Government Says It Has Rescinded Concession to Run
Africa's Largest Port
By
ASA FITCH
DUBAI—The government of Djibouti has filed an arbitration case in London against Dubai's DP World, DPW.NDB +0.50% alleging the global ports operator paid bribes to secure a concession to run the Doraleh Container Terminal in 2000.
The Djibouti government said in an emailed statement that it rescinded DP World's 20-year concession and launched the case before the London Court of International Arbitration after out-of-court negotiations broke down.
DP World rejected the allegations, saying in a statement that it was "disappointed" in the government's decision to take legal action after 14 years of cooperation on the development and operation of the port, which opened in 2008.
The port is Africa's largest container terminal and Djibouti's biggest employer.
DP World, which operates more than 65 ports around the world, mostly in emerging markets, said it would continue to manage the Doraleh terminal pending the arbitration decision.
"We reject the allegations made and will vigorously defend our position during the arbitration procedure," DP World said.
Djibouti said the case sprang from an investigation of Abdourahman Boreh, the former chairman of the Djibouti Ports and Free Zones Authority.
The government has launched numerous legal actions against the Dubai-based Mr. Boreh in recent years and obtained a global freezing order on his assets.
The government has alleged that he misused his government position to gain personal advantage. One major case is scheduled to go to trial in London next year.
Mr. Boreh couldn't be reached for comment, but has previously denied allegations against him.
Djibouti claimed in its statement that it uncovered evidence "indicating that DP World paid bribes and gave other financial incentives to Mr. Boreh while he was negotiating the Doraleh Container Terminal concession agreement with DP World, as well as afterwards."
The bribes, the Djibouti government alleged, were made through consultancy agreements and foreign shell companies.
"Although the government of Djibouti sought to resolve the matter through direct discussions, negotiations have now broken down, leaving Djibouti with no choice but to request arbitration to declare the concession agreement and related project documents rescinded for illegality and corruption," the government's statement said.
No comments:
Post a Comment