Piracy Report and On-The-Ground Analysis

Report on Somalia Detailed Weekly Piracy Report and On-the-Ground Analysis

Piracy - At Sea - On Land - Domestic News - International Developments

24 hr Global Contact: +44 207 754 3555 www.msrisk.com Report on Somalia ~ SUMMARY June 18 - 24, 2012 (week 24)

At Sea:

• Despite the south-western monsoon season, pirate attacks have increased during this reporting period with 2 attacks on vessels being reported. There have been reports that one dhow has Key Statistics been hijacked by Somali pirates however unconfirmed reports have cited that the dhow was later released (Pages 3 - 4; Map Page 10). • Hijacks: 1 Updates: • Attacks: 2 • Releases: 0 • 23 June 2012 - According to reports, negotiations for the release of the Naham 2, a Taiwanese fishing vessel, may be completed soon. The vessel, along with its 15 crew members who are comprised of Taiwanese, Filipino, Indonesian, Vietnamese and Chinese sailors, was originally hijacked on 26 March of this year. The initial ransom demand was stated to have been US $ 4 million however unconfirmed reports have placed the ransom at US $2 million. News of a possible release will be monitored over the coming weeks. • 21 June 2012 - Defense Minister Hussein Arab Isse announced in a news conference held in Mogadishu that Deborah Calitz and Bruno Pelizzari have been released (Page 4). • 17 June 2012 - Reports have indicated that the Taiwanese fishing boat, the Shiuh Fu 1, has apparently been sighted by a security team onboard an MV this week (Page 4). • Updates on hostages still being held (Pages 4 - 5).

Piracy Related News:

• 22 June 2012 - The Human Cost of Piracy 2011, a report which details the plight of seafarers at the hands of Somali pirates was launched at a press conference at the Headquarters of the International Maritime Organization (IMO) in London, United Kingdom (Page 5). • Key Statistics for 2011: • 3,863 seafarers were ﬁred upon by pirates • 1,206 hostages were held captive • 35 died, most while trying to escape during rescues • The average length of captivity increased by 50% • Levels of violence remained high

Weather Analysis:

• As the south-western monsoon season continues in the waters off Somalia, the weather conditions for the following week will continue to be less favorable for pirate activity. Water conditions will be unfavorable for small boats and skiffs along the coasts of Somalia, Kenya and Tanzania and the same conditions will remain further out into the ocean. Subsequently, any pirate attacks or hijackings to occur further our in the ocean will likely be done so by motherships however it is highly likely that pirates will remain operating in the Gulf of Aden as the region provides some shelter from the monsoon and allows small skiffs to operate more freely. Any vessels traveling through the Gulf of Aden are advised to exercise extreme caution as it is likely that attacks or hijackings will be concentrated in the area (Page 6).

On Land:

• Insecurity across Somalia has continued to occur throughout this reporting period as allied forces have continued to ﬁght al- Shabaab in the southern region of the country (Pages 7 - 8).

Domestic News:

• 23 June 2012 - The United States has warned of an imminent threat of attack in Mombasa, Kenya, which is the second largest city in the East African nation (Page 9).

24 hr Global Contact: +44 207 754 3555 www.msrisk.com Report on Somalia June 18 - 24, 2012 (week 24)

At Sea:

• 20 June 2012 - A dhow has been hijacked in position 20:29N-059:03E, around 13 nautical miles north-east of Masirah Island, Oman. The dhow was attacked Key Statistics by 8 pirates aboard 1 skiff which was spotted near a mothership. The vessel, along with its seven crew members, was taken hostage. Vessels are advised to • Hijacks: 1 exercise extreme caution if in the vicinity. • Attacks: 2 • The Marshall Islands-flagged, US-owned M/V LNG ARIES was attacked by • Releases: 0 a skiff with 5 - 6 pirates on board in location 20:50N - 059:30E, just 35 nautical miles northeast of Masirah Island, Oman. The skiff had no visible ladders onboard however the pirates fired with machine guns approximately 400 - 600 yards away from the vessel. The vessel also reported sighting an RPG. No casualties were reported in the incident. The vessel has a citadel onboard and razor wire and fire hoses were rigged. The vessel increased its speed and separated 4 nautical miles from the skiff before the pirates ended their pursuit. The USS VICKSBURG was approximately 200 nautical miles northeast of Masirah, Oman at the time of the incident. It has been confirmed that the M/V LNG ARIES, along with the crew members on onboard, is safe. • 18 June 2012 - A bulk carrier was approached in position 12:19N - 043:57E in the Gulf of Aden. Six skiffs with 4 - 6 pirates in each skiff approached the bulk carrier while underway at 25 knots from the starboard bow. The Master of the vessel raised the alarm, increased speed, altered course and sent a distress message. The skiffs attempted to approach the vessel from the starboard beam and starboard quarter while another one of the skiffs approached the vessel from the port bow. The onboard security team fired eight warning flares however the pirates continued their approach. Weapons and ladders were also seen in the skiffs. After 40 minutes, the security team fired six more warning shots and the pirates aborted the approach. A navy ship arrived at the scene for assistance. • Activity off the coast of Somalia has been relatively quiet for Somalia’s pirates in recent weeks. Poor weather conditions, due to the start of the south-western monsoon season, a lack of investment from wealthy backers and the recent anti-piracy activities of the Puntland Marine Police Forces (PMPF) have all been cited as reasons for the lack of pirate activity in recent weeks. 4 May of this year was the last time pirate groups planned confirmed operations in order to hijack vessels at sea. At the time, pirates from the Haradhere area, in Somalia’s Mudug region, set out in three speed boats with nine armed pirates in each craft. Since then there has been little in the way of organized pirate activity in the region. Haradhere has become the pirates‘ capital in the last several years as well as being the city in the heart of pirate operations in the region. Groups of Somali pirates who are based in the Haradhere area have claimed that there are a variety of reasons as to why their operations have been reduced. The first is a lack of investment while the second is poor weather. Investors have stopped investing in the operations after a high number of attacks were unsuccessful, as a result, these investors have lost a lot of money and now they do not want to invest in those pirates who operate in the area. The poor weather has also prevented pirates from going out to sea as weather conditions have been unfavorable for small skiffs. Although the helicopter strikes employed by EU forces on 15 May of this year on a pirate base on a beach in Handulle, located around 11 miles from Haradhere, has caused some pressure on pirate activities to continue, the majority of the issues are related to internal reasons, amongst which the main is a lack of investment. Due to the fact that not many vessels have been released, there is no ransom money available for new operations to commence. Even with the recent release of the MT Liquid Velvet, it is unlikely that the situation will change. Furthermore, there have been very few high profile, successful pirate hijackings over the last few months. Figures released by EU NAVFOR for the month of May indicate that just seven incidents and two attacks occurred in May, one of which resulted in the successful hijacking of the MT SMYRNI by pirates belonging to the gang run by Isse Yulux. Those Somali pirates who are in the Haradhere area usually use different bases when they are planning new attacks. The best known being the beaches of Haradhere, Handulle and another small village which pirates settled in, close to where

24 hr Global Contact: +44 207 754 3555 www.msrisk.com pirates are holding the Malaysian - ﬂagged MV ALBEDO. Those Somali pirates who operate in these areas mainly belong to clans from southern Somalia. Pirates are operating in Haradhere freely, without any fear of interdiction. The city is out of the control of Galmudug and the Somali Transitional Federal Government (TFG), as such, militants from al-Shabaab and pirates control the area locally. The second largest pirate base can be found in Hobyo which is located in the southern Mudug region. Hobyo is another important base for operational planning, however pirates in the area have also been hit by similar issues which have affected their operations at sea. Kismayo, in Somalia’s Lower Jubba region, is another pirate hot spot. Many groups have used the area to launch attacks at sea and also to kidnap hostages from neighboring countries such as Judith Tebbutt and Marie Dedieu. Pirates in the area have good relations with al-Shabaab militants who hold the city and use the area for their operations.

Updates:

• 21 June 2012 - Defense Minister Hussein Arab Isse announced in a news conference held in Mogadishu that Deborah Calitz and Bruno Pelizzari have been released. The two were captured in 2010 while on board a yacht just off the coast of Tanzania. The pirate gang holding the couple had initially demanded a ransom of US $10 million. The South African couple’s 20-month captivity is amongst the longest periods that hostages have been held by pirates in Somalia. The South African government thanked the Somali Government as well as Italy for their roles in securing the release of the couple however there were no details provided pertaining to the roles that they played. Twelve armed pirates had hijacked the yacht Choizil in October 2010 as it was about to enter the Mozambique channel, south of the Tanzanian port city of Dar es Salaam, on its return trip to South Africa. The pirates then rerouted the boat north towards Somalia where a French warship began tracking the yacht as it was sailing suspiciously close to the coastline. After attempts to contact the yacht failed, the warship launched a boarding team which came under fire from the yacht. The yacht eventually ran aground and the pirates took Pelizzari and Calitz ashore at Baraawe, however the captain of the yacht, Peter Eldridge, refused to leave and was eventually rescued by EU naval forces of the coast of Somalia on 6 November 2010. So far, no confirmations pertaining to the ransom amount have been released however there are reports that the ransom amount that was paid was close to US $750,000. Two sources from the Somali Prime Minister’s office have stated that the two have boarded a plane, headed to Djibouti. The couple is expected to arrive home on 26 June after undergoing a few medical tests. • 17 June 2012 - Reports have indicated that the Taiwanese fishing boat, the Shiuh Fu 1, has apparently been sighted by a security team onboard an MV this week. According to reports, the vessel was seen in position 02.44.7N - 056.42E, about 500 miles off the Somali coast. The Taiwanese fishing boat was hijacked on 25 December 2010. Reports emerged back in January of this year that the pirates holding the vessel and crew had amputated the arm of its Captain, Chao-I Wu, in an attempt to pressure the owner in to paying the US $3 million ransom demand, however these reports have not been confirmed as no other information pertaining to the condition of the Captain and the rest of the crew has been released. The vessel is reported to be in a significant state of disrepair. If it is indeed being used by pirates as a mother ship during the current monsoon period, it remains to be seen whether or not the vessel will be able to survive the harsh weather conditions. • The Human Cost of Somali Piracy 2011 - Hostages Still Being Held: • MV ICEBERG I - As of 31 May 2012, twenty-two crew members have remained in pirate hands for two years and two months. The owner of the vessel went out of business and has left the hostages in the difficult situation of not having a ship owner to negotiate the release. They have withstood the death of two crew mates along with countless psychological and physical challenges coupled with the uncertainty of when they will be released. It is believed that all twenty-two crew members remain on the vessel however there have been reports stating that the vessel is badly damaged and that it is docked near a beach and leaking unsafe liquids. • FV PRANTALAY 12 - Four fishermen have been held for two years and one month. They are being held on land because the vessel sank in seasonal storms in July 2011. There are reports that the hostages are in poor health however the pirates will not release them without a ransom. Presently, it does not appear that ransom negotiations are in the process. • MV ASPHALT VENTURE - Seven Indian crew members remain in captivity after one year and eight months. Although pirates have released most of the crew, they held all the Indian nationals as a result of the arrest of 61 pirates by the Indian Navy on another ship. The pirates are now demanding the release of

24 hr Global Contact: +44 207 754 3555 www.msrisk.com the apprehended Somalis in exchange for the Indian crew. It is unclear how this situation will be resolved as the Indian government is not, and will not, negotiate with the pirates. • MV LEOPARD - Six crew members taken off the vessel have been held on land for the past year and five months. At present, there are no reported negotiations that are underway in order to secure their release. • FV ALFARADOUS - Eight fishermen have been held for one year and four months. There is no information pertaining to their condition or prospects of release. • FV ABDI KHAN - Three hostages have been in pirate hands for one year and two months with no information on their condition or when they will be released. • MT GEMINI - Four South Korean hostages remain in captivity even though a ransom for the release of the vessel was paid to the pirate gang. The hostages have been held on land and the pirates have been demanding the release of six pirates who are jailed in South Korea. The four crew members have been held for one year and one month. • Two Medecins Sans Frontieres (MSF) workers were abducted in Dadaab, Kenya by al-Shabaab while providing humanitarian assistance to Somali refugees. Al-Shabaab ‘sold’ the two workers to a pirate gang. As with hostages from private yachts, these two women do not have a ship owner or an insurance company in order to negotiate their ransom, however they are prominently displayed on MSF’s website in an effort to bring about their release. The hostages have been moved around, sometimes being held on land and at other time aboard hijacked vessels, so as to reduce the likelihood of a rescue operation. They have been held captive for the past eight months. • FV ARIDE - Two Seychellois fishermen have been in captivity for seven months. Due to the fact that their vessel sunk in February of this year, the victims have been held on land.

Piracy Related News:

• 22 June 2012 - The Human Cost of Piracy 2011, a report which details the plight of seafarers at the hands of Somali pirates, was launched at a press conference at the Headquarters of the International Maritime Organization (IMO) in London, United Kingdom. The report is a joint project put together by Oceans Beyond Piracy and the International Maritime Bureau (IMB). This report is an update of the first report on the Human Cost of Piracy for 2010 which was launched in London by Oceans Beyond Piracy in June of last year. It includes a statistical analysis of the threats of violence which are caused by acts of piracy as well as the first published findings collected as a result of the Declaration Condemning Acts of Violence Against Seafarers. The Declaration, which was signed in Washington in August 2011 by Liberia, Marshall Islands and Panama, and by the Bahamas in March 2012, commits signatory states to submit reports to the IMB on the treatment of seafarers held hostage. According to the report, in 2011, at least 3,863 seafarers were fired upon by Somali pirates armed with assault rifles and rocket propelled grenades. Although the number of hostages has gone down over the past year, the violence faced by seafarers has remained high and attacks are often carried out with a determined ferocity even against those vessels who are protected by private security teams on board. Of that number, 968 seafarers faced armed pirates who managed to board their vessels while 413 of these seafarers were rescued from citadels on their vessels by naval forces after waiting for hours or even days while pirates attempted to break into the citadels. A total of at least 1,206 hostages were held captive by Somali pirates in 2011, these included 555 seafarers who were attacked and taken hostage during the year and 645 hostages that were captured in 2010 and who remained in pirate hands during 2011. Furthermore, 26 hostages have been held for over 2 years while 123 hostages have been held for over 1 year. The figure also includes 6 tourists and aid workers that were kidnapped on land. The average length of captivity has also increased by 50% over the past year, up to an average length of over 8 months. Often these hostages face systematic and daily psychological and physical abuse and have been at times used as human shields. The report shows that all of the captive crews were subject to treatments in violation of basic human rights and psychological abuse. At least half experienced physical abuse. In addition to those reported to have died in captivity, it indicates that three of the hostages died following release because of the abuse that they experienced in the hands of the pirates. In 2011, at least 35 hostages died: 8 were killed by pirates during an initial attack or after being taken captive; 8 died from disease or malnutrition caused by a lack of access to adequate food, water and medical aid while being held; and 19 died in crossfire while being used as human shields as well as during hostage rescue attempts. The hostages held in 2011 predominately came from non-OECD countries, especially from the Philippines (17%), China (9%), and Indian (8%). Only 7% came from OECD countries. It has been estimated that 111 pirates were killed in 2011: 78 died in direct

24 hr Global Contact: +44 207 754 3555 www.msrisk.com encounters with naval forces; 3 died in clashes with Puntland security forces; and 30 died in ﬁghts with other pirates over ransoms and hostages. The report shows that all of the captive crews were subject to treatments in violation of basic human rights and psychological abuse. • 19 June 2012 - British Rear Admiral Duncan Potts, the commander of the EU mission, stated that although the number of successful Somali pirate attacks has fallen, international navies must not drop their guard but must keep up the pressure if efforts to eradicate piracy in the region are to succeed. The commander warned that gains which have been made against pirates off the Horn of Africa were reversible and that the ﬁght against piracy would only succeed once governance and security improve in Somalia. The European Union gave the admiral new powers this year to destroy pirate equipment stashed on beaches, a tactic which has been used only once so far in an attack which occurred last month in which a helicopter struck a stockpile of skiffs in central Galmudug region. Since 2008, EU nations have deployed between four and seven combat ships off the Horn of Africa as part of Operation Atalanta.

Weather Analysis:

• Gulf of Aden - West-southwesterly winds of 10 - 15 knots, with seas of 2 - 4 feet. • Extended Forecast - West-southwesterly winds of 10 - 15 knots will continue with seas increasing at the start of the week to 5 - 7 feet however they are expected to lessen by the middle of the week. • Somali Coast - The Somali Coastal area continues to be under the inﬂuence of the Southwest Monsoon, with south-southwesterly winds of 25 - 30 knots and seas of 6 - 8 feet. • Extended Forecast - South-southwesterly winds of 25 - 30 knots are expected to continue with seas increasing to 7 - 9 feet. • Arabian Sea - Westerly winds of 18 - 24 knots and seas of 9 - 12 feet. • Extended Forecast - West-southwesterly winds of 18 - 24 knots and seas of 9 - 12 feet. • Central African Coast/Indian Coast - South-southeasterly winds of 18 - 22 knots with seas of 5 - 7 feet. • Extended Forecast - South-southeasterly winds of 12 - 16 knots and seas of 7 - 9 feet, decreasing to between 4 - 6 feet by the middle of the week. • Mozambique Channel - The normal high and low pressure interaction around 40 degrees South latitude continues to inﬂuence the area. Expect south-southeasterly winds in the northern channel of 15 - 18 knots and seas of 5 - 7 feet. In the southern channel, there will be south-southeasterly winds of 12 - 15 knots and seas of 7 - 9 feet. • Extended Forecast - In the northern channel, expect east-southeasterly winds of 10 - 15 knots and seas of 4 - 6 feet. In the southern channel, expect south-southeasterly winds of 8 - 12 knots, becoming variable at 4 - 6 knots with seas of 5 - 7 feet. • Surface Currents - The currents within the Gulf of Aden average around 0.5 - 1 knot. Currents speeds along the Somali basin, continuing south off the northern Kenya coastline until about 10 degrees south will average around 2 - 3 knots. The Mozambique Channel has an average current of 0.25 - 1.25 knots.

Sea Conditions For This Week:

*** In this graphic, the green shading represents a reduced likelihood of small boats and skiffs operating in the area due to harsh sea conditions, while the red indicates a higher likelihood of favorable sea conditions for skiffs and smaller boats ***

24 hr Global Contact: +44 207 754 3555 www.msrisk.com On Land:

• 22 June 2012 - At least six people, including the senior police commander for Somalia’s Transitional Federal Government (TFG), were killed in an ambush carried out by al-Shabaab. Mr. Afrah Ali Afrah was in charge of the recently seized Elasha Biyaha areas on the outskirts of the capital city of Mogadishu where he was appointed as the new TFG commander in chief. Along with the commander, at least two TFG soldiers were killed by al-Shabaab militants who fled after the shootings. At the time of his death, officials said that the commander was attempting to send reinforcements to other TFG troops who were battling al-Shabaab inside Elasha Biyaha. According to TFG reports, three al-Shabaab militants were killed and several others were injured however they managed to escape. Although al-Shabaab fighters were ousted from power in Elasha Biyaha by the African Union peacekeeping forces (AMISOM) and Somali government soldiers, remnants of the terrorist group are believed to be still active in the city and continue to conduct hit and run attacks in the area. AMISOM has since issued a press release saying that they have secured Elma’an Port and Esaley Airstrip in the Middle Shabelle region from al-

Shabaab militants, Caluula DJIBOUTI GULF OF A D E N Breeda Asayita Bandar Murcaayo Gees adding to the list of Djibouti Boosaaso Gwardafuy Saylac Raas (Bender Cassim) Butyaalo strategic locations Dikhil Surud Bargaal Raas Maskan Qandala ceel Raas Ja Raas Binna that the terrorist Silil Khansiir Xiis Maydh Laasqoray Karin D Daho t a Hurdiyo rr Raas AWDAL o group continues to Bullaxaar Berbera Ceerigaabo (Erigavo) BARIB ARI Xaafuun Xaafuun loose as AMISOM Baki SA NAAG Iskushuban K Boorama WOQOOYI arkaar Mountains and allied forces D Burco Dire Dawa GALBEED e Togwajaale r (Burao) Garadag Qardho Bandarbeyla Dudo continue to take Nazret Hargeysa Harer Jijiga Oodweyne Xudun o v e r a r e a s i n Kiridh Taxeex TOGDHEER SOOL E Somalia. Esaley yl Garoowe Buuhoodle Laascaanood Airstrip and Elma’an Degeh Bur NUGNUGAALAAL Raas Gori Rit Gabbac Port, both located Eyl 4 0 k i l o m e t e r s Berdaale Xamure n o r t h e a s t o f ETHIOPIA Werder Beyra Seemade (Galcaio) Garacad Megalo K'ebri Dahar Gaalkacyo Mogadishu, were Imi MUDUG used by al-Shabaab War Galoh Gode Shilabo Baxdo Mirsaale Hilalaya in order to import Mereer-Gur Dhuusamarreeb illegal arms and to Hargele (Dusa Marreb) s h u t t l e f o r e i g n GALGUDUUD Hobyo Ferfer Ceel Huur Ceel Buur ﬁghters from the W Beledweyne Xarardheere e BAKOOL b i

Gulf of Aden into Derri

Dolo Bay Xuddur HIRAANS h IN DIAN OCEAN (Oddur) a Buulobarde b Ceeldheere Somalia. In 2006, e Luuq Tayeeglow e l l e

al-Shabaab banned Garbahaarrey Baydhabo KENYA (Baidoa) SHABELLE h u m a n i t a r i a n GEDO Mahadday DHEXE Buurhakaba Weym groups from using El Beru Hagia Wanlaweyn Cadale Diinsoor BAY Jawhar (Giohar) Baardheere Balcad Esaley Airstrip and Afgooye W e b Muqdisho (Mogadishu) effectively restricted i SOMALIA Qoryooley J Wajir u BANADIR JUBA b b SHABELLE h u m a n i t a r i a n a Marka (Merca) National capital DHEXDHEXE HOOSE a c c e s s t o t h e Haaway Regional capital Baraawe Town, village Bu'aale Somali populations Afmadow Airport l o c a t e d i n t h e Jilib International boundary Bilis Qooqaani Regional boundary Jamaame Middle Shabelle JUBA Undetermined boundary HOOSE SOMALIA Main road region in southern Kismaayo (Chisimayu) Track

Somalia. As such, Isole Railroad Giuba t h i s s u c c e s s f u l 0 50100 150 200 km Buur Gaabo

o f f e n s i v e h a s Raas 0 50 100 mi Kaambooni The boundaries and names shown and the designations used on this map enabled AMISOM - do not imply official endorsement or acceptance by the United Nations. -

t o s e c u r e a n Garsen Lamu extremely strategic e n t r a n c e i n t o

24 hr Global Contact: +44 207 754 3555 www.msrisk.com Mogadishu. Securing the two towns will also curb al-Shabaab’s recent retreat from the Afgoye corridor to keep towns on the Somali coastal line. • 21 June 2012 - Reports have stated that fighters from al-Shabaab briefly seized Beled-Hawo, a town located on the Kenya-Somali border in Somalia’s Gedo Region, after an hour of fighting which occurred between the militants and Somali government soldiers along with ASJW soldiers. At least three TFG soldiers were killed in the fighting when al-Shabaab militants attacked the town at 3:30 local time. The heavy fighting broke out near the front gate of Beled-Hawo’s checkpoint on the route from Luq district. The number of civilian casualties is presently unknown. Sheikh Isaakh Hussein Mursal, an ASWJ official in the region, stated that TFG and ASWJ fighters have left the city in order to regroup and retake the town. ASWJ officials have also stated that al-Shabaab fighters have been based in an area known as Gadoondhaw, located 55 kilometers southwest of Beled-Hawo, and that it is from there that they were able to conduct the attack. • 18 June 2012 - At least one person was killed and several others were wounded after Somali pirates from the Fatxi group fired at each other in the coastal district of Hobyo in the Mudug region on Monday morning. According to reports, the fighting broke out over money issues. Witnesses in Hobyo town said that the fighting continued for several hours in which one pirate was killed. According to the latest reports, the situation in the town has returned to normal as activity has calmed down. The fighting had halted movement of people and vehicles for several hours. The town of Hobyo is believed to be one of a number of pirate hide outs in Somalia where pirate gangs can operate without much interference. The Fatxi Group is a well known pirate group in Mudug region in which a majority of the group’s pirates come from the Sacad clan (Hawiye). The two pirates who shot at each other are from the Nimcaale clan which is a sub-clan of the Sacad clan. The leader of this group is Fatxi, while Xayle Hurde is a commander and their investor is Laaye. Currently the group is holding the MV LEOPARD hostages, a crew composed of four Filipinos and two Danish men, on land in the Hobyo area. However this is not the first time that fighting within this group of pirates has occurred as the relationships amongst them continues to remain fragile and has been marked by in-fighting in the past. In April of this year, the same group fought over hostages after disagreeing on a ransom amount.

Domestic News:

• 22 June 2012 - On 6 June of this year, the principals of Sterling Corporate Services (SCS), which sponsor’s Puntland’s Anti-Piracy Programme, were summoned to a meeting in the UAE in which it was announced that funding for the two-year programme would end and that all expatriates needed to leave Somalia by the end of June. The move came as a surprise since not only had the programme just reached operational status, but it had also initiated raids in Puntland in which pirates along the coast had been forced to retreat. The result of the sudden cut in funds has let a group of around one hundred expats, mostly African and South African, and approximately 800 Somali Marine of the Puntland Marine Police Force (PMPF) stranded with no cash for food, fuel or salaries. At the PMPF base, which is located just west of Bosaso airport, there now sits millions of dollars in heavy construction equipment, fixed and rotary wing aircraft, ocean-going ships, RHIB’s, heavy transport trucks and 4x4 vehicles which have suddenly become idle. The result is that pirates, like Isse Yulux who fled the PMPF, must be breathing a sigh of relief as for the moment, it seems that pressure on pirates in the Puntland region has significantly diminished. However the timing of the cut in the PMPF does not seem to be coincidental as next week, the UAE is hosting their second anti-piracy conference in Dubai while the UN’s Somalia Eritrea Arms Monitoring Group (SEMG) will be releasing their report in early July, in which an early draft, which was submitted two weeks ago for review, was highly critical of the PMPF programme. In the past, the UN has been aggressively attempting to shut down the anti-piracy programme and has published a number of speculative statements pertaining to the real purpose of the programme along with yet to be proven links that the Puntland president is somehow tied to piracy. Despite the hostility from the UN, the Puntland programme had attempted to increase its staff, recruits, equipment and activities. Three major shipments from the UAE delivered thousands of tons of new equipment. Last month, the PMPF went operational against two pirate groups who had hijacked a chemical tanker and large Suexmax oil tanker. Going forward, the status of the programme has not been clearly determined. Although numerous experts and conferences on the subject insist that a sustainable land based approach to ending piracy is the key, there has been very little definition of what that solution would be and even less money in order to create one. There have been some discussions as to another contractor taking over the programme and there is speculation that such a contractor will be more in line with the UN and AMISOM missions and that it will take over the assets until Somalia has a functioning and recognized government in Mogadishu.

24 hr Global Contact: +44 207 754 3555 www.msrisk.com • 20 June 2012 - Leaders from Somalia and Somaliland are due to start the ﬁrst ever formal discussions on the future of the self-proclaimed Somaliland republic. Although Somaliland broke away from the rest of the country in 1991, and continues to strive to be a separate country, it has not been internationally recognized. Mogadishu wants the northern territory to be part of a single Somali state however since declaring independence, Somaliland has enjoyed relative peace in contrast to the rest of Somalia which has been plagued by conﬂict for the past twenty years. The talks are set to take place on the 20 and 21 of June of this year in an undisclosed location near London, United Kingdom. Both Britain and Norway, as well as the European Union, have indicated their desires for the two sides to negotiate a settlement. Somaliland agreed to enter into these talks during the London held conference on Somalia where forty global leaders met in order to tackle piracy, terrorism and political instability in Somalia. However Somaliland’s administration has indicated that its priority is to remain to be separate from the rest of Somalia and that it wants Mogadishu to recognize its independence. Many have questioned the timing of the talks as the mandate of Somalia’s transitional government expires in August when it is due to hand over power to an elected president. Somaliland unilaterally declared independence 21 years ago after the overthrow of Somali military dictator Siad Barree. It is relatively stable and hosts regular elections which have resulted in peaceful transfers of power.

International Developments:

• 23 June 2012 - The United States has warned of an imminent threat of attack in Mombasa, Kenya, which is the second largest city in the East African nation. The US embassy in Nairobi has warned of the possibility that an attack may occur in the Kenyan port of Mombasa and has asked all its government workers to leave. US ofﬁcials have also been told not to travel to the city, which is a popular tourist destination, until 1 July. In the past several months, Mombasa and the capital city of Nairobi, have suffered a series of grenade attacks since Kenya sent troops into Somalia to battle al- Shabaab. France has also warned its citizens to be extremely vigilant if traveling to Mombasa. These warnings came as police stated that they were in the process of questioning two Iranians who were detained over suspected links to a terror network planning bombings in both Nairobi and Mombasa. Throughout the year, al-Shabaab has repeatedly threatened to stage revenge attacks in Kenya. In turn, the Kenyan government accuses the al-Shabaab of being behind various kidnappings on Kenyan soil and of destabilizing the border region. Earlier this year, the African Union force which is backing Somalia’s interim government, was boosted from 12,000 troops to nearly 18,000. It has also incorporated those Kenyan troops that entered Somalia last October in pursuit of al-Shabaab militants.

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