Somalia’s envoy to EU urges Govt to speak up as contractor moves to court

AMOSC Director Cees van Tongerlo in this picture delivers a Notice of Arbitration Letter to the court in Netherlands September 3, 2018. Photo: Handout

Somalia’s ambassador to the EU Ali Faqi has urged the Federal Government to act swiftly to avert what he termed as ‘damage to its reputation’ following an impending international court case by a Cypriot company over failure by the Horn of Africa nation to honour a contract it entered into in 2013.

“I want the government to take a legal position on this matter,” Faqi told Goobjoog News. “The court case will damage the reputation of the country.”

Faqi’s remarks followed a notification by contractor AMOSC to the court in Rotterdam Netherlands Monday on intention to sue Somalia for a coast guard deal billed at 132 million euros which has since attracted a 24.6 million euro interest from July 29, 2013 to March 2018.

Amo Shipping Company (AMOSC) which entered into the contract with then President Hassan Sheikh administration said Monday it had delivered a Notice of Arbitration to the court. According to the Contract, Transport and Maritime Arbitration Rotterdam-Amsterdam (TAMARA) the parties settled for TAMARA for arbitration.

PART II: Tussle between oversight body, Defense HQs and imminent court battle

EXCLUSIVE: Cypriot company to sue Somalia over coastguard deal default, claims €90.6m

Faqi confirmed to Goobjoog News the existence of the contract which the government has indicated it no longer exists. The Financial Governance Committee chaired by the Finance Minister and draws membership form among others the office of the PM, President, Auditor General and the World Bank, IMF and African Development Bank indicated in this year’s report that the AMOSC contract ‘did not proceed’. It earlier said (2016/17) it had received assurance from the Defence Ministry whose docket the contract fell that AMOSC ‘held no expectations’ and effect the contract was void.

But AMOSC has maintained the contract had not in any way been terminated and is thus alive accruing interest. So far, according to AMOSC, the contract has accrued 24.6 million euros at a rate of 8% per annum according to Dutch law.

The government should take a position on this matter and engage AMOSC, Faqi who at some point visited the yard to check progress of the vessels building said.