BRATISLAVA, January 20, (WEBNOVINY) — Slovakia has paid more than EUR 15.5 million to law offices that represent the country in the dispute with private health insurers over the restricted use of profit, informed the Finance Ministry without elaborating. The Slovak Republic has been involved in three arbitration processes with foreign stockholders of the health insurers Union, Dovera and Apollo. The Finance Ministry cannot comment on the further steps in detail because arbitration processes are strictly confidential due to arbitration rules and instructions issued by arbitration panels, explains ministerial spokesperson Martin Jaros.
The development of individual disputes is in various stages, informed the ministry. The arbitration involving Union is in the so-called merit stage, in which a decision will be made whether Slovakia had violated its commitments arising from its investment agreement with the Netherlands. If the arbitration tribunal confirms wrongdoing on Slovakia’s side, then the volume of damage will be determined. Arbitration process with Dovera’s stockholder is the jurisdiction phase when the panel will define whether it is authorized to deal with the dispute and the arbitration process with Apollo’s shareholder has reached early jurisdiction phase.
Law offices KSD Stovicek and Rowan Legal represent Slovakia in the dispute with Eureko, stockholder of Union; Skadden, Arps, Slate, Meagher & Flom (Europe) LLP in arbitration with the Dutch company Health Insurance Companies of Eastern Europe (HICEE), owner of Dovera; and David A. Pawlak LLC and Foley Hoag LLP have been acting on behalf of Slovakia in dispute with European American Investment Bank (Euram), which acquired shares in Apollo through its Slovak affiliation E.I.C. in 2007.
The Finance Ministry is thoroughly analyzing the arbitration processes and seeks ways to help meet the pledges of this government. Health Minister Ivan Uhliarik has been providing intensive cooperation to the department for finance in this issue. However he was not bale to specify when and how the respective legislation will be amended.
The law that limits the options for health insurers to use the profits they generate and orders them to return the money to the health sector was enacted by the former government of Robert Fico. The law has ended up at the Constitutional Court, and Speaker of the Parliament entrusted the former prime minister with representing the parliament in the hearing scheduled for January 26 but Fico refused.
SITA