An investigative critique
Despite decades of development aid and assistance programmes that promised and promoted economic growth, fiscal independence, sustainable development in Somalia; all available data have thus far seemingly demonstrated a track record of failed policies and chronic dependency on donor assistance and endemic economic recovery failures.
Indeed, that is because the current conditions in Somalia are clearly difficult to engage.
Somalia is in its current state, because of the legacy of colonization that disrupted its traditional clan-based system, complicated on the surface level but even more complex on a much deeper level and intricate issues are contributing to the overall problem.
Social deprivation, economic stagnation, religious extremism, deep rooted poverty, disproportionately high illiteracy and infant mortality rates, corruption, brain drain, lack of public service and Rule of Law; are all key words to unlocking the understanding of a classic failed state such as Somalia.
Therefore, a radical rethink is fast needed. The problem with traditional development assistance is that it relies on a government to government risk and reward model that has historically not generated significant and sustainable opportunities and returns for people on the ground.
Instead, it has tended to promote statist approaches to development that increases control of the market by those in power, create distortions in the economy and new opportunities for corruption, and promote dependence on the very same tool and/ or resource which was initially promoted or used to rescue the prevailing ailment, namely, Aid.
And so, my interpretation of the current responses coming out of the international community led by Great Britain has been one that requires Governments to take high level ownership of the reconstruction and regeneration of the Somali Nation by way of establishing strong collaborative partnerships with immediate stakeholders, and commit to reducing corruption and improving transparency and accountability in Government, hence the focus on Justice and PFM.
I welcome this approach which I believe will promote sustainable economic New Deals/Programmes in such diverse areas as transportation, water and industrial infrastructure, agriculture, education, energy, private-sector development, and capacity building that will in the long run have a lasting effect on not only curbing and eradicating criminal enterprises, but also leave a lasting economic recovery footprint on the ground.
In lieu of this, one of the first such deals to surface recently which follows the aforementioned blueprint pertain the energy sector, which has long been a thorn on the back heel of Somali political consciousness; deserve a closer examination.
On August 6th 2013, the former Conservative Party Leader Lord Michael Howard of Lympne together with close business associates Robert Sheppard and Basil Shiblaq inked a ‘seismic’ (excuse the pun) deal in Mogadishu with the Somali Federal Government to conduct surveys and have first dibs on exploration rights on pre-agreed Somali territorial Energy exploration blocks.
From the outset, one can very well be taken in by the statement issued by Lord Howard which reads in part “…We intend that Soma Oil & Gas’ commitment in Somalia will boost the local economy and generate new opportunities for employment for Somali nationals.”
It is however rather difficult to fathom how a company that was formed merely two weeks ago (22nd July 2013) as of writing this article, with a nominal share capital of £.001, can obtain such lucrative contract licence, let alone revive a stubbornly liberalised, private and unregulated far-flung economy in one of the most failed states on the known planet.
Moreover, upon further examination, it has transpired that the principal founder and executive director of the company, one Mr. Basil Shiblaq has a rather seemingly colourful and chequered past.
Mr. Basil Shiblaq holds three current appointments:
He is a Director (INVESTOR) in the following companies:
* SOMA OIL & GAS EXPLORATION LIMITED
* SOMA MANAGEMENT LIMITED
* SOMA OIL & GAS HOLDINGS LIMITED (S.26.04/2013)
o He has been a Director (INVESTOR) of SOMA MANAGEMENT LIMITED & SOMA OIL & GAS EXPLORATION LIMITED for 1 month
Mr. Basil Shiblaq has resigned from FOUR companies and had involvement in at least TEN DISSOLVED OR BANKRUPT companies:
WEST AFRICAN DIAMOND MINES LIMITED
Company is dissolved
THE MONEY PORTAL LIMITED
In receivership/Administration
OMICRON HOLDINGS LIMITED Company is dissolved
OMICRON HOLDINGS LIMITED
Company is dissolved
WEST AFRICAN HOLDING COMPANY LIMITED
Company is dissolved
UNI-OIL COMPANY (LONDON) LIMITED
Company is dissolved
PRIME OIL (LONDON) LIMITED
Company is dissolved
WEST AFRICAN IRON ORE LIMITED
Company is dissolved
AFRICAN MINERAL RESOURCES PLC
IN LIQUIDATION
WEST AFRICAN TIMBER LIMITED Company is dissolved
Mr. Basil Shiblaq HAS had a direct hand in at least SIX court cases involving Complaint for Securities Fraud, Commodities Fraud, Market Manipulation, Rico, and Common Law Claims dating back to 1981.
PLEASE SEE FOLLOWING CASES:
MOHAMMED FEZZANI, CIRENACAFOUNDATION, DR. VICTORIA BLAND.LESTER BLANK, JAMES AND JANE BAILEY, BAYDEL LTD., MARGARET AND PATRICK BURGESS, BOOTLESVILLE TRUST and ADAM CLUNG. PLAINTIFFS
-against-
BEAR, STEARNS & COMPANY, INC., BEAR STEARNS SECURITIES CORP,RICHARD HARRITON, ANDREW BRESSMAN, ARTHUR BRESSMAN, RICHARD ACOSTA, GLENN O’HARE. JOSEPH SCANNI, BRETT HIRSCH, GARVEY FOX, MATTHEW HIRSCH, RICHARD SIMONE, CHARLES PLAIA, JOHN McANDRIS, JACK WOLYNEZ. ROBER’IT GILBERT, FIRST HANOVER SECURITIES, INC., BANQUE AUDI SUISSE GENEVE, FOZIE FARKASH, RAWAI RAES, BASIL SHIBLAQ, IYAD SHIBLAQ, KEN STOKES, ISAAC R. DWECK, INDIVIDUALLY, AND as custodian for NATHAN DWECK,BARBARA I DWECK, MORRIS I DWECK, RALPH L DWECK, MILLO DWECK, BEATRICE DWECK, RICHARD DWECK, JACK DWECK, ISAAC B. DWECK, HANK DWECK, MORRIS WOLFSON, ARIELLE WOLFSON, AARON WOLFSON, ABRAHAM WOLFSON, TOVIE WOLFSON, ANDERER ASSOCIATES, BOSTON PARTNERS, WOLFSON EQUITIES, TURNER SCHARER, CHANA SASHA FOUNDATION, UNITED CONGREGATION MESARAH. FAHNESTOCK & CO. INC., DONALD & CO., BARRY GESSLER, MICHAEL RYDER and APOLLO EQUITIES. DEFENDANTS
Defendants Isaac R. Dweck, Morris Wolfson, Basil Shiblaq and Fozie Farkash, as well as the individuals and entities affiliated with each of them as identified below (collectively the “Individual Defendants”), are joined as defendants because of their direct participation in A.R. Baron & Co.Inc. (“Baron”) fraudulent schemes.1
NEW YORK STOCK EXCHANGE HEARING PANEL DECISION 81-109, November 18, 1981
An Exchange Hearing Panel met to consider a Stipulation of Facts and Consent to Penalty entered into between the Exchange’s Department of Enforcement and Basil M. Shiblaq, a former registered representative with Merrill Lynch, Pierce, Fenner & Smith Incorporated. Without admitting or denying guilt, Shiblaq consents to a finding by the Hearing Panel that he: I. Violated the principles of Exchange Rule 405.10 in that he caused his member organization employer to carry an agency account without obtaining written evidence of the agent’s authority to act for his principal. II. Violated Exchange Rule 408(a) in that he accepted orders for an account from a person other than the customer without first obtaining written authorization from the customer. III. Engaged in conduct inconsistent with just and equitable principles of trade in that he falsely informed the customer’s authorized representative that the customer had not sustained a net loss from the trading in his account and that his member organization employer carried a credit balance of $106,724.50 which belonged to the customer.2
Bansil Mutei Shiblaq vs Union Of India (Uoi) And Ors. on 17 April, 2007
THE CONVICTED CRIMINAL (FUGITIVE) was detained pursuant to a ‘Red Corner Notice’ issued by the Interpol, on account of a request by the Government of the UAE. Apparently he had acted as investment adviser to a financial company, under the direct control of the Department of Private Affairs of Abu Dhabi. Certain allegations of fraud were levelled in relation to those dealings; these led to claims being preferred before the courts in UK. The charges of fraud were not pressed; initially, the petitioner was held liable to pay some amounts. He carried the matter in appeal in the U.K. Courts, and his counter claim/appeals were allowed. As a consequence, the financial arm of Abu Dhabi, which had preferred the claim, was adjudged liable. In the meanwhile, the Government of UAE apparently held criminal proceedings in absentia, and secured a judgment declaring him guilty.3
BASIL M SHIBLAQ is also named in the following Judgements/Complaints:
* NEW YORK STOCK EXCHANGE HEARING PANEL DECISION 82-67, July 6, 1982.4
* Daad Sharab v Usama Salfiti [1996] APP.L.R. 12/12.5
* Koch v Christie’s, 2010.6
With this in mind, the following preliminary questions remains to be answered, namely, a) can a company without any prior proven track record in the aforementioned energy industry and which was only incorporated in the last two weeks7, be trusted with highly sensitive and valuable contracts without any prior Due Diligence?
And b) is the Principal Founder and Executive Director, Mr Basil Shilbaq, a person fit to lead a process and enter in to an agreement of the nature aforementioned?
If the answer to both questions, dear reader, is a resounding NO, after having read the aforementioned, then I would suggest you put pen to paper and mouth to telephone receiver and sound the alarm for the Somali Nation
that apparently has escaped our elected government and representative officials.
Further checkups are now under way to determine the ultimate beneficiaries in not only Soma Oil & Gas Exploration Limited, but also Soma Oil & Gas Holdings Limited and Soma Management Limited.
1. http://securities.stanford.edu/1038/BSCI99_01/199922_f01c_99793.pdf http://caselaw.findlaw.com/us-2nd-circuit/1630222.html http://federal-circuits.vlex.com/vid/fezzani-v-bear-stearns-434914106 2. http://www.nyse.com/pdfs/81-109.pdf 3. http://www.indiankanoon.org/doc/43164/ http://www.publications.parliament.uk/pa/cm200607/cmhansrd/cm070227/text/70227w0010.htm http://markfieldmp.com/question/basil-mutel-shiblaq/ 4. http://www.nyse.com/pdfs/82-067.pdf 5. http://www.nadr.co.uk/articles/published/ZzzarbitrationLawReports/Daad%20v%20Usama%201996.pdf 6. http://www.scribd.com/doc/33936708/Wine-Chrisite-s-2010-Koch-v-Christie-s-Complaint http://www.nylj.com/nylawyer/adgifs/decisions/050312kochbrief.pdf 7. http://wck2.companieshouse.gov.uk//compdetails