Somalia engages Dutch law firm for €393,000 in fight over contractor’s €66m claim

[Farm]

Retards bought boats worth more than their internally sourced budget...

This is what happens when you have taxi drivers and terrorists running your government.

Somalia is engaging a Dutch law firm at the cost of €393,000 in a legal battle whose genesis can be traced to a deal which saw the government commit itself to an ambitious coastguard contract it could not even raise the initial deposit.

The arbitration which is set to kick off soon at the TAMARA arbitration in the Netherlands comes a year after the Atlantic Marine and Offshore Group (AMO), the contractor in the coastguard deal submitted its notice of arbitration.

The arbitration follows default by Somalia to pay honour the terms of the contract which amounted to €132 million. The contract covered the construction and delivery of six patrol vessels by AMO. The second part of the contract covered training and support to Somali Coast Guard. However, as admitted by the Financial Governance Committee chaired by the Minister of Finance and includes representatives from the World Bank and IMF among other institutions, Somali government defaulted.

AMO’S CLAIM

In the case, AMO is seeking Somalia be compelled to abide by the terms of the Building Contract entered into between the two parties in 2013. Abiding by the contract for now principally means Somalia pays AMO the principal amount of €66 million in addition to interest accrued from 2013.

In its notice last October 2018, AMO indicated the interest accrued stood at €24.6 million. One year since then, that interest has shot up.

In a letter of engagement between the Ministry of Defense and the Dutch law-firm, Legaltre dated November 19 and seen by Goobjoog News, the total legal cost is €393,000 charged at €300 per hour. The team will work for a period of 1,310 hours. This cost does not include costs for a parallel law firm in Mogadishu to be contracted based on the letter of engagement.

These figures are not cast on stone, the legal firm says. It may vary according to ‘the further information we may find and, in particular, on the developments in the arbitral proceedings.

SINGLE SOURCING

AMO had in October filed a case against Federal Government of Somalia (FGS) but went ahead to file a second case against the Federal Republic of Somalia (FRS), the formal contract holder.

Following the filing of the second case, the Minister of Defence Hassan Mohamed wrote to Finance Minister Abdirahman Beileh informing him of single sourcing in which case he settled for Legaltree which has been representing Somalia in the former case.

“Based on the above, I have recommended the award of this contract to Legaltree and have signed the engagement letter,” the letter dated November 13 from the MoD reads in part.

In the engagement letter signed by Defence Minister Mohamed and Attorney General Osman Guled, Legaltree demands 76% of the total cost in what could be indicative of cushion from default by FGS as demonstrated in the AMOSC deal.

“We require that an amount of EUR 300,000 be paid in advance. We will hold this payment on behalf of the FRS until such a time as we invoice, on a monthly basis, for our service,” Legaltree notes.

Should the remainder of the advance payment becomes less that EUR 50,000, Legaltree says, we will request a further advance payment that the FRS shall pay within four weeks.

https://goobjoog.com/english/somali...e393000-in-fight-over-contractors-e66m-claim/

 

[Ibro]

This was HSM government who sign the contract, not Formajo's government. It was originally meant to be paid by UAE to fit the bill. However, with Somalia being neutral during the Gulf Dispute and with the militarisation of Berbera. It meant FGS relationship with UAE is in the toilet right now, meaning there's no to pay for the contract. If the FGS tries to pay, it would take about 3/4 of the Federal Budget. So there nothing to be done about it. We're screwed due to HSM shortsightedness and willing to make Somalia more dependent on outside forces with their own interest.

I fucking despise HSM so much. An incompetent fool with no back bone.

 

[repo]

They also visited the Turkish shipyards then made the bold request that Turkey should supply them with state of the art Corvettes worth 250 million dollar. We will call it the frigates for food program.

Turkey is considering supplying sea vessels to Somalia to help Horn of Africa nation build up a Navy.
A visiting Somali delegation tabled a request for two search-and-rescue ships and six coast guard boats, worth some 250 million euros, during talks at the Undersecretariat for Defense Industries, or SSM, in Ankara last Friday, a senior SSM official told the Hürriyet Daily News

The delegation, which also visited shipyards in Istanbul and Antalya, was led by Abdiwali Ali Egal, vice-chairman of a fledgling Anti-Piracy Task Force attached to the Transitional Federal Government, Somalia’s rickety internationally recognized administration which is battling also Islamist insurgents.

The Somalis requested that Turkey provide the vessels either as a donation or as part of a barter deal with an offer for future opportunities in Somalia’s fishing sector, the SSM official said.

The Somalis, he said, are likely to raise the issue with Turkish Prime Minister Recep Tayyip Erdoğan when he visits Somalia on Thursday and Friday

Now the fledgling Somali government wants to buy a coast guard boat from Turkey to boost it assets against the country’s pirates. But there is one problem: how to afford the more than $10 million, the cost of the coast guard patrol boat.

Turkey’s procurement office, the Undersecretariat for Defense Industries (SSM), has come up with an ingenious, payment system: payment with fish.

Somalia, situated on the coast of the Indian Ocean, catches some of the world’s most delicious fish.

Many Somali groups, however, abstain from eating fish. Under the SSM plan, the Somalis will be able to catch fish to raise the money needed for the coast guard ship.

“We have reached a full agreement for Somali fish for our coast guard ship. This is a win-win situation for everybody involved,” one procurement official told the Hürriyet Daily News.

http://www.hurriyetdailynews.com/turkey-offers-boat-for-fish-to-somalia-22849

 

[Tukraq]

This was HSM government who sign the contract, not Formajo's government. It was originally meant to be paid by UAE to fit the bill. However, with Somalia being neutral during the Gulf Dispute and with the militarisation of Berbera. It meant FGS relationship with UAE is in the toilet right now, meaning there's no to pay for the contract. If the FGS tries to pay, it would take about 3/4 of the Federal Budget. So there nothing to be done about it. We're screwed due to HSM shortsightedness and willing to make Somalia more dependent on outside forces with their own interest.

I fucking despise HSM so much. An incompetent fool with no back bone.

No more farmaajos fault for picking Qatar over UAE but not being able to get them to pay for this, if your going to have a different group in Qatar, might as well get them to pay up for this and not just your campaign money

 

[SomaliMVP]

This was HSM government who sign the contract, not Formajo's government. It was originally meant to be paid by UAE to fit the bill. However, with Somalia being neutral during the Gulf Dispute and with the militarisation of Berbera. It meant FGS relationship with UAE is in the toilet right now, meaning there's no to pay for the contract. If the FGS tries to pay, it would take about 3/4 of the Federal Budget. So there nothing to be done about it. We're screwed due to HSM shortsightedness and willing to make Somalia more dependent on outside forces with their own interest.

I fucking despise HSM so much. An incompetent fool with no back bone.

And some idiots here want him back. Smh

 

[nomand]

No more farmaajos fault for picking Qatar over UAE but not being able to get them to pay for this, if your going to have a different group in Qatar, might as well get them to pay up for this and not just your campaign money

Low IQ,

so potentially alienate Qatar and Turkey for the unreliable UAE?

 

[Ibro]

No more farmaajos fault for picking Qatar over UAE but not being able to get them to pay for this, if your going to have a different group in Qatar, might as well get them to pay up for this and not just your campaign money

It's a lot more complicated than that. Turkey was backing Qatar, while Saudi Arabia and UAE opposed them. For Somalia to pick, it would be like betting in a race you know you're going to lose.

Turkey is a major military partner to Somalia. Qatar is a big investor in Somalia. UAE and Saudi Arabia are where we send our products to. If you choose the UAE and Saudi side, we would have lost investment and military support to rebuild Somalia. If we chose Turkey and Qatar's side, we would have been locked out of Gulf markets. It was a lose, lose situation. It was best for us to stay neutral and don't support either side.

 

[FBIsomalia]

Xamar order those not PL. So why we have to pay for your mistake. PL will not give one penny.

 

[Tukraq]

Low IQ,

so potentially alienate Qatar and Turkey for the unreliable UAE?

No, if your going to switch teams, get your new team to cover the cost of the old team

 

[Tukraq]

It's a lot more complicated than that. Turkey was backing Qatar, while Saudi Arabia and UAE opposed them. For Somalia to pick, it would be like betting in a race you know you're going to lose.

Turkey is a major military partner to Somalia. Qatar is a big investor in Somalia. UAE and Saudi Arabia are where we send our products to. If you choose the UAE and Saudi side, we would have lost investment and military support to rebuild Somalia. If we chose Turkey and Qatar's side, we would have been locked out of Gulf markets. It was a lose, lose situation. It was best for us to stay neutral and don't support either side.

Staying neutral alienates all 4

 

[nomand]

No, if your going to switch teams, get your new team to cover the cost of the old team

teams where not switched the UAE and Saudi Arabia asked somalia to boycott qatar and condemn turkey.

something we would never agree to. somali maintained it the status quo. it was the arab union that changed plus UAE was interfering in local somali disputes and trying to hijack berbera.

somalia remained neutral.

 

[Ibro]

Staying neutral alienates all 4

For the short term, we took a hit with foreign relations with these countries, but long term we made it clear to them we have our own interest, and we will act on them

 

[AarLibaax]

Farmaajo cleaning up Dam Jadiid's disastrous agreements

 

[Mr.Haggis]

We need those boats.

 

[IftiinOfLife]

I wish the horn would invest in making our own maritime material
Why buy foreign shitty boats , let’s make our own like the good old days.

 

[Grigori Rasputin]

@Farm thank you for using my phrases “ex cab drivers”

 

[Farm]

They also visited the Turkish shipyards then made the bold request that Turkey should supply them with state of the art Corvettes worth 250 million dollar. We will call it the frigates for food program.





http://www.hurriyetdailynews.com/turkey-offers-boat-for-fish-to-somalia-22849

Catch fish for a $250 million ship.



I used to think the 68 IQ thing was a meme... maybe not.