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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 11:05

Manufacturer of ID-cards Gemalto regrets decision to end out-of-court negotiations

BC, Tallinn, 28.09.2018.Print version
Gemalto AG, the company that used to manufacture electronic ID-cards for Estonia, has expressed its regret at the Estonian Police and Border Guard Board's decision to end out-of-court compromise negotiations and file a court action, informs LETA/BNS.

After the Estonian Police and Border Guard Board's announcement on Thursday, Gemalto wishes to express its surprise at the sudden decision by the Estonian Police and Border Guard Board to break off the negotiation of the settlement agreement, Gemalto said in a press release.

The Estonian Police and Border Guard Board on Wednesday filed a court action by which it seeks a contractual penalty of 152 mln euros from Gemalto AG.


"Gemalto wishes to clarify that it may not be held responsible in any way for this outcome as it has all along been negotiating this amicable settlement agreement in strict confidence and in good faith. It therefore deeply regrets this new approach taken by the Estonian Police and Border Guard Board by filing a claim in court," the press release says.


Gemalto also said that it cannot comment the claim as it only holds for now the information given by the media, but wishes nonetheless to highlight that the amount of the Estonian Police and Border Guard Board claim mentioned in the press release is totally out of proportion compared to the one they offered in the settlement agreement. Gemalto further emphasizes that it has not breached and will continue to perform its contractual obligations.


Gemalto announced that they have demonstrated their clear willingness to fully and finally settle out of court the pending claims related to the e-ID Card supply contract, as it believes that this is in the best interest of both parties.


"By force of circumstance, Gemalto will get prepared for the court case and fully trusts Estonian courts to allocate respective responsibilities of the parties under the said contract and settle the dispute with the Estonian Police and Border Guard Board accordingly; therefore, no further comment will be made for the moment," the company said.


The Estonian Police and Border Guard Board on Wednesday filed a court action by which it seeks a contractual penalty of 152 mln euros from Gemalto.


The action was filed with the Harju County Court in connection with a breach of contract by Gemalto AG that has to do with the generating of electronic ID-card private keys outside the card's chip, which was disclosed in May this year. In the action, the Police and Border Guard Board is seeking a contractual penalty in the amount of 152 mln euros, spokespeople for the Police and Border Guard Board said.

 






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