Press Release – Quantum Global Seeks a Negotiated Settlement in Contract Dispute

News 17 May 2018

FSDEA Legal Proceedings Accelerating Value Destruction of the Angolan People’s Investment Portfolio

Quantum Global Seeks a Negotiated Settlement in Contract Dispute

LUANDA, Angola, May 17, 2018 – Quantum Global Group today provided an update on the destruction in value to the investment portfolio managed on behalf of the Fundo Soberano de Angola (FSDEA).  The group also reiterated its desire to negotiate a settlement to the contract dispute in a professional manner, something the administration of the FSDEA does not seem to want.

The money invested in more than a dozen businesses across Angola and Sub-Saharan Africa have created hundreds of jobs and generated wealth for communities across the continent. This value is being progressively destroyed due to the FSDEA’s aggressive legal strategy and continued refusal to negotiate in good faith and conclude a settlement to what is essentially a contract dispute.

By continuing to resort to misconceived legal proceedings in Mauritius and the UK, the FSDEA is destroying value in their own investments. The portfolio companies cannot pay salaries, maintain operations, fulfil contract obligations to fund construction of new buildings or pay taxes or legal bills. Specific destructive outcomes include the following:

  • Illegal logging is expected to start immediately at Estrela da Floresta forest concessions without a management team in place
  • New plantations are already burning in the dry season due to a lack of local Angolan employee management
  • Without a management team in place, Fazangola farms cannot guarantee the harvest can be done at this critical point in the season
  • Angolan Fazangola workers will not be paid, depriving them of their livelihood and ability to support their families
  • The main contractor in the refurbishment of the Lusaka Intercontinental Hotel has stopped the redevelopment project exposing the Hotel Fund to significant legal liabilities
  • Several small Angolan businesses providing services to portfolio companies have not been paid

Ultimately, it is the Angolan people who are being hurt the most as they are the owners of the investment portfolio and the ones who were feeling the benefits of these investments through local employment, which is being impacted by the legal approach of the FSDEA.

Quantum Global will continue to defend its reputation against the unwarranted assaults through legal proceedings in Mauritius and the UK. But at the same time, the group looks forward to resolving this contractual dispute in a professional manner.

Media contact
Olivio Gambo
Djembe Communications
Tel: +244 923 614 857
olivio.gambo@djembecommunications.com