The Kuwait-based software supplier and owner of Pakistan Automated Customs Computerised System (PaCCS), 'Agility', has approached French court and International Centre for Settlement of Investment Disputes (ICSID) for the settlement of pending dues of $64 million for its past services.
The cases have been registered in both courts, with pending status on the request of Agility. Agility said it had no option but to move in that direction following Federal Board of Revenue's (FBR's) decision to expand WebBased System (WeBOC) to all terminals, ie Port Qasim, PICT and KICT, simultaneously, during the last four months, without intimating to the owner.
Thus WeBOC replaced PaCCS, an automated computerised system implemented by Agility about seven years back on the requirement of Government of Pakistan. The system was launched to automate the country's customs procedures, which generated huge revenues since its launch in 2005.
Considering best practices of the system, it was expanded to all container terminals in the country and, according to customs officials, not only huge revenues were generated, the volume of trade had also increased. The abrupt unnoticed replacement of PaCCS is likely to lead the FBR into further trouble as Agility officials are seriously monitoring FBR's choice and violation of negotiations.
Almost a year ago, the FBR had given assurance to Agility that it (FBR) would purchase the system after determining its present value, but taxpayers and Agility officials feel that the FBR just borrowed time to launch its own software. Agility officials are still silently observing and waiting to hear from FBR on the commitments it had made during the negotiations. FBR, a respondent in the case, is reportedly avoiding ICSID proceedings to settle the dispute out of the court, according to informed sources.
Sources said that any organisation has legal right to approach the court/tribunal internationally to settle its dispute with another country. ACSID is an autonomous international institution established under the Convention on the Settlement of Investment Disputes between states and nationals of other states. Pakistan is one of the 140 member-states. The primary purpose of ICSID is to provide facilities for conciliation and arbitration in international investment disputes. Indifferent attitude of the FBR had compelled Agility to approach ICSID, and the case was registered by the Secretary General for arbitration proceedings.