SuperCom fails to thwart the payment of bank guarantees

The SuperCom company, a supplier to the Electronic monitoring system for the Czech justice through the Probation and Mediation Service, failed with a proposal against the Czech Republic to thwart the payment of the bank guarantees. The former electronic monitoring supplier tried to impose a ban on the payment of the bank guarantees in the Czech and Israeli courts. The Israeli court rejected the proposal of the SuperCom company mainly because the Israeli courts have no authority to impose the ban.

On 19 May 2022, the District Court in Tel Aviv decided to reject a motion for interlocutory injunction through which the SuperCom company demanded to impose the ban on the payment of the bank guarantees provided by the Israeli bank in favour of the Czech Probation and Mediation Service in the amount of 15 million CZK. The bank guarantees were issued to secure the compliance with sanctions which the Probation and Mediation Service applies for serious breaches of contract for the electronic monitoring system. The breaches of contract by SuperCom repeatedly jeopardized functionality of the electronic bracelets which were used to check on the movement of convicted or prosecuted persons.

SuperCom has exhausted all possibilities to try to prevent the payment of the bank guarantees which were paid by the bank to the Probation and Mediation Service. The bank guarantees will be used to partially pay the sanctions claimed under the contract for the supply of electronic bracelets. The Probation and Mediation Service will enforce the remaining part of the claim for penalties for breach of contract against SuperCom through court proceedings.

Mr. Martin Bačkovský
Press Secretary
Mob. 731 637 890