DP World issues statement on the case of Republic of Djibouti and others

DUBAI, 3rd March 2016 (WAM) - DP World has made the following statement following the judgment of the Honourable Mr Justice Flaux, in the English Commercial Court, in the case of Republic of Djibouti and others v. Mr Abdourahman Mohamed Mahmoud Boreh and others (2012 Folio 1333). We have invested significantly in Djibouti over the past 14 years and are proud of the major contribution we have made. We are therefore pleased that the English courts have rejected the allegations made against Mr Boreh, and indirectly against DP World. We remain disappointed that the Government commenced these proceedings and its arbitration against DP World, which is based on essentially the same charges the court has now rejected. We look forward to continuing to contribute to Djibouti’s economy and its community, and building on our successful and proud record in this region. We will now move forward in earnest to defend our position but we hope that is not necessary as a result of today's judgment. Key findings upon which the judgment is based include the following: Paragraph 934 "None of the payments and agreements of which the claimants complain was a bribe or corrupt payment or a promise of a bribe or corrupt payment for the reasons given at [691] to [793] above". Paragraph 793 "For all the reasons set out above, I have concluded that neither the payments made to Mr Boreh or his companies by DP World, nor the proposed shareholding in DCT (never in fact transferred) nor the finder’s fee for DDP (never in fact paid) constituted a bribe or a promise of a bribe to negotiate or agree soft terms in the DCT agreements. Furthermore, none of those matters alleged by the claimants establishes that these were corrupt payments for Mr Boreh’s personal gain which harmed the interests of the Republic". Paragraph 833 "For all the reasons set out above, I have concluded that there is no merit in any of the claimants’ complaints about allegedly soft terms having been agreed by Mr Boreh". Paragraphs 543-544 "Within four years of the DCT becoming operational in December 2008, the original investment had been repaid. PAID’s combined dividends and royalties from DCT are more than US$46 million per year in relation to a terminal with a life of between thirty and fifty years. After a great deal of fencing in answer to a question from me as to whether she accepted that the terminal had been a great success, Ms Ali accepted that it had: "MR JUSTICE FLAUX: I am not asking you to tell me what your case is, I know what the case is. I am asking you, as a Djiboutian with experience of this matter, whether you accept that the container terminal has been a great success for Djibouti? Yes or no. A. I would say yes." About DP World Doraleh- Djibouti Officially opened at the start of 2009, the 1.6 million TEU capacity Doraleh Container Terminal (DCT), built and operated by DP World, is the most technologically advanced container terminal on the African east coast. Just 11 km south of Djibouti, and with direct road links to Ethiopia, DCT, or DP World Doraleh, enjoys a strategic location at the crossroads of the main shipping lanes connecting Asia, Africa and Europe. The port lies on the major east-west trade route and provides a secure hub within the region for transhipment and relay activities. As of 2016 the terminal employs 927 staff, of whom 99% are Djibouti nationals. – Emirates News Agency, WAM - http://www.wam.ae/en/news/emirates/1395292317136.html