Developing: Djibouti throws DP World out - cancels its contract

[Holac]

DJIBOUTI, (Reuters) - Djibouti has ended a contract with Dubai’s DP World, one of the world’s biggest port operators, to run its Doraleh Container Terminal, the president’s office said on Thursday.

“The Republic of Djibouti has decided to proceed with the unilateral termination with immediate effect of the concession contract awarded to DP World,” the office of President Ismail Omar Guelleh said in a statement.

A DP World spokesman declined to comment.

Last February, the London Court of International Arbitration cleared DP World of all charges of misconduct over a concession to operate the terminal, Dubai’s government said at the time.

 

In 2014, the government of Djibouti lodged claims accusing DP World, majority-owned by the Dubai government, of illegal payments to secure a 50-year concession for the Doraleh Container Terminal, the Dubai government said.

The president’s office said the contract was ended after the failure to resolve a long-running dispute between the two parties that started in 2012.

It gave no other details on the nature of the dispute, but said it took the decision to protect its “national sovereignty and economic independence.”

“It should be noted that the Doraleh Container Terminal (DCT) will now be under the authority of the Doraleh Container Terminal Management Company which is fully owned by the government,” the statement said. 

(Reporting by Abdourahim Arteh; Additional reporting by Alexander Cornwell in London; Writing by George Obulutsa; Editing by Mark Potter)

[Holac]

This is a big deal. 

[Che -Guevara]

I wonder how many illegal payments were made in order to secure Bosaso and Berbera?

[Old_Observer]

Oodweyne,

 

It is more than that.

There has been conflict on the "Road and Belt" for past 10 years. Americans want it interrupted and used for their or their client states use.

Eritrea was expected to intercept and dismantle this. Ghele 1 Isayas 0

America tried to enter Djibouti through Egypt (nothing against Ethiopia), Saudi Arabia (cannot use in Yemen) and dismantle Ghele. Ghele 1 Saudi 0

The DP World cannot have competing port within such and such Zeila and Assab are completely and specifically out.

Ethiopia has to guarantee 80% of its business. This is always in effect unless Ethiopia owns a port, like Ethiopia becoming federated with Eritrea or others. Remember Ghele proposed confederation with Ethiopia out of the blue like Sadat did to Israel.

Somaliands share offer to Ethiopia may have something to do with this.

 

What is Somaliland offering to DP and the tretcherous Egyptians?

 

Remember competition should always be peaceful and commercial. If Somaliland tries anything else with the American who is sqeezing Ethiopia and Djibouti and Egyptians get service without paying a penny or a soldier piggybacking DP world and USA.

I would hate to be Somaliland.

Everything else is commercial, location, facility advantages which is fair and fine.

 

Don't be like Eritrea wishing your brother's ill for you to win. Arabs are just moneyed nomads trying to behave like superpowers. Yemen also has big effect in short term. Eritrea was more than happy to see Yemen suffer for few million dollars. The Ethiopians would starve rather than do something like that. Ghele was noble when it came to Yemen. Dollar rain from Saudis was NO.

ITs also a factor that Ghele is Ethiopian, Djiboutian and of course Somali. The Ethiopians have done good by him when France wanted him out even basing their army when he needed. Remeber there was court case in France from the days Ghele was chief of security for his uncle? Manufactured of course.

 

 

 

[Old_Observer]

Oodweyne,

Aren't all states what you described of Ghuelleh?

He did not provoke Eritrea. He did not put Eritrea in the hole. Eritrea did it all by itself.

He actually tried to reconcile Eritrea and Ethiopia lol But to some degree was genuine, he did not want wars in the neighborhoud, the Afar being in Djibouti, Ethiopia and Eritrea is also something he cannot ignore.  I am sure that is his always his talk with Farmaajo and Bixi. No war around here.

 

As long as you folks do it similar way, its all good and fine. Do it with outsmarting each other, just do not kill the cow that is location. You have location which is gift in this case and a curse for others like Yemen.

 

[Suldaanka]

 

Djibouti Gov't failed in its bid to resolve this through the court system. The day after the Court ruled against Djibouti, Dictator IOG now takes uniletral strongman to resolve the dispute.

 

Quote

Court rules in favour of DP World in Djibouti port dispute

 

https://www.thenational.ae/business/court-rules-in-favour-of-dp-world-in-djibouti-port-dispute-1.38637

 

The arbitration claim was initiated by Djibouti in 2014, claiming that DP World had made illegal payments to the head of the country’s port and free zone authority to secure a commission to operate the country’s Doraleh Container Terminal.

 

A London-based arbitration panel has found in favour of DP World in a long-running dispute with the government of Djibouti, over a port concession awarded to the company in 2014, the Dubai Government said on Tuesday.

 

The arbitration claim was initiated by Djibouti in 2014, claiming that DP World had made illegal payments to Abdourahman Boreh, the head of the country’s port and free zone authority, to secure a commission to operate the country’s Doraleh Container Terminal.

 

The tribunal, consisting of Lord Leonard Hoffmann, Sir Richard Aikens and Peter Leaver QC, dismissed Djibouti’s claims in its partial final award made on Tuesday, holding Djibouti liable to pay all legal costs.

Arbitrations cannot be appealed apart from in extraordinary circumstances such as fraud and other inappropriate actions taken by an arbitrator.

 

The conclusion of the arbitration claim comes nearly a year after a London court dismissed charges brought by Djibouti in 2012 against Mr Boreh, who is now based in Dubai, accusing him of taking illegal payments.

 

Djibouti sought to rescind DP World’s concession in July 2014 after Dubai refused to extradite Mr Boreh. However, the company continued to operate the terminal during the ongoing legal proceedings.

A spokeswoman for DP World declined to comment.

 

The port operator’s shares, listed on the Nasdaq Dubai, closed up 2 per cent at US$20.70 on Tuesday, ahead of the arbitration announcement.

 

jeverington@thenational.ae

 

[Old_Observer]

15 minutes ago, Oodweyne said:

Suldaanka, 

 

To give you a bit of a background information in here, let me say, that, it all kicked off when Mr Borreh and Mr Ghulleh had a mighty fall out in "divvying-up" the loot of that glorified city-state, which in turn passes itself off as a nation-state (yeah, right!). And then, Mr Borreh, had the temerity to make the "introduction" between DP World in which originally he brought to Djibouti on one hand and Somaliland on the other hand.

 

 

 

 

So perfect choice of words to describe Djibouti. If the chapel here did not know that  you are in a highly consequential  competition, one would think these two Somalis are going to war.

 

But then again, so is Singapore. So is Imirates, so is Qatar. I think Ghuelleh should get rid of democracy, make himself emperor, get two more wives one from other parts of Ethiopia, One from Eritrea have some more children.

What is the use of democracy in Djibouti and democracy is going out of fashion anyway.

 

On the one hand the competition between Djibouti and Somaliland is same as that between Britain and France. The British were more snicky, they called Italy and told them to take from Djibouti to Sudan (Eritrea). The British did not need more since they have cvered both sides of the gate, but just in case encouraged Italy taking Somalia.

 

What is Somaliland going to do about Puntland and Eritrea?

As you said Ghuelleh has the experience, ambition and tools at his disposal or easy reach to throw monkey wrench.

 

Maybe Kilil 5 should make money from both of you. Here is an idea. How about Somali Kilil collect protection money from both of you and when either of you needs some roughing up there is ready enforcer and trouble maker?

 

Remember Ghuelleh has big screw he can tighten on Ethiopia, but they also have few screws that if they tighten would squish him out of the game.

 

The one thing I like is this competition is for development, for moving forward, for something better. Unlike the competition somewhere where its how to destroy the other or bald men fighting for a comb. This is going to be good.

 

I bet you mafia boss brother Ghuelleh has you on his list for sure.

 

 

[maakhiri1]

Djibouti got billions in development and then thet kick them out, well done

[Suldaanka]

6 hours ago, Oodweyne said:

Suldaanka, 

 

To give you a bit of a background information in here, let me say, that, it all kicked off when Mr Borreh and Mr Ghulleh had a mighty fall out in "divvying-up" the loot of that glorified city-state, which in turn passes itself off as a nation-state (yeah, right!). For they were the best of friends, "financial partners" and "all-around-mate-to-one-another" prior to their fall-out.

 

And then, Mr Borreh, had the temerity to make the "introduction" between DP World in which originally he brought to Djibouti on one hand and Somaliland on the other hand.

 

In particularly with the view of the DP World making a bid for Berbera port (just like they once did for Djibouti). And then convincing the Somaliland's government under President Silanyo to "allowing" the likes of DP World to compete against the French's Multinational Corporation (MNCs) by the name of Bollore Group, that was also running to win the "bid" for Berberra port.

 

Hence, when Ghuelleh find out that DP World was also interesting in developing Berberra port, he thought to himself that, just to "intimidate" them or to "scare" them off from Berberra port, he decided to "kill two birds with one stone" in his flimsy court case.

 

And that, firstly, was to bankrupt Mr Borreh through the court system in UK, where you pay both the legal fees of yourself and the "opposing litigant", if the civil case of the kind Mr Ghuelleh had brought against Mr Borreh were to go against you in the final rulings. And secondly, to ward off the likes of DP World not to have any dealings with Berbera port in any way or shape or form.

 

Hence, that is why he went out of his way to try to embarrass the DP World in western press about the sort of alleged kickbacks they give in-order to win their contracts from third-world countries. And he was doing this so that this DP World will suffer a "reputational damage" in the eyes of developed world in which it wants to break-in and compete against the giants of the western's world.

 

Consequently, when he lost the legal case originally, and then on top of that he lost the "arbitration case", Tuesday, he simply lost all sense or proportion in anger. Which is the reason he cancelled the deal with DP World's contract with Djibouti today.  

 

However, one thing you have to give to him is that, he is a real "suit-wearing-street-hustler", particularly of the kind the any "street-corner-drug-dealer" in the Ghettos of the USA knows in his heart of heart not to cross him and expect no pay-back from him.

 

And this is why Mr Borreh had to contend with several years of going through UK's legal courts (and even hiring expensive lawyers to boot) just to prove the flimsy case in which Mr Ghuelleh has brought against him.

 

And today is the final outcome of that case whereby Mr Ghuelleh went home with his tails between his legs, and with a comprehensive dismissal of his outrageous "double-case" against Mr Borreh and DP World, being shredded in the highly respected UK's legal system, ringing in his ears. Even if decided in defeat to take out his frustration on to the shoulders of the likes of DP World by cancelling a deal he "entered" with them several years ago.

 

The dictator made his calculations wrong. it will backfire spectacularly at the dictator's face.  Lawyers salivate for these kind of disputes.  

 

Any other foreign operator be it those from China or erswhere will not legally take over something that has been illegally obtained unless there is a settlement between the two disputing parties. A break contract could make Djibouti broke for generations. 

[Old_Observer]

3 minutes ago, Suldaanka said:

 

The dictator made his calculations wrong. it will backfire spectacularly at the dictator's face.  Lawyers salivate for these kind of disputes.  

 

Any other foreign operator be it those from China or erswhere will not legally take over something that has been illegally obtained unless there is a settlement between the two disputing parties. A break contract could make Djibouti broke for generations. 

 

Aren't you making a hill out of a mole hole. The man knows what he is doing. He has been through this many rounds. It is not the port of Djibouti BTW you know that.

 

If Djibouti will be broke, then you will never see any DP. That you can be sure of. A man who is capable of arm twisting Mogadishu, Addis Ababa and Asmara by one arm or finger cannot be intimidated.

 

[Dahireeto]

Why are Somalilanders angry at Djibouti cutting off ties with UAE company? 

 

 

[Che -Guevara]

1 hour ago, Dahireeto said:

Why are Somalilanders angry at Djibouti cutting off ties with UAE company? 

 

 

It's not anger, it is paranoia. Some think every Somali is out to get them.

[Holac]

As much as I hate Arabs exploiting and taking advantage of poor African countries ruled by corruption, I think Djibouti's decision may damage the country's reputation. Any breach of contract like this gives future investors a good reason to keep their money in their pockets. However, China doesn't care and may be angling for the opportunity to takeover. 

[Old_Observer]

3 hours ago, Che -Guevara said:

It's not anger, it is paranoia. Some think every Somali is out to get them.

 

Yes. Mostly has to do with it.

You can see Oodweyne never missing to mention Puntland, even though Puntland is not involved. Oodweyne is looking too far ahead, way too far unnecessarily.

 

[Old_Observer]

1 hour ago, Oodweyne said:

 

That is the "gamble" of Mr Gheulleh. But he seems to forget that the DP World will sue any Chinese outfit that takes over the Doraleh Container Terminal. Particularly since they have build it with their own money.

 

Unless of course, the outfit that takes it over is a Chinese's State-Owned-Enterprise (SOE) that simply has no larger "footprints" in the western world (in the commercial sense of that word), where such "legal suit" can easily be mounted by a well-heeled lawyers from the DP World.

 

But we shall see whether his "calculated gamble" against the DP World will play out as he seemed to have "game-planned" in advance in here.

 

Or whether every port-operating company the world over will not touch that port in Djibouti with even a long barge-pole (as it were).

 

No that is not any gamble of Ghuelleh. He can run the outfit himself if he wants. Only few years left in the agreement of 20 years. DP is aafter the renewal. DP will loose and I can tell you, DP will also loose Yemen. DP will be left in Eritrea and Somaliland who are not in the dead centre of the gate.