The Gambia Overturns US$33.2 Million Award in Major Victory Over Pirang Shrimp Farm Dispute

Written by: Seringe S.T. Touray

The Gambia has secured a major legal victory after overturning a US$33.2 million (over D2 billion) award that would have required the government to compensate foreign investors whose shrimp farm in Pirang was taken over by the state in 2015 under former President Yahya Jammeh’s administration.

Speaking on GRTS earlier this week, Attorney General and Minister of Justice Dawda A. Jallow said a committee of the International Centre for Settlement of Investment Disputes (ICSID) annulled the award after finding that the original tribunal failed to provide sufficient reasons to justify why it had the authority to hear the case.

AG Jallow explained that the dispute began after the Jammeh administration took over the shrimp farm, formerly known as Scan Gambia before it was renamed West Africa Aquaculture. He said efforts to negotiate compensation failed, prompting the investors to take The Gambia before an ICSID tribunal in Paris.

According to AG Jallow, the tribunal ruled against The Gambia in March 2024, finding that the takeover of the investment was unlawful and ordering the country to pay damages, interest and other costs amounting to about US$33.2 million.

“I briefed Cabinet… and I was able to show Cabinet various options available to government,” AG Jallow said. “We thank President Barrow. He did not hesitate… He took a decision that since it is my opinion as the Attorney General that we have good grounds to challenge that decision, he instructed that we take the risk and challenge the decision.”

He said the government assembled a legal team that included Gambian lawyer Edie File, who practises in California, together with the London-based law firm Omnia Strategy, to seek an annulment of the award.

AG Jallow said the application was based on two principal grounds: that the original tribunal had exceeded its powers and that it had failed to provide adequate reasons for its findings. He said the annulment committee agreed with the second ground and found it unnecessary to consider the first.

“The tribunal that gave the decision did not provide reasons or convincing reasons as to why they assumed jurisdiction,” AG Jallow said. “We believe the tribunal did not have jurisdiction to even hear the matter, talk less of even determining it and awarding against us.”

He explained that The Gambia’s position was that amendments made to the country’s investment law removed its automatic acceptance of ICSID jurisdiction and that there was no investment treaty or written agreement with the investors requiring the dispute to be heard before the tribunal.

Describing the outcome as highly significant, AG Jallow said the ruling had protected the country’s finances from a substantial liability.

“If we had lost… that is quite a lot of money,” he said. “We have saved The Gambia in excess of D2 billion.”

Asked whether the investors could challenge the latest decision, AG Jallow replied: “No. This one is final.”

He added that governments often inherit legal disputes from previous administrations and disclosed that The Gambia is still defending several cases, both locally and internationally, arising from decisions taken under the former government.