Granahorrar Bank, owned by the Carrizosa family, was unjustly expropriated without compensation over 20 years ago.
Founded in 1972, the Granahorrar became the seventh largest bank in Colombia and provided low-cost mortgages to help thousands of Colombians afford housing.
During the financial crisis in Colombia between 1998 and 2001, many banks were under financial stress. Out of the dozens of banks that required government intervention, Granahorrar was the only bank that was expropriated.
The Carrizosa family sought justice through the Colombian legal system. Colombia’s Council of State, the highest tribunal with jurisdiction over administrative law and commercial matters, ruled in favor of the shareholders. Its ruling was unjustly and illegally revoked by the Constitutional Court in favor of the government agencies.
The Constitutional Court had no authority to comment on the Council of State’s ruling in favor of the shareholders, let alone to nullify it.
The Carrizosas, as U.S. citizens, appealed the various unlawful acts to international tribunals, Permanent Court of Arbitration, International Centre for Settlement of Investment Dispute, and the OAS Inter-American Commission for Human Rights.
“We are confident that our case will be resolved fairly, and the legacy of our father, Julio Carrizosa will be preserved” – Alberto Carrizosa
Julio Carrizosa, a principal shareholder of Granahorrar Bank, began his career renting out his bicycle to make ends meet. He studied engineering but did not complete his studies, opting instead to work full-time. He married Astrida. Together, the couple had three sons, Alberto, Enrique, and Felipe.
In 1985, Julio Carrizosa became a principal shareholder of Granahorrar Bank, which was founded in 1972 and focused on construction. Under his leadership as the major shareholder, Granahorrar became the seventh largest bank in the country.
After Julio Carrizosa’s death in 2018, Alberto, the eldest son, along with his mother and brothers, is leading a fight for justice.
Today, the family has ventures in sectors such as housing construction, energy and telecommunication, gas, and financial technologies, among other industry sectors.
10/19/2020
Alberto Carrizosa featured in El Tiempo
Albero Carrizosa discusses where the status of the family’s arbitration proceedings (Spanish).
Read the article here
07/30/2020
Enrique Carrizosa Interviewed in the Latin America Advisor
Enrique Carrizosa discusses how Latin America can attract more investments and the lessons learned from Granahorrar.
“As the world competes to attract investors, Latin America needs to create a stable regulatory environment for them. According to the World Bank Global Competitiveness report, which interviewed more than 2,400 executives, rule of law is the most important factor for companies’ investment decisions. Effective mechanisms to resolve disputes are a key component of rule of law.”
06/23/2020
Enrique Carrizosa talks about opportunities and challenges to foreign investment in Colombia
Enrique Carrizosa participated in the AmCham Colombia and Canal Uno annual event on foreign investment in Colombia, where he discussed some of the challenges facing investors and his family’s experience with Granahorrar.
03/16/2020
Alberto Carrizosa is interviewed about his family’s fight for justice by Latin Business Daily
“The Granahorrar Bank was expropriated by the Colombian government 20 years ago, but even after owner Julio Carrizosa Mutis’s death in September, his family is continuing to fight for his legacy.
Alberto Carrizosa, Julio Carrizosa’s eldest son and a US citizen, said the legal process began nearly 20 years ago.“
