The money trail

The two Balkan tranche invoices total £442,400, but their descriptions do not mathematically match 30% and 70% of that total: the exact figures would be £132,720 and £309,680. The amended joint instructions use £309,680 for the second tranche. This £20/£20 allocation anomaly does not itself prove wrongdoing, but it should be explained and reconciled.

The original release bargain

Clause 3.1 of the Escrow Agreement made the releases conditional. The first 30% was to be released upon evidence that the issuing bank transmitted an MT799, or substitute MT998, in favour of Kopa’s advising bank. The remaining 70% was to follow evidence that the issuing bank transmitted an MT760 evidencing full issuance. If either condition was not fulfilled, the agreement said the escrow funds were to be returned in their entirety, less applicable transfer fees.

The escrow agent could rely in good faith on a document that appeared authentic on its face, absent gross negligence or wilful misconduct. That clause may protect the escrow agent in some circumstances; it does not answer whether Balkan was entitled to present a document as valid evidence or to retain the fee if the supposed transmission did not occur.