ST Group and the Silence of Injustice — When the Trust of Local Investors Goes Unheard by the ICC Tribunal in Macau

In the realm of business cooperation, trust is a fundamental cornerstone. In the sphere of international business, filled with hope for collaboration and mutual benefit, ST Group was a local investor that welcomed its foreign partner, Sanum, with trust and an aspiration to jointly build a sustainable economic future. Yet the outcome was a deep disappointment. Sanum’s conduct was accepted and overlooked by a mechanism that should have served as the final safeguard of justice — the ICC Tribunal in Macau.

When Dishonesty Is Overlooked in the Judgment and Treated Merely as ‘Inconsistent Conduct’

The arbitral tribunal acknowledged that Sanum had engaged in negotiations for several casino projects without informing ST, despite a contractual clause requiring Sanum to offer ST the right of first participation. This was not a mere oversight; it was a deliberate act to seize opportunities and gain advantages by denying ST access to information and benefits. However, the tribunal viewed these actions as merely ‘preliminary steps’ and did not consider them a contractual breach.

It is evident that although the tribunal acknowledged that such conduct was ‘inconsistent with the spirit of cooperation,’ it did not deem it a fundamental breach. While this reasoning may appear legally sound, in reality, it reflects a disregard for the silent erosion of trust and dignity experienced by the local investor.

ST’s Voice Was Not Loud Enough in an Uneven Playing Field

ST is not a multinational corporation. It lacked the influence to negotiate on the international stage. What ST possessed was a belief in a system that ought to be just and a full commitment to protecting its own rights.

ST’s reference to rulings from PCA and ICSID to support its claims was dismissed solely on the basis that ST was not a direct party in those cases, despite those rulings clearly identifying Sanum’s bad faith conduct.

Such rigid adherence to narrow legal frameworks, while ignoring the pattern of repeated misconduct, risks reducing the ICC arbitration process in Macau to a mere technical dispute forum — rather than a true forum for justice.

ST Was Abandoned in the Silence of the Law

Even though ST claimed that Sanum had concealed financial records, evaded audits, and undermined mutual trust, the tribunal maintained that ‘no contractual provision’ supported ST’s right in this regard — and thus, no breach could be found.

A more pressing question arises: when contractual systems are designed with unequal power, what recourse remains for local investors to protect themselves?

Echoes of the Powerless

ST has become a symbol of local investors forced to rely on international justice systems without bargaining power, unable to access substantive fairness — even when armed with facts — as the arbitral decision-makers rely strictly on contract language rather than contextual conduct and ethical considerations.

If even concealment of projects, evasion of audits, and erosion of trust are not enough to be heard by the ICC Tribunal in Macau — then where can local investors place their hope?

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