Press Center | Freight Shipping Logistics News
Nov 17, 2010
General
caxias
A local bank has been stopped from transferring its client’s funds, which was to act as compensation for ransom paid to Somali pirates.
A local bank has been stopped from transferring its client’s funds, which was to act as compensation for ransom paid to Somali pirates.
Diamond Trust Bank Kenya was ordered not to release Sh8,168,880 ($102,111) to three Singapore registered companies, after the client, Abson Motors, claimed the money was being demanded to abet the crime of piracy.
Abson Motors, among other importers, had imported cargo from Singapore, but the ship contracted to deliver the consignment was allegedly hijacked by pirates and its owners, Pacific International Lines PTE Ltd, were compelled to pay a ransom of Sh240 million ($3.3 million) to secure the release of the vessel, her cargo and crew.
Other expenses that came with the payment of ransom were negotiators’ and lawyers’ fees.
The importer, through the firm of Kinyua Muyaa, is now under duress to agree to have the funds referred to as ‘general average’ released to Habib Bank in Singapore, after which they will be remitted to Marine Claims office of Asia, which negotiated with the pirates.
However, the importer says it was not informed of the alleged seizure of mv Kota Wajar, and only came to learn about the incident in January after it had been released.
For that reason, Mombasa judge Jackton Ojwang’ was told that it would be inappropriate to compel the importer to pay the cash to third parties since it has not been established that the Sh240 million was paid to the pirates.
Further, piracy is an offence both under the Kenyan Merchant Shipping Act and the Singapore Penal code.
It is also an offence under the 1988 Rome Convention for the Suppression of Unlawful Acts against the safety of Maritime Navigation, to which Kenya is a signatory. The case will be mentioned on December 7, 2010.
Diamond Trust Bank Kenya was ordered not to release Sh8,168,880 ($102,111) to three Singapore registered companies, after the client, Abson Motors, claimed the money was being demanded to abet the crime of piracy.
Abson Motors, among other importers, had imported cargo from Singapore, but the ship contracted to deliver the consignment was allegedly hijacked by pirates and its owners, Pacific International Lines PTE Ltd, were compelled to pay a ransom of Sh240 million ($3.3 million) to secure the release of the vessel, her cargo and crew.
Other expenses that came with the payment of ransom were negotiators’ and lawyers’ fees.
The importer, through the firm of Kinyua Muyaa, is now under duress to agree to have the funds referred to as ‘general average’ released to Habib Bank in Singapore, after which they will be remitted to Marine Claims office of Asia, which negotiated with the pirates.
However, the importer says it was not informed of the alleged seizure of mv Kota Wajar, and only came to learn about the incident in January after it had been released.
For that reason, Mombasa judge Jackton Ojwang’ was told that it would be inappropriate to compel the importer to pay the cash to third parties since it has not been established that the Sh240 million was paid to the pirates.
Further, piracy is an offence both under the Kenyan Merchant Shipping Act and the Singapore Penal code.
It is also an offence under the 1988 Rome Convention for the Suppression of Unlawful Acts against the safety of Maritime Navigation, to which Kenya is a signatory. The case will be mentioned on December 7, 2010.
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