the upcoming election, which adds a political dimension to the ongoing legal struggles between Brookfield and the city government.
In summary, Brookfield Asset Management Inc. has filed for arbitration against the Peruvian government, seeking US$2.7 billion in damages due to allegations of illegal toll road expropriation. The company has faced ongoing issues collecting tolls due to actions by the Lima city government and has previously won a significant arbitration judgment against the city. This case highlights the intersection of business operations and legal politics in Peru, as city officials counter with their own allegations regarding corruption.
Original Source: financialpost.com
