Release of British Couple Could Mean More Investment in Maritime Piracy
The following is a guest blog post by the Texas Maritime Lawyers of Schechter, McElwee, Shaffer & Harris, L.L.P. This worldwide Jones Act law firm has handled personal injury cases for over 45 years.
Last week, a British couple who had been held hostage by a gang of Somali pirates, was released after a ransom of 500,000 pounds was paid. Members of the gang have announced that they will use much of this bounty to reinvest in the business. It's a sign of the formidable challenge that antipiracy efforts face.
The husband and wife were taken hostage while they were on their way from the Seychelles to Tanzania in their 38-feet yacht Lynn Rival. They were taken hostage in October last year, and since then, have been in the custody of the pirates. All this while, their family and friends back in Britain have worked hard to raise the funds to free the couple. Most attacks involving pirates that are reported in the media involve large vessels that are owned by shipping companies with deep pockets. Raising ransom payments is not a problem for these companies. However, the couple that was kidnapped here, is far from wealthy. According to some reports, the Somali government added to the ransom amount that was collected by family, friends and well-wishers.
According to some of the pirates, they will use the funds to buy new boats to go back into the ocean. They plan to reinvest some of it back in their piracy “business.” Others are planning celebratory purchases, like new cars and houses. In fact, disagreements by the gang over sharing the ransom, delayed release negotiations for several months.
According to certain sources, much of the money will be sent to brokers who had initially put up the money for the gang to begin their pirate activities. Some of the money will go to the people who supplied fuel and water while the pirates were at sea, and paid bribes to local officials when the hostages were brought on shore. The actual pirates who launched the attack on the yacht will also earn a hefty amount from the ransom.
Thanks to limited action by shipping companies, the piracy industry is thriving during a recession.
The maritime attorneys at Schechter McElwee Shaffer and Harris represent injured maritime workers in maritime and offshore accidents across the globe. For answers to your Jones Act and maritime piracy questions, contact the offshore injury lawyers of Schechter, McElwee, Shaffer & Harris, L.L.P. at info@smslegal.com or visit them on Facebook.
Comments
Whilst Somali piracy is the news headline, the predicament of the failed state remains the root cause of the problem. Unlike some of the more recent failed states, Somalia has no 'desirable' natural resource.
The pirates are notoriously difficult to deal with for two main reasons; those who take the local drug - 'khat' which only makes them more dangerous, and the increased ransom demands by the pirate chiefs/warlords as they hear of higher payments received by other pirate clans.
The fact that many pirates are released by the international navies following arrest and destruction of the skiffs, only encourages them to continue in a highly lucrative venture. The excuse of protecting Somali waters is no longer used; why should they bother when the insurance and shipping industry take the gamble of capture which is a very small percentage in terms of those taken. The real losers in this case are those held hostage, and their respective families, for ever increasing periods of time. Whilst there is a huge return of small investment, for the pirates, negotiators and fixers, Somali piracy will continue. Now, what about West Africa?
Posted by: Glen | November 23, 2010 10:13 AM