Sharjah Electricity and Water Authority (SEWA), a government owned utility in the United Arab Emirates (UAE), is being sued for 2.7bn dirham ($735m) by an oil supplier, according to the Financial Times.
Fal Oil is suing SEWA, owned by the government of the emirate of Sharjah, for unpaid bills. But the family owned oil company faces a counter suit from SEWA for billing incorrect quantities of fuel.
Fal Oil’s legal pursuit of SEWA is seen as unusual in the UAE, where firms are likely to avoid court cases that could jeopardise future business. But governments in the country’s seven emirates are reported to be paying less promptly since the UAE’s economic downturn.
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