Evidence mounts of Puntland involvement in the Piracy

[Recovering-Romantics]

Chasing the Somali piracy money trail

 

 

Monday, May 25, 2009

 

Pic from Nato on 2 May 2009 shows detained pirates on Portuguese frigate Corte Real off Somalia a day earlier

Hands up if you want ransom money - but the spoils spread further than pirates

 

Piracy off the coast of Somalia has made many people very rich.

 

A new economy has developed both within Somalia and further afield, as security companies, lawyers and negotiators reap huge profits from their involvement.

 

But finding out what happens to the money delivered as ransom payments is doubly difficult, first because piracy is a transnational crime, and second because Somalia is a country without rules, regulations or a functioning government.

 

There have been various reports that piracy in Somalia is attracting big-time criminals from all over the world; that it is being orchestrated from London; that the ship owners themselves are involved.

 

But little evidence has been provided to back up these claims.

 

It has also been reported that much of the estimated $80m (£50m) paid out in ransoms so far this year has been laundered by organised syndicates in Dubai and other Gulf states.

 

 

US $100 dollar bills

[The hijackers] are often teenagers, who certainly don't end up with all the money

Andrew Mwangura

Seafarers' Assistance Programme

 

But this has been strenuously denied by officials in the Gulf, and people working in maritime intelligence say they have no real proof that the money laundering or any other large scale international crime is happening.

 

"There's been a lot of inventive reporting on very slim evidence," says Christopher Ledger, chairman of the maritime security company Idarat.

 

"What happens to the money is exceedingly opaque, partly because of the way Somalis communicate with each other, and also because of the impenetrable way their finance system works."

 

Established security experts have also suggested that some of those cashing in on the new growth industry of Somali piracy are exaggerating its international criminal dimensions in order to drum up business for themselves.

 

The experts say that with a decreasing demand for private security and intelligence in places like Iraq, some companies and newly-formed "piracy consultants" are trying to sell Somalia as the new frontier for their operations, basing much of their information on speculation rather than fact.

 

In a sense, Somalis do not need to launder the money they make from piracy because their unique financial system operates on trust and honour, bypassing banks and other financial institutions.

 

Verbal transactions

 

As the system - known as "hawala" - often does not involve documentation, with most transactions done verbally, there is no paper trail.

 

This makes it almost impossible to find out what happens to money made from ransom payments or any other transaction in Somalia.

 

The fact that most ransoms are paid in cash means they simply disappear into the Somali community, rather than ending up in banks or other financial bodies.

 

Although hawala companies in the West and the Arab world have become more regulated in recent years, it is very difficult to track the money once it gets to Somalia.

 

It has been possible to find out something about how the ransom money is distributed.

 

One thing is clear: the small groups of pirates who take to sea in speedboats to hijack huge ships do not get all the money.

 

"They are the foot soldiers," says Andrew Mwangura, who heads the East African Seafarers' Assistance Programme and negotiates frequently with pirates.

 

"They are young men, often teenagers, and they certainly don't end up with all the money."

 

'Compensation' scheme

 

Pirates interviewed by the BBC have been reluctant to say exactly how much money they make from a successful hijacking, but reports indicate they make tens of thousands of dollars rather than millions.

 

This is because piracy has developed into a mini-economy, employing hundreds of people in north-eastern and central Somalia, all of whom need their share of the ransom.

 

Although there is no universal set of rules, a UN report based on information gathered from pirates based in the north-eastern village of Eyl, reveals some interesting information about how the ransom spoils are divided:

 

• Maritime militia, pirates involved in actual hijacking - 30%

 

• Ground militia (armed groups who control the territory where the pirates are based) - 10%

 

• Local community (elders and local officials) - 10%

 

• Financier - 20%

 

• Sponsor - 30%

 

The UN report found the payments are shared virtually equally between the maritime militia, although the first pirate to board the ship gets a double share or a vehicle.

 

And compensation is paid to the family of any pirate killed during the operation.

 

The breakdown shows how ransom money trickles down to many sections of Somali society.

 

Government officials and the armed groups that control different parts of the country all get their share too.

 

Yemen link

 

Some analysts - such as the Kenyan-based security consultant Bruno Schiemsky - say pirates have given as much as 50% of their revenue to the Islamist al-Shabab militia in the areas it controls.

 

However, al-Shabab has stated that it opposes piracy.

 

There have been consistent reports that officials in the semi-autonomous region of Puntland - the heartland of Somali piracy - have been getting cuts.

 

Several officials, including a deputy chief of police, have been sacked for involvement in piracy.

 

With so many people receiving a share of the ransom payments - which average between $1m to $3m (£1.9m) - Graeme Gibbon-Brooks, of Dryad Maritime Intelligence, says Somali piracy is unlikely to attract the involvement of major international crime syndicates.

 

"When you look at the way ransoms are distributed, there's simply not enough money for big time gangs to be interested," he says.

 

However, if piracy continues to grow, there's a possibility that it will start to attract major criminal elements.

 

Maritime security expert Christopher Ledger says: "It's similar to the South American drugs trade in the 1970s, which started off as a relatively small-time operation, and grew into a huge global crime."

 

One country that does seem to be involved in Somali piracy is Yemen.

 

Maritime security experts say the 'mother ships' from which pirate attacks are launched are often refuelled, resupplied and even armed in Yemen.

 

A UN report said: "Members of the Harardhere pirate group have been linked to the trafficking of arms from Yemen to (the Somali towns of) Harardhere and Hobyo, which have long been two of the main points of entry for arms shipments destined for armed opposition groups in Somalia and Ethiopia."

 

It's likely that the truth about all the money made from piracy will never be uncovered.

 

What is clear is that several elements in Somali society are benefiting, and that piracy will remain an attractive career option as long as the country remains without central authority.

 

But it is wrong to transfer theories about money laundering and international crime onto Somali piracy.

 

The problem is unique, the country is unique, and speculation will lead to misguided policies which are likely to prolong the dangers facing any ship that sails along the long unruly coast of Somalia.

 

http://news.bbc.co.u k/2/hi/africa/806153 5.stm

[IsseRiyole]

RR, what are you talking about, have you been reading or seeing the News from Somalia lately, Alshabaab is causing another Genocide, and all you have to write for us is Piracy and who is behind. War Puntland ha ku waalan ee shaqo yeelo,ka soco meesha.

[Thankful]

Although there is no universal set of rules, a UN report based on information gathered from pirates based in the north-eastern village of Eyl, reveals some interesting information about how the ransom spoils are divided:

 

• Ground militia (armed groups who control the territory where the pirates are based) - 10%

 

• Local community (elders and local officials) - 10%

 

Where's Mr. Ghelle T??

 

He accuses me of attacking a province of Nugaal when I am just taking evidence from independant sources, Ground militia ( armed groups who control the territory where the pirates are based) - 10%."

 

I am not basing my facts on Somali sites run by the opposition. I am just saying Piracy is flourishing in one spot.

 

However Reer Eyl and it's elders have started discussing the problems Piracy is bringing to the state and have agreed to follow all the other provinces in the state and not allow these guys to set up a base. 200 pirates have renounced piracy, which is a start.

 

BBC

 

Horseednet

 

PuntlandPost.com

[Peace Action]

Where's Mr. Ghelle T?? He believes it was Cade admin that brought the piracy but everyone knows who are the pirates and the epic center is Eyl. It is upto to Faroole to shut it down before it brings him down.

[Thankful]

I know, if you want to bash the former admin you have every right to, but piracy is a global issue, the biggest one Puntland has faced. Our Public image has been hurt, but the fact is that it isn't the whole state that allows these criminals to set up a base. It was easy to point fingers at the former admin for everything it did, but what about now?

[Che -Guevara]

Judging from the way people are talking, it would seem like Eyl does not fall under Puntland jurisdiction and that somehow the former administration enjoyed no authority of this part of the state. If Cadde was just an administrator for Bari region, then he bears no blame in this debacle, but if he was the leader of the Puntland government as many could agree including his fervent supporters, then the buck stops at the top. Whether he was responsible, aware, or even ignorant of piracy issue is beside the point. Whether the opposition, or particular qabiil initiated, benefited, or tolerated piracy is also beside the point. It is the privilege or burden of leader to know the happenings, the in and outs, or the every pin that drops making the least noise. It is his responsibility to look after the welfare of the state and people, and protect it from detractors both foreign and domestic. He might not have known or benefitted from piracy, but it's under noes that piracy came to flourish and took root in the psyche of people. One can not credit the Cadde administration for everything that went right during his reign and then shift the blame to others for everything else that went wrong. If he was governer of Bari, then a job well done, but if he was leader of Puntland, he bears the highest blame for allowing piracy to take root.

 

You can't have your cake, and eat it too my friends. Pick one, and stick with instead of rewriting his history, or re-branding this man's bruised image.

[Thankful]

When Puntland was formed, their were elders and influential leaders brought from every corner of the state that agreed to try and work together under an administration made up of members of each province who would elect a leader and government. Each province agreed to take care of it's own security and work together with each other. That meant supplying soldiers in times of emergencies and sharing resources. Although the government would help distribute everything and organize different agencies, i.e taxes at the port and what not, it was the responsible of every tribe to ensure that they kept their end of the bargin. It is no secret that the parliament is made up of a certain number of individuals from each tribe who would choose a leader and that the government that was formed would make sure the ministers had equal representation of tribes. After the civil war every tribe broke up and acquired a large amount of weapons to defend their lands. Puntland was formed to bring organization to the chaos that ensued. So unlike other governments in the world, the weapons that the government has are the exact same as those that the tribes have. Technicals, PKM's, RPGS and so on. The government doesn't have fighter jets or other sophisticated weapons. So it must depend on help to protect the state from the different tribes and their forces. There's an understand that each province through elders, religious leaders and other respected people would ensure they would take care of their area's and send Representatives to work with the government i.e ministers, parliamentarians. For instance when the war in 2006 came to the gates of Gaalkayo, every tribe contributed a certain amount of fighters and weapons to the cause. This is why right now in Eyl, elders of that area are taking part in the discussions. Also if you remember there was a dispute in Bari between two tribes, 2 or 3 months ago over land. It had nothing to do with the government and even though many people died, the two groups settled the issue through negotiation between them selves with help from elders, the government didn't swoop in and make a bunch of arrests.

 

 

So my point in all this is that the provinces and those that inhabit it have an understanding that they will work with the government. Because at the end of the day they are the ones that control their land and if they are allowing pirates to set up base in their province they are not holding up to their end of the agreement they signed in 1998.

 

President Faroole attack on Parliament 2006

 

This is Garoweonlines interpretation of the incident, which is run by President Farooles son.

 

Attack-Garoweonline

 

Doesn’t Garoe have a police force responsible for security? Indeed, the Puntland capital has its own police force, which is capable of handling all security threats. Then, one must ask the impending question: What was the reason for sending in the presidential guard instead of the police force? Furthermore, why was the administration so quick to use guns instead of diplomacy? The bloody incident in the central Garoe exposed a weak administration and its lack of proper procedural protocol. When armed militiamen captured Parliament House, it was the duty of the police to engage the militias, not for the presidential guard to interfere. The militiamen, while armed, neither shot nor killed anyone but were there to express their grievance against the injustice incurred upon “some” ministers, while others are given the green light. Puntland prides itself as a region where law and order reign supreme; yet, the president’s personal security forces were quick to break the law. Because of poor judgement on the part of the administration, several families lost their loved ones.

 

Also, the people of Garoe have guns and could’ve responded violently against the presidential guard’s murderous tactics. But, as with the whole of Puntland, the mediation and wisdom of the Issims, or traditional elders, was given priority. As the Issims of Nugal region calmed the tense and potentially volatile situation in the Capital, the president called in more heavily-armed reinforcements to encamp himself in a “Green Zone” not unlike the American one in Baghdad! Why did the president reinforce his personal security forces if he’s not guilty of anything? What does he have to fear today that he didn’t have to fear the day before the bloody gun battle in Garoe?

 

 

 

Just like Garoweonline said, everyone has weapons and can take on the government. A base can't be set up in far off Eyl, Nugaal and then say oh it's the governments fault it is happening. THE GOVERNMENT DOESN'T NOT CONTROL EVERY INCH AND CAN NOT FUNCTION WITHOUT THE HELP OF THE INHABITANTS OF EACH PROVINCE. It is the responsiblity of each province to protect their land. In Bari:

 

Bari residence fight

It's not the government but local fishermen in the area as this article show's".

 

Already the militia has arrested 12 pirates in two boats and handed them over to the local authorities in the northern Somali region of Puntland.

 

 

Bari Fight - BBC

And here it is "Regional leaders"

 

Regional leaders at Alula and Bargaal in Somalia's northern Puntland region told the BBC they have put together a militia of fishermen to catch pirates.

 

 

As you see it is the responsibilty of the locals to deal with the Piracy issue and in the case of Nugaal - the Issims.

 

Something that they are not doing.

[Recovering-Romantics]

Originally posted by IsseRiyole:

RR, what are you talking about, have you been reading or seeing the News from Somalia lately, Alshabaab is causing another Genocide, and all you have to write for us is Piracy and who is behind. War Puntland ha ku waalan ee shaqo yeelo,ka soco meesha.

I am just reporting the news bro. Piracy is an important in threat that poses dangers to not only Somalia and the region but also to International Commerce.

 

We should fight this menace before it is too late.

[Recovering-Romantics]

Originally posted by Peace Action:

Where's Mr. Ghelle T?? He believes it was Cade admin that brought the piracy but everyone knows who are the pirates and the epic center is Eyl. It is upto to Faroole to shut it down before it brings him down.

Faroole's campaign was financed through Piracy money. Unless something is done against the individuals in the higher-ups in the Puntland administration, piracy will continue to wreck havoc on International Trade and Commerce.

[Recovering-Romantics]

INTERVIEW-Somali pirate fears good times maybe finished

 

EYL, Somalia, May 26 (Reuters) - Driving a luxury 4x4 car and smoking imported cigarettes with an expensive satellite phone at his side, Mohamed Said fears his flashy lifestyle as a Somali pirate could be about to come to an end.

 

The 35-year-old has no regrets about joining one of the gangs operating out of the pirate lair of Eyl, a former fishing village that overlooks the Indian Ocean and the strategic shipping lanes linking Europe to Asia through the Gulf of Aden.

 

Their attacks have driven up insurance costs and delayed U.N. aid deliveries. But Said's career has brought him riches he could never have imagined as an impoverished fisherman.

 

He and his colleagues have hijacked nearly 30 vessels this year, meaning 2009 is on course to be even worse than last year, when pirates from the Horn of Africa nation seized 42 ships.

 

But the crime wave has prompted a hurried deployment in the region by foreign navies, thwarting several attacks -- and now the weather is turning too, making the seas rougher and the pirates' prey harder to hunt.

 

"My biggest fear is that the piracy business will have to stop. The weather will be terrible in the coming days and the warships have increased in number," Said told Reuters in Eyl.

 

"I have experienced the bitter-sweetness of piracy," he added, pointing out that his car, satellite telephone and speedboat were all paid for with his cut from ransoms.

 

But the last few weeks have not been so successful. He knows he was lucky to get off scot-free after being captured once.

 

"I recently went to sea ... but all of my last three attempts have been in vain. I was even caught by a Portuguese warship, but fortunately they released me and my friends."

 

THREAT FROM WARSHIPS

 

NATO forces have been disarming and releasing gunmen detained during its anti-piracy operation. Said is well aware that if it had been a different warship, he might well be dead, or facing trial in a courtroom far from home.

 

Last week, a Somali teenager accused of holding a U.S. ship's captain hostage during a foiled hijacking denied 10 charges in New York including piracy and kidnapping. [iD:nN21495425]

 

Abduwali Abdukhadir Muse was the sole surviving accused pirate after the U.S. military said its snipers shot dead three of his companions during an operation to rescue the captain.

 

Even after the weather improves, Said worries that the foreign navies might make the pirates' business impossible.

 

"If dozens of warships remain in our waters, our work will be as futile as a chameleon trying to catch a fly," he said.

 

Lighting an imported Benson & Hedges cigarette and unwrapping a roll of leafy khat, a mild narcotic popular in the Horn of Africa, he says he is holding out for his share in a $1.7 million ransom being demanded for a hijacked German ship.

 

At small cafes on Eyl's dusty, unpaved streets, pirates are also swapping gossip about negotiations in progress for the release of a Dutch ship. The buccaneers want $2.5 million, but the owners have only offered $1.5 million so far.

 

"If they give me some cash I will clear my debts. You know khat is expensive here," he said, chewing on a twig from the bunch wrapped in banana leaves, then puffing on his cigarette.

 

"Those who have must enjoy their earnings, while the have-nots die of hunger and worry," Said added with a shrug.

 

"I wish this merry life would last forever. But I'm afraid that circumstances may force me to give up piracy completely."

 

Source: Reuters, May 26, 2009

[Che -Guevara]

Somalipride..I understand where you are coming, but don't you think the state should at very least have registered their concern with the leaders in Eyl, and I'm making the assumption Cadde admin never did that since I never heard Cadde engaging the elders, politcians, and religious figures from that region?

[Gheelle.T]

Che, well said bro. For some odd reasons, people here think/believe Adde muse had no jurisdictions over Eyl/Nugal, Laascaanood, Garowe, and Galkacyo. Or they will go miles and make 1000s of excuses of why things went bad. War heedhe let it go, Adde was a failure and incompetent. Had there any other leader in those 4 and half years he was in power, piracy wouldn't had flourished the way it did, and certainly security wouldn't deteriorated they way it did under his watch. Not to mention money printing and corruption.

 

Why are you guys try to make like if those pirates hijack ships off the coast of Eyl, when the bulk of hijackings happen off the gulf of Aden/red sea. Why wouldn't he stop them there if he couldn't go to Eyl?

 

One more thing, why didn't he do anything about human trafficking? Ooh I forgot, he was inept handling that because it was happening 5 miles outside of Bosaaso. So of course blame the elders there..How ever bad piracy is or where they have a base, you can't sugarcoat Adeer Adde's inability to deal with any of those issues.

[Thankful]

Gheelle. T,

 

Like I said you can have your opinion with on Gen. Cade. But no matter what, you know and I know you are silent and refuse to answer why Mohamed Abdirahman Faroole the presidents son is able to make phone calls to is connections and arrange a meeting with one of the most well-known and successful pirate leaders so a western journalist can interview him. This isn't a Somali site writing this but the times.UK that said it. It clear said that the presidents son wanted the meeting to take place outside of Garowe so he wouldn't be seen in public with pirates. THIS IS MY WHOLE POINT, YOU WANT TO BASH THE FORMER ADMIN, BUT WHEN NEWS LIKE THIS COMES OUT YOU TURN A BLIND EYE. You know no matter what you can not justify his actions and they are extremely incriminating. Can you imagine lets say the President of Mexico's son taking a foreign reporter to meet a drug leader and act as an interpreter? What do you have to say about what he did? You say piracy was inherited by the previous admin, can you comment on this?

 

Eyl is the most prospers base in all of Somalia, Human Trafficking and everything occurs everywhere on the coast, people are told meet here and we will depart, it's impossible to stop, the U.S can't stop people coming into their country and they have a smaller border with Mexico then are huge coast, there is no way we can stop people leaving. We need to improve the quality of life so people won't take the journey. I agree Piracy involves Somalis from every corner and attacks have occurred mostly in the Gulf of Aden. However, the majority of ships are docked at the Coast of Eyl and that town is the headquarters. That is why the Pirate meeting and the 200 pirates who renounced the crime held the meeting in Eyl it's not taking place anywhere else, because this is the Pirates base and a SAFE haven. Believe me many people are poor in Puntland just like the rest of Africa and piracy is a big money business but you still don't see dozens of bases popping up all over.

 

My point in all this is that you cannot blame any Admin if the inhabitants of a province allow Pirates to set up a base in their land. If they are willing to give them sanctuary then they hold the responsibility.

 

 

I'm making the assumption Cadde admin never did that since I never heard Cadde engaging the elders, politicians, and religious figures from that region?

I am not sure exactly what took place behind closed doors, in 2008 when their was the spike in piracy attack, it was also an election year so many people were occupied with other priorities. But I can not say for certain.

 

 

I'll say this one last time, I am not against reer Nugaal or saying everyone their is responsible for piracy. But if you started pointing fingers at who is responsible for piracy, and in my opinion those that are enabling them to set up a base must be looked at. But you are not, you are just blaming the previous admin!

[Mintid Farayar]

The children are finally waking up....

[Gheelle.T]

Somalipride, bro I don't know and don't care why ina faroole met with pirate. I don't really know whether he is involve in it or not. That's beside the point. I can see you are trying to connect him and his father in this pirate business and that is fine with me. What I don't understand is the denial on your part that piracy was never an issue under the rule of Adde and the fact that piracy flourished on his watch. Adde himself said it loud on the radio waves that they (his admin) can't stop the piracy and that some people in his own government were part of it.

 

The funny thing is that you are blaming the local inhabitants for all the short comings of Adde's admin. War ninkaa ha na daba wadin naga daa ninyahow. I thought we have buried this thing and agreed to disagree and here you are dragging me back just to vindicated your old man.