29 April 2018

Quantum Global Group Denounces Intimidating FSDEA Tactics Amid Court Proceedings

Quantum Global Group on Sunday denounced the intimidating tactics of the Fundo Soberano de Angola (FSDEA), its client, amid a mounting number of legal proceedings in Mauritius and the United Kingdom.

The group reiterated its call for fair proceedings three weeks after a Mauritius court issued the first of a series of restriction orders on Quantum Global Group companies in Mauritius, without disclosing the underlying reasons for the case.

A UK High Court reportedly granted an application by the FSDEA for a worldwide freezing order on several Quantum Global Group companies on Friday. The group has yet to be served the underlying court papers.

Following a change in strategy, the new administration of the FSDEA announced on Friday its intention to remove Quantum Global Group from the management of the private equity funds based in Mauritius. This would breach their long-term contractual agreements.

Quantum Global continues to be dismayed that the FSDEA has resorted to intimidation by launching legal action in multiple jurisdictions rather than seeking a negotiated settlement or arbitration in accordance with the contractual arrangements.

While the reasons for the court actions against Quantum Global have yet to be officially disclosed, there has been a barrage of unfounded allegations against Quantum Global Group in the Mauritius press.

The group has maintained that the court applications are unwarranted because Quantum Global has followed the approved investment policies of the FSDEA and the laws and regulations of every jurisdiction where it operates. The FSDEA has overseen Quantum Global’s investments on a quarterly basis since the inception of the funds and the value of the funds has increased under Quantum Global’s management, according to latest valuations.

Any hasty move to freeze or wind down the FSDEA funds would lead to a significant loss of value of the existing portfolio because many of these projects are in the early phase of development.

The group has further argued it is in the interest of Angola to apply any new strategic direction in good faith and in accordance with international contractual law, to maintain the value to the FSDEA portfolio and secure the jobs already created in Angolan industries including ports, forestry, agriculture and real estate.

As a result of the absence of due process and the rush to sanction Quantum Global, the group has seen its business and the value of the FSDEA funds seriously damaged. The freezing orders have had a real impact on employees, clients, partners and the important investment projects that the group manages across Angola and Africa.

This negative impact has been amplified by the refusal of the Mauritius authorities to release funds required for the continuance of the ordinary course of business, such as the payment of salaries to employees and thousands of African workers indirectly employed by its portfolio companies.

While there has been no update from the FSDEA on the new strategy, Quantum Global looks forward to resolving this situation in an amicable manner.

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