The Malagasy State has agreed to compensate the company Polo Garments Mahajanga (PGM). This decision, announced by Colonel Randrianirina, could significantly help warm up bilateral relations with Belgium.
A compromise has finally been reached regarding the compensation for investors of PGM, a former Belgian textile and clothing company. According to the Head of State, the government has committed to paying the financial compensation owed to the firm.
This announcement was made by the President upon his return from a trip to Europe. He noted that this issue was among the main topics discussed with Belgian Prime Minister Bart De Wever during their meeting in Brussels on Thursday afternoon.
The PGM case dates back to the political events of 2009. The textile factory was among the sites ransacked during the looting on January 27 and 28, 2009, in Mahajanga. The owners initially sought compensation from their insurer, which was refused, leading to a legal battle that eventually reached an international level.
In April 2020, PGM won its case before the International Centre for Settlement of Investment Disputes (ICSID), an arbitration body linked to the World Bank. Madagascar was ordered to pay approximately $6.5 million in damages, plus interest. Although the State attempted to annul the ruling, the request was rejected in 2022. Colonel Randrianirina stated that with accumulated interest, the total amount reached nearly $13 million.
The delegation led by the President in Brussels successfully negotiated a reduction of the bill to $11 million. The President now asserts that this dispute is “entirely resolved.”
According to informed sources, this long-standing dispute had led Belgian authorities to suspend the accreditation of Rivo Rakotovao, former President of the Senate, as Madagascar’s ambassador to Belgium. His official appointment, confirmed on Saturday during the Council of Ministers, signals the end of the crisis and demonstrates that the Malagasy State is a trustworthy partner.
Captured & Published at: 2026-09-14 05:53:48 (Madagascar Local Time EAT)
Original Source: https://www.lexpress.mg/2026/09/pillages-de-2009-letat-accepte.html
