In a statement sent to the Portuguese Securities Market Commission (CMVM) on Tuesday evening, CTT announced that, "following the statement of October 1, 2023, they were notified of the decision of the Supreme Administrative Court to revoke the ruling issued by the Arbitral Tribunal, which, unanimously, had ordered the State to pay CTT" a total of 23.5 million euros.

That is, "6,785,781 euros as compensation for damages resulting from the effects of the COVID-19 pandemic and 16,769,864 euros for the unilateral extension of the Concession Contract in 2021".

This decision, "approved by a panel of three judges, had a dissenting vote regarding the part" referring to the amount to be paid as compensation for damages resulting from the effects of the COVID-19 pandemic, the Post Office said.

In another statement, the company led by João Bento states that "it was with great surprise that CTT was informed of the decision of the Supreme Administrative Court, which revokes the ruling of September 2023 of the Arbitral Tribunal which, unanimously, ordered the State to pay CTT the global amount of 23,555,645 euros, as compensation for the effects of the pandemic on the operation of the Universal Postal Service and to restore the financial balance of the contract for the year 2021".

On June 11, 2021, "following several contacts with the Government, CTT, following its instructions, resorted to arbitration to exercise its right to compensation", the Post Office reports.

"A complex process followed, with a very detailed analysis of evidence that allowed CTT to prove its allegations successfully: on September 27, 2023, the Arbitral Tribunal ruled in favor of CTT, in a unanimous, balanced and well-founded decision from the point of view of facts and law", they continue.

Correios de Portugal states that, "regarding the impact of the COVID-19 pandemic, the Court ordered the State to pay CTT the amount of 6,785,781 euros, determined according to judgments of equity and which corresponds to the amount necessary to cover the 'damages actually suffered by CTT' in 2020, considering that the pandemic constitutes an abnormal change in circumstances that had a negative impact on the execution of the Concession Contract, that is, recognizing CTT's right to be compensated for the damage actually suffered according to the audited accounts".

Regarding the unilateral extension of the Concession Contract, "the Court ordered the State to pay 16,769,864 euros to restore the financial balance of the 2021 contract".

In view of this, "CTT deeply regrets this decision of the Supreme Administrative Court, noting that it was issued in less than four months".

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