Port Company also prohibited from replacing DP World directors in joint venture Company.
DUBAI, United Arab Emirates, September 5, 2018 – The High Court of England & Wales has granted an injunction restraining Djibouti’s port company, Port de Djibouti S.A. (PDSA), from treating its joint venture shareholders’ agreement with global trade enabler DP World as terminated. The High Court has further prohibited PDSA from removing directors of the Doraleh Container Terminal (DCT) joint venture company who were appointed by DP World pursuant to that agreement. PDSA is not to interfere with the management of DCT until further orders of the Court or the resolution of the dispute by a London-seated arbitration tribunal.
PDSA is owned in majority by the Government of Djibouti and its CEO is the Chairman of the Ports & Free Zones Authority of Djibouti. Hong Kong-based China Merchants is the minority shareholder in PDSA.
The High Court’s order follows the unlawful attempt by PDSA to terminate the joint venture agreement with DP World and the calling of an extraordinary shareholders’ meeting on 9 September by PDSA to replace DP World appointed directors of the DCT joint venture company. This is the third legal ruling in relation to the Doraleh Container Terminal following two previous decisions from the London Court of International Arbitration (LCIA), all of them in favour of DP World. It recognises that although PDSA is the majority shareholder of the DCT joint venture company, it is DP World that has management control of the company, in accordance with the parties’ legally binding contracts.
The new ruling against PDSA, issued by the Court without PDSA’s participation, makes clear that PDSA:
If PDSA disobeys the Court’s order and seeks to replace DP World nominated directors of DCT on 9 September, it may be in contempt of court and face a fine or the seizure of its assets and its officers and directors may be imprisoned.
The Court has ordered PDSA to present its defence at another hearing on 14 September.
Meanwhile, DP World is notifying Standard Chartered Bank so that the bank will reject any instructions that may be sent to them after the 9 September meeting. China Merchants, who have been given operational control of the Djibouti Freezone in breach of DP World’s exclusivity rights, will also be informed given its minority shareholding in PDSA.
“If you owe your bank a hundred pounds, you have a problem. But if you owe a million, it has.” – John Maynard Keynes
There are worries about the rising levels of debt the Philippines has to China. That should worry all Filipino. Since, this will be repaid, even as the infrastructure projects under the President is served now. The time for repaying these debts will come. This might be the next one after President Rodrigo Roa Duterte might have to answer for that. But he should be worry himself of the levels he is putting the Republic in, unless he wants important parts of the infrastructure be “given” to the Chinese as a way of repaying the debt like Sri Lanka did.
“The conclusion of an agreement with China to manage the Hambantota port was seen as inevitable after the government buckled under Chinese pressure when the China Communication and Construction Co Ltd, which was building the port city, demanded USD 143 million as compensation for the stalling of the work. The Sri Lankan government was also compelled to renegotiate the Colombo Port city project last year, which had been suspended due to criticism about the Chinese ownership of 20 hectares of freehold land as well as controversy over the project’s possible negative environmental impact” (Smruti S. Pattanaik – ‘New Hambantota Port Deal: China Consolidates its Stakes in Sri Lanka’ 17.08.2017).
This story should be worrying for the Philippines as the rising debt to China will come to roost one day. Duterte has accepted and taken it for his projects, but will it be sustainable. That is something he himself should ask himself and also if they can repay this debt without paying a high price.
Jovito Jose P. Katigbak reported in June 2018 this: “Another issue worth noting is debt sustainability. There are concerns that borrowing heavily from China will lead the country into a debt trap. A 2017 Forbes article contends that the Philippine government debt could swell up to USD 452 billion by 2027, which translates to a debt-to-GDP ratio of 197 percent. The estimated figure is based on an annual 10 percent interest rate on loans levied by the Chinese government, hence tying the Philippines into a “virtual debt bondage”” (CIRSS Commentaries – ‘BRIDGING THE INFRASTRUCTURE INVESTMENT GAP THROUGH FOREIGN AID: A BRIEFER ON CHINESE ODA’ June 2018).
If the Filipino doesn’t get to worried about the amount they are borrowing from China. It isn’t only Sri Lanka who has eaten over more debt than they can swallow and has to repay with other means. There are worry in the Pacific island of Tonga.
As reported from Tonga: “Chinese aid in the Pacific region has increased dramatically in recent years and the country has become the region’s second-largest donor. Tonga’s debt to China has been estimated to be more than $100m by Australia’s Lowy Institute think-tank. The prime minister told local media last week that countries would get together to ask the Chinese government to “forgive their debts”. “To me, that is the only way we can all move forward, if we just can’t pay off our debts,” he added. Beijing has refused to write off loans in the past but has given Tonga an amnesty on repayments” (Simone Rench – ‘Tonga premier to ask China to ‘forgive’ Pacific debts’ 21.08.2018 link: https://www.publicfinanceinternational.org/news/2018/08/tonga-premier-ask-china-forgive-pacific-debts).
We have seen what the Chinese done to the Sri Lankan and Tongan counterparts. Both of instances could be happening to the Philippines. Not that you wish that, but the repayments of the growing debt will happen at one point. Even if there is long grace-period of lower rates on the interests as promised to Manila. You can wonder when the Beijing want to recoup the funds and the debt.
Right now, Duterte has a good relationship with Beijing, but when do they feel they have invested enough in the Build! Build! Build! (BBB) projects and wants profits and returns on the investments?
Because the Chinese will not do this forever. They might act nice at first and investing in infrastructure projects as a part of the Belt and Road Initiative (BRI), but when time goes by and lack of repayment hits the fan. The familiar faces of Beijing will get their value for the money and the sovereignty will be taken away. As a port, a piece of mines or exploration of some sort of industrial output will go directly to Beijing and a state owned company. Since they will get their repayment for all the offered debt to the nation.
That is what Duterte is risking, if it is oil exploration and extraction, mineral resources or even ports that is vital to the business done in the Philippines. Does he wants to risk that for the signature building of the BBB?
The last day of the campaigns in the Bugiri By-Election, which the final polls are on the 27th July 2018. This is where the candidates of Asuman Basalirwa (JEEMA), John Francis Oketcho (NRM) and Eunice Namatende (FDC). All of this candidates has massive backings from their parties and allies. Where the Police Force have started to follow Asuman Basalirwa especially and his ally Robert Kyagulanyi aka Bobi Wine, whose been followed and monitored by the Police Force. Therefore, you know that National Resistance Movement doesn’t want to lose this new district.
We know, that Museveni is behind his candidate, who will be part of the NRM Caucus and follow his every lead. That is why he went to Bugiri to tell his side of the story, because he couldn’t do without. Museveni have to be a part and also show his power to the tin-soldier he wants from the district. That is just the way he do.
“Bugiri by-election: President Yoweri Museveni has pledged to connect the people of Bugiri with clean water, construct for them better roads if they vote NRM’s Francis Oketcho. Museveni said the NRM is a party of action and this has been exhibited bvy the many things that have been done among them construction of better roads and the improved hospitals” (93.3 KFM, 25.07.2018).
What is the weirdest from all the final rallies from Basalirwa, Namatende and Oketcho where packed. That is just weird, all photos from these rallies are filled to the brim. Therefore, the pictures from Museveni rally isn’t alone. The FDC rally had Dr. Kizza Besigye and Patrick Amuriat Oboi, these two people could gain crowds on their own too. That Bobi Wine and Basalirwa would bring people are natural, as the swagger of Bobi Wine hits the masses. While Museveni could for all we know, be ferrying masses from other parts of Busoga and giving them food and gifts. That is what the NRM have done during the General Election last time. So why not do it now too?
Well, Voter Tourism might be a thing. While the bigger story is how Museveni continues to talk. The government will deliver project, only if Bugiri vote for his guy. The Bugiri people will get roads and such, if they do the right thing and votes for Oketcho. That means, the government is only there for you, if you follow the direct orders of the State House. This is the final implication and shows the lack of democratic values in the President.
He only gives, if people give him all power. That is what is just in the eyes of the President. NRM or nothing. No Remedy Mentioned (NRM) continues, as the pledges of roads hits Bugiri, a promise that Museveni have been given steadily since at least 2006 for certain parts of constituency. Therefore, as always with the NRM, there have to be recycled pledges. That is just protocol by now.
What is really insulting, is the state of “if they vote”, that means he will stop funding and stop being acting as President over the Constituency, if they vote for someone else. Bugiri will not get money or tax money for development projects, infrastructure development and everything else.
That is what he is saying.
Bugiri will be yet another place, that Museveni might wipe out of the map. As people will not follow his orders. They are not his property, even if he acts like it. Peace.
Whats the saddest about the tragedy in Solai, Nakuru County in Kenya, it is that it could have been avoided, but the common greed is the reason for the fatal dam. That it burst and hit the village. This is where the owner of the farm had put up an illegal dam called the Patel Dam, which was not legally built or constructed. It had already leaked before, but not burst. Therefore, the uncertainty was there, but nothing happen.
That the owners of the Patel Dam should answer for their illegal construction of the dam. Where the forces of water shredded lives, lives that could have had a longer life, if it hadn’t been for the greed of the Patel Coffee Estate Limited. That did this for the benefit of better farming, but dodged the law and built a dam. So that the harvest could be good. Build a cheap dam of sand and rock. Even forgetting a vital principal of having concrete as foundation of it. So that the dam has strength to oppose the currents of the water. Instead, the poor construction burst and took dozens of lives. Innocent lives who couldn’t be prepared for this. Even if there was leaks before, no one would have considered that the construction of it was this weak. That the owners had considered the possibility of it bursting.
The land was bought and renamed by the current owner, the old name was Milton Siding. That the building of this dam should have caused a stir by the Local Government in Nakuru. The Governor of Nakuru at the time, should have sanctioned the farm as the reports of the building should have been reported to his desk. The Police and the authorities should have inspected it and questioned its papers. Not to allow this sort of installation, unless he had permits and solid foundations for building it. This isn’t a tool-shack or a mere extension of a house. This is a major construction that has to follow certain technical specificity. Even the Kenyan government hire wrong people and building bad constructions, that has happen at ports and even bridges. Therefore, they should be careful to let private farmers and enterprises building dams like this.
That is why this is neglect by the government, the local government and the contractors, finally also the owners. All of them has failed the people of Solai, the Nakuru County Local Government should step-up and take blame, as they should seen this coming. They without actions, has given consent to the farm and its owner to do it. After getting knowledge of the construction, they should have informed needed authorities to stop the building of it, until the proper legal paperwork and shown the plan to safety standards. So that the public shouldn’t fear of what happen yesterday on the 9th May 2018.
The public shouldn’t be responsible for what owners tend to do on their land, they should trust that the owner has legal ability and has hired people with technical expertise to do this. Especially a project like this, building a dam and making sure the waters are steady. However, that didn’t happen here, as the foundation was built on the wrong premise. Cheap construction not built for securing the water. That is why it burst. The contractors, the owners and local government should have answers. Come up with reasons and answer in court for the deaths of innocent civilians. They are innocent people who got caught in the greed of the farmer.
That is the sad thing, that the farmer didn’t build a proper dam. He built a cheap one, that instead of thinking of consequences, only thought of profits. That is the sad reality and the authorities, should really be shaken, as they could let this happen on their watch. They are also responsible, since they didn’t take action and sanction the owner of the estate. That would have been the right thing and gotten the owner to strengthen the dam. However, that is just 20/20 and we know that didn’t happen.
We know how serious the burst is at it affected 2500 people and 500 families, as well as over 40 people are officially announced dead. All of them is too many, when this could have been avoided. They died over state neglect and lack of oversight. Peace.