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04.09.2008 - Diag Human wants new arbitrator not to be Czech citizen

He at the same time confirmed that Diag Human would like to apply for a review of the original arbitration decision, according to which the state is to pay some nine billion crowns to the company in compensation for harming its lucrative deals with blood plasma.

The Czech Republic has already appealed the original arbitration ruling.

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re-assess it.

Each party in dispute has the right to select its arbitrator. They both then decide on the arbitration chairman.

"Diag Human will be selecting the arbitrator very carefully. It will probably be a person with an international reputation, not a Czech citizen," Kalvoda said.

He recalled that the original arbitrators said at least twice that Czech institutions had threatened them and exerted pressure on them during the arbitration proceedings.

This is why Diag Human decided to choose a personality who is not a Czech citizen and who would thereby better resist to similar pressure, Kalvoda added.

Diag Human seeks a review of the arbitration ruling as it is convinced it has the right to a higher compensation. Kalvoda said the sum should be about three billion crowns higher, including the interest on late-payment.

Three Czechs were in the original arbitration panel. One of them, Zdenek Rusek, is accused in the case of extensive corruption at the Defence Ministry, the daily Mlada fronta Dnes (MfD) has reported.

According to the arbitration verdict, the Czech Republic must pay 8.33 billion crowns to Diag Human as compensation as of July 2007. Since then the sum has been increasing by another interest of about 1.3 million a day, so the final sum is approaching nine billion crowns.

The case was triggered by a letter that then health minister Martin Bojar wrote to the Danish company Novo Nordisk in 1992 after which the firm cut cooperation with Diag Human. Diag Human then demanded a high compensation for the state having allegedly prevented its lucrative deals with blood plasma in the early 1990s.

Then health minister Jan Strasky (Civic Democrats, ODS) decided to submit the case to the arbitration proceedings in 1996.

In 1998 an arbitration panel recognised Diag Human's claim to compensation by the Czech Republic and a public apology. Since then the dispute has only been held over the level of compensation.

The government of Vladimir Spidla (Social Democrats, CSSD) paid 326.6 million crowns in compensation to Diag Human in 2002. The company then calculated new damage.

($1=17.172 crowns)

(Ceske Noviny)


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