Djibouti Files Arbitration Against DP World Over Alleged Corruption in Port Deal

Government Says It Has Rescinded Concession to Run Africa's Largest Port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The Djibouti government said in an emailed statement that it rescinded DP World's 20-year concession and launched the case before the London Court of International Arbitration after out-of-court negotiations broke down.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Djibouti with no choice but to request arbitration to declare the concession agreement and related project documents rescinded for illegality and corruption," the government's statement said.

Write to Asa Fitch at asa.fitch@wsj.com

 

Orange co-financing Sea-Me-We 5 cable connecting through Djibouti, Egypt

Construction of a high-speed submarine cable connecting France to Singapore via Djibouti and Egypt in Africa will be co-financed by telecoms giant Orange.

The 20,000 km Sea-Me-We 5, which stands for South East Asia-Middle East-Western Europe 5, is planned to connect Singapore, Indonesia, Malaysia, Thailand, Myanmar, Bangladesh, Sri-Lanka, India, Pakistan, Oman, the United Arab Emirates, Yemen, Djibouti, Saudi Arabia, Egypt, Italy and France.

Orange is a member of an international consortium building the network, which is expected to come online at the end of 2016.

Development of Sea-Me-We 5 also follows on from the establishment of Sea-Me-We 3 in 1999, Sea-Me-We 4 in 2005 and IMeWe in 2010.

Orange co-owns these three other submarine cables as well.

“In addition to providing extra capacity, the Sea-Me-We 5 cable provides Orange with an alternative route that guarantees the protection of voice and data traffic passing through the other cables in the area,” said Orange in a press statement released last week.

“Moreover, thanks to the inter-connection point in Djibouti, Orange can open up a new route towards the Indian Ocean to support the booming growth of broadband services in the islands of Reunion and Mayotte,” said Orange.

The Sea-Me-We 5 cable design is based on 100 Gbps technology and is expected to offer a capacity of 24 Tbps, according to Orange.

Orange’s move to co-finance Sea-Me-We 5 also follows on the French telecom operator’s announcement last week that it has opened West Africa’s first large-capacity internet protocol (IP) Point of Presence (PoP) in Abidjan, Ivory Coast.

Orange is also part of a consortium that has built the $700 million Africa Coast to Europe (ACE) submarine cable, which links Europe to Africa’s West Coast.

Djibouti strongly condemns Armenia`s aggression against Azerbaijan

 

Baku The Ministry of Foreign Affairs and International Cooperation of Djibouti has released a statement strongly condemning Armenia`s aggression against Azerbaijan.

In the statement, the Government of Djibouti says it considers the actions perpetrated against civilian Azerbaijani population in the occupied Azerbaijani territories as “crimes against humanity”,APA reports quoting AzerTag.

Recalling the resolutions of the Organization of Islamic Conference (OIC), the United NationsGeneral Assembly and Security Council, the statement “strongly condemns any looting and destruction of the archeological, cultural and religious monuments in the occupied territories of Azerbaijan”.

It strongly demands “the strict implementation of the United Nations Security Council resolutions 8221853,874 and,884 as well as the United Nations General Assembly resolution NRESl62l243, and the immediate, unconditional and complete withdrawal of Armenian forces from all occupied Azerbaijani territories including the Nagorno-Karabakh region and strongly urges Armenia

to respect the sovereignty and territorial integrity of the Republic of Azerbaijan”.

Djibouti`s Government also calls for a just and peaceful settlement of the conflict between Armenia and Azerbaijan on the basis of respect for the principles of territorial integrity of states and inviolability of internationally recognized borders.

Judges grant secret court hearings

Justice Secretary Chris Grayling said five applications had been made by the Government for evidence to be heard in secret courts over the past year

Secret court hearings were granted by judges to the Government in at least three of its five attempts to secure them during the first year of controversial new laws being in place.

Ministers' applications for closed material proceedings (CMP) - allowing evidence to be heard in private - were accepted in cases involving an IRA mole suing MI5, terror suspects alleging British complicity in their torture in Somaliland, and Iranian shipping officials who were listed as having their assets frozen due to suspected involvement in nuclear proliferation activity.

Under the Justice and Security Act 2013, powers were granted for judges to grant secret hearings for evidence that may jeopardise national security if heard in public.

Justice Secretary Chris Grayling announced that between June 25 2013, when the powers came into force, and June 24 this year, ministers made five applications for CMP.

In the same period, a decision whether to grant one of the applications was made in secret, while another application - involving British terror suspects Mohammed Ahmed Mohamed and a man known only as CF - was granted publicly.

Since June 24, judges have granted permission for secret hearings in two of the other cases.

On July 8, Home Secretary Theresa May won a top judge's permission to use secret court hearings to defend a damages claim brought by IRA mole Martin McGartland.

Mr McGartland is suing MI5 for breach of contract and negligence in his aftercare following a shooting by the IRA which left him unable to work.

A former agent of the Royal Ulster Constabulary Special Branch, Mr McGartland claims the security services failed to provide care for post-traumatic stress disorder and access to disability benefits.

Mr Justice Mitting said "sensitive material" relating to protection and the training of security service "handlers" arose in the case and that secret hearings could be used in the interests of national security.

On July 11, court documents show the Government was granted secret hearings in a case involving members of the Islamic Republic of Iran Shipping Lines, who are seeking damages from the Foreign Office for loss of earnings after being included on a frozen assets list for their alleged involvement in "proliferation-sensitive nuclear activities and the development of nuclear weapon delivery systems".

Source: belfasttelegraph.co.uk