Feral Jundi

Tuesday, December 21, 2010

Maritime Security: The JLT ‘Private Navy’ Is Close To Kick-Off

      Woollerson would also like to see it involved in trying to remove the causes of Somali piracy through land-based initiatives.

     “I see the CEP as a self-destructing company. Maybe in many years’ time we will no longer be needed and could donate the tonnage to a Somali coastguard,” he said.

     This is a very interesting quote, and actually the entire article below is filled with some great stuff. Bravo to the author for getting the scoop and putting it out there for all to read. Here are my older posts with comments that first talked about this venture.

     Now for my take on the whole thing.  In order for this Convoy Escort Programme (CEP) to be a ‘self-destructing company’, it must take part in destroying their ‘Raison d’être’ –the pirates.  Escorting ships does not alone create this kind of market mechanism. Especially if they only plan on capturing 27% of the merchant traffic going through the GoA, and allowing the pirates to feast on the other 73% of the merchant traffic. If anything the consequence, intended or unintended, will be a higher concentration of armed pirates attacking undefended vessels.

    The other angle on this is that merchants and insurance companies will see how this works, and they too will fire up a similar business model.  That other 73% of the merchant market might shrink pretty fast with a higher concentration of pirates coming down on them, and an increase of insurance backed protective services available to them at a decent price.

    But this is where the quote up top really grabs me, and that is the land based initiatives of this CEP team.  Could there be something going on here, like JLT taking a hint from what is going on with Saracen International and their proposed private militia? I bet JLT wouldn’t mind attracting some of that funding coming from this middle eastern mystery donor either.

    Finally, there is the quote about a reputable flag state sponsoring these CEP vessels, and the concept of a government and military granting them ‘legitimacy’. That sounds like all the makings for a Letter of Marque or some kind of similar license to do what they are going to do. We will soon find out in the coming months exactly what kind of arrangement we have here. –Matt

‘Private Navy’ Is Close To Kick-Off

December 10, 2010

An insurance broker’s plan to create a “private navy” to combat Somali piracy is close to being launched.

Shipowners could be asked to back the project as early as late January or February with private military-escort vessels sailing alongside merchant ships by mid-2011.

A reputable flag state prepared to register the 18 patrol boats has been lined up, shipowner support is being canvassed and preparations made to secure funding for the vessels and crew.

Sean Woollerson of the Jardine Lloyd Thompson (JLT) insurance-broking group says there are still issues to overcome but the key task of securing government and military support to give the project “legitimacy” is almost there.

The venture, now branded as the Convoy Escort Programme (CEP), estimates it needs only £15m ($23.5m) to buy secondhand vessels suitable for use as patrol boats and the rest of the infrastructure.

Greek salvage entrepreneur George Tsavliris is already seeking support from fellow shipowners and Bimco has indicated a willingness to help facilitate the project.

(more…)

Friday, December 17, 2010

Cool Stuff: Green Boots–Koevoet

Saturday, December 11, 2010

Cool Stuff: Principal-Agent Theory

     I wanted to do a quick post on a little bit of knowledge that everyone would be wise to study.  If you want to know why contractors are paid as much as they are paid then definitely wrap your brain around the concept of Principal-Agent Theory and what it all means. It all boils down to ‘ensuring the provision of appropriate incentives so agents act in the way principals wish’.

    By the way, I picked up on this thing while reading a paper that David Isenberg commented on in a blog post. The paper was about Security Sector Reform (SSR) and the author mentioned Principal-Agent Theory towards the end of it. The author did a study on DynCorp/PAE’s SSR mission for DoS in Liberia, and it was an interesting read. Check it out. –Matt

     In political science and economics, the problem of motivating a party to act on behalf of another is known as ‘the principal–agent problem’. The principal–agent problem arises when a principal compensates an agent for performing certain acts that are useful to the principal and costly to the agent, and where there are elements of the performance that are costly to observe. This is the case to some extent for all contracts that are written in a world of information asymmetry, uncertainty and risk.

     Here, principals do not know enough about whether (or to what extent) a contract has been satisfied. The solution to this information problem — closely related to the moral hazard problem — is to ensure the provision of appropriate incentives so agents act in the way principals wish.

     In terms of game theory, it involves changing the rules of the game so that the self-interested rational choices of the agent coincide with what the principal desires. Even in the limited arena of employment contracts, the difficulty of doing this in practice is reflected in a multitude of compensation mechanisms (‘the carrot’) and supervisory schemes (‘the stick’), as well as in critique of such mechanisms as e.g., Deming (1986) expresses in his Seven Deadly Diseases of management. A distinct and relatively new meaning of the principal–agent problem describes the landlord-tenant relationship as a barrier to energy savings.

     This use of the term is described below in the section on the principal–agent problem in energy efficiency. The problem is also discussed in terms of “agency theory”.

Wikipedia for Principal-Agent Theory here.

Somalia: Donor Set To Fund A Second Anti-Piracy Force For Land Operations In Mogadishu

     On Friday, Prosper and two other Americans, former army officer Michael Newton and lawyer Robert O’Brien, gave a presentation to the international community about the proposed projects.

     But diplomats said the presentation raised more questions than it answered. They said they didn’t know how the force would be deployed, how it would be integrated with current efforts to reform the security forces or how it would work with international antipiracy navies. The diplomats did not want to be identified because they are not authorized to appear in the press.

    And Saracen International will be doing the training for this as well.  So this is turning into quite a deal and I am surprised by the lack of media coverage on this. This mystery donor is putting up a ton of cash for an all out war against these pirates.

    One of the questions on my mind about this is if this force will be fighting any jihadists?  Because if this mystery donor is from the middle east, I wonder if their intention is to try and lure some of these jihadists away from their attacks on the government and AMISOM, and get them focused on eradicating piracy? Or do they intend to fight these holy warriors along the way, and especially if some of them are moonlighting as pirates (jihadist privateers)?

    Finally, I certainly would hope that Prosper and his gang lawyers would be so kind as to provide little ol’ bloggers like myself a copy of this presentation so we can comment on the thing. I also wonder if there is any talk of joining forces with the insurance companies and  their planned use of private security for this anti-piracy war? Interesting stuff and stay tuned. –Matt

Edit: 12/13/2010- Here is an interesting angle on the whole deal. That Saracen could be a threat to the AMISOM mission, by giving an impression that Uganda is not at all interested in stability in Somalia. That they care more about making a profit I guess. Thanks to a reader for sending me this.

Salim Saleh’s Saracen training militia in Somalia

December 13 2010

Saracen International, a security company associated with Uganda’s Gen Caleb Akandwanaho, alias Salim Saleh, a senior advisor to President Yoweri Museveni, who is also his younger brother, has come under the international spotlight for its alleged involvement in training militia in Somalia’s semi-autonomous Puntland state.

Intelligence sources told The EastAfrican that President Museveni’s younger brother’s interest in this private military contractor has major regional security implications that could affect the efforts to restore peace in Somalia.

Last week, the Associated Press reported that a well-equipped military force was being created in northern Somalia with the help of Michael Shanklin, a former CIA officer and Pierre Prosper, an ambassador-at-large for war crimes issues under former President George W. Bush.

The training and the equipment — which is so far estimated at over $10 million — is being paid for by a mysterious “Muslim nation.”

These sources said that this deal usurps the mandate of the African Union Mission in Somalia (Amisom), which includes security training. Ironically, Uganda has the most troops in Amisom, with the rest coming from Burundi.

The source said that the African Union is concerned that Saracen’s advent could be a propaganda gift for Islamic fundamentalist groups like Al Shabaab, because they can argue that Amisom is in Somalia to make profits and do business, not to bring peace.

“If this is not nipped in the bud, it could bring the roof down on the head of the AU in Somalia because Uganda has the largest contingent there,” he said.

The revelation comes at a time when some AU officials and members are allegedly concerned about how Uganda is handling the affairs of its troops in Somalia.

The Amisom troops are paid $750 a month. Uganda docks  $200 from each soldier. Burundi, on the other hand, takes off the recommended $100.

It is understood that the AU, fearful that this could demotivate the troops, has complained to Ugandan authorities, who have agreed to deduct the standard $100 only from each soldier, and refund the rest.

Our source also said that there is “grumbling” in the AU that Uganda, because it went in with the most equipment, has already been compensated more than handsomely for use of its resources — nearly $28 million so far, compared with $170,00 for Burundi.

Story here.

Somalia mulls privately trained antipiracy force

12/10/2010

Somalia is considering allowing a private security company to train a 1,000-man antipiracy force in the capital of Mogadishu, a Somali official said Friday. It would be the second such unit funded by an unidentified country — a project that has raised eyebrows in Washington and in the U.N.

The security company, Saracen International, is already training a different 1,000-man force in Somalia’s northern region of Puntland. The project is being funded by an unknown Muslim country that those involved in the project — including and former U.S. ambassador and a former CIA officer — will not name.

Somali Ambassador Mohamed Ali Nur told The Associated Press the Mogadishu force would hit the pirates on land, where their havens are out of reach of a multinational naval armada which has tried to protect international shipping.

The Somali government will decide in the next three weeks whether to have Saracen train the antipiracy force in Mogadishu, Nur said. Another program to train up to 300 men for the presidential guard is also being considered.

If approved, that could mean up to 2,400 men would be trained by Saracen International. The mystery donor has also promised to pay the men and equip them with everything except arms. The total cost of the project is unclear. A European Union-led program to reform the Somali army is training and paying for 2,000 men at a cost of around $13.2 million, indicating that at such a level of expenditure, the anonymous donor nation has deep pockets.

(more…)

Friday, December 3, 2010

Industry Talk: US Concerned By Somali Private Military, CEO Of Saracen International Claims It’s Not Them

     AP named the private security company involved in training the troops as Saracen International, a Uganda-based firm headed by a South African former special forces soldier called Bill Pelser. In a November statement the Puntland government said Saracen had been hired to establish its “marine forces”, while documents from the Somali presidency this year suggested the company had been hired to train the presidential guard in Mogadishu.

     But in a phone interview, Pelser told the Guardian claims of his company’s involvement were “bullshit”, and said he would take legal action against the media. “I have already given a statement to the UN security council on this. None of my assets are involved in Somalia. It must be another company called Saracen,” he said. -story here.

     Pelser denied being involved in the training program in Puntland or the one for the presidential guard in Mogadishu, saying he merely made introductions for another company called Saracen Lebanon. Lebanese authorities have no record of a company called Saracen. Pelser did not respond to requests for contact information for Saracen Lebanon.

     This story just came across my radar, so I am still trying to piece together what’s what.  Although unlike the main stream media, I will give Mr. Pelser the benefit of the doubt and trust that his company is not involved. He says that there is another company called Saracen Lebanon that is training this militia for anti-piracy operations.

    It also seem this militia is being privately funded by a donor from the middle east. This donor is also providing ‘120 new pickup trucks and six small aircraft for patrolling the coast’. That’s impressive, and I would be very curious as to who this mystery donor is and what kind of aircraft they are willing to provide?  If anyone has details, please feel free to expand in the comments.

    The folks that Puntland hired for keeping everything straight are interesting as well. Pierre Prosper was one of them, and this guy is like a legal super star for everything Africa.  He was hired by the Bush Administration to deal with the various war crimes issues in Africa. I am sure he knows what company is being used too.  Check out the link to his profile at the law firm he works at, and you will get an idea of what he is all about. Like I said, if anyone has anything to add, feel free to correct the record or add to this post so we can get the story straight. –Matt

Edit: 12/4/2010- This is interesting.  The president of Puntland was recently questioned by reporters about this anti-piracy force, and he says they will do what they have to do to raise this army and get them trained. So he is not denying or backing down.

(a portion of this article posted below)

Somalia: Puntland pres meets Kuwait emir, defends anti-piracy force

3 Dec 3, 2010

……Anti-piracy force

Puntland’s leader said that the government of Puntland “will not seek approval” from anyone when it comes to security matters.

“For nearly two years, we have requested the international community to help us establish anti-piracy troops and to construct monitoring stations along Puntland’s coast to fight pirates…but we received no answer,” the president said.

He indicated that there are “questions” about Puntland’s agreement with Saracen International, a South Africa-based maritime security company that inked a deal to train anti-piracy troops in Puntland last month.

“What is important is that Puntland improves its security. Without sufficient security, there can be no investment because investment depends on security and stability,” Puntland’s leader said.

He noted that the anti-piracy troops, which are to number 1,050 soldiers when training completes, will still need equipment and telecommunications gear in order to commence the fight against Somali pirates who threaten the world’s shipping lanes.

President Farole said that only African Union peacekeepers (AMISOM) are allowed to bring weapons to Somalia under U.N. regulations, adding: “We will continue to seek equipment and other support for our anti-piracy troops when training completes.”

He indicated that the Puntland-Saracen agreement is “in the spirit of the Istanbul Declaration, which encourages public-private partnerships” for Somalia.

Link to story here.

US concerned by Somali private military

1,000-man militia being trained in north Somalia

Somalia: Puntland signed an agreement with Sarecen Company to train its Marine Forces

US concerned by Somali private military

By MATTHEW LEEThursday, December 2, 2010

The Obama administration raised concerns Thursday about a private military force aimed at combatting piracy in northern Somalia’s semiautonomous Puntland region.

State Department spokesman P.J. Crowley said the U.S. has been aware of the operation, but is not involved in any way. He said the U.S. has unanswered questions about the backing and purpose of the project, which has begun training an armed force of up to 1,050 men in Puntland.

“We are aware that Puntland authorities have contracted with a private security company to assist them with counter-piracy in the region,” Crowley told reporters. “We were not consulted about this program. We are not funding it. We are concerned about the lack of transparency regarding its funding, objectives and scope.”

Crowley said the U.S. is seeking more information about the force, which officials in the region say is being trained by a private security firm called Saracen International.

(more…)

« Newer PostsOlder Posts »

Powered by WordPress