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(The Straits Times, 28 October 2013, page B3)
African govt in $56m court case
Djibouti govt seeks assets ex-public official allegedly placed in a trust in S’pore
THE government of a small African country is seeking to recover more than US$45 million (S$56 million) in assets allegedly placed in a trust in Singapore by one of its former public officials.
Mr Abdourahman Boreh was president of the board of directors of Djibouti Port and Free Zone Authority (DPFZA), which was tasked with developing a free trade zone, when he allegedly used his influence to get contracts and commissions for companies linked to him and benefited from the profits.
The Djibouti government is now seeking to trace and recover the money he made while working as a public servant and prohibited from engaging in private business.
In February, Mr Boreh set up a trust here through Portcullis Singapore, to place the shares of a British Virgin Islands company he owned – allegedly for the benefit of his seven children. This company, Net Support, in turn held shares in Horizon Djibouti Holdings – formed to develop the free trade port – allegedly worth up to US$62 million.
Senior Counsel Cavinder Bull, for the Djibouti government, applied at a closed-door High Court hearing here last week to freeze assets in the “Gorgor Trust”, until the Singapore court suit is settled.
The move to set aside the trust is in tandem with a court order obtained in London last month to freeze his assets for a sum of up to US$111.5 million.
The Djibouti government argued his role as a public servant prevented him from holding other private sector posts and earning profits without clearance. Two of his companies – Boreh Holdings and Boreh International – are said to have acquired an indirect 25 per cent interest in Horizon Djibouti Terminal, an oil, gas and chemical storage facility.
The Djibouti government claimed he acquired it thanks to his government role. Mr Boreh denies the allegations and claimed he had the right to operate his own businesses while he was DPFZA president.
The businessman, who is based in Dubai and London, is now a leading opposition political figure.
All seven of his children have been named as defendants in the case, according to court documents.
The Gorgor Trust was allegedly created to put Mr Boreh’s assets beyond the reach of the Djibouti government.
Lawyers from WongPartnership representing Mr Boreh declined comment.
Law firm Rajah & Tann, which is representing Portcullis, said Portcullis is reviewing the High Court decision and taking legal advice.
“No allegations of wrongdoing have been made against Portcullis in the Statement of Claim,” said Rajah & Tann. “The thrust of the dispute is between Mr Boreh and the (Djibouti government), and as such, Portcullis does not intend to take any substantive position in the suit and would act in accordance with legal advice.”
African govt in $56m court case
Djibouti govt seeks assets ex-public official allegedly placed in a trust in S’pore
THE government of a small African country is seeking to recover more than US$45 million (S$56 million) in assets allegedly placed in a trust in Singapore by one of its former public officials.
Mr Abdourahman Boreh was president of the board of directors of Djibouti Port and Free Zone Authority (DPFZA), which was tasked with developing a free trade zone, when he allegedly used his influence to get contracts and commissions for companies linked to him and benefited from the profits.
The Djibouti government is now seeking to trace and recover the money he made while working as a public servant and prohibited from engaging in private business.
In February, Mr Boreh set up a trust here through Portcullis Singapore, to place the shares of a British Virgin Islands company he owned – allegedly for the benefit of his seven children. This company, Net Support, in turn held shares in Horizon Djibouti Holdings – formed to develop the free trade port – allegedly worth up to US$62 million.
Senior Counsel Cavinder Bull, for the Djibouti government, applied at a closed-door High Court hearing here last week to freeze assets in the “Gorgor Trust”, until the Singapore court suit is settled.
The move to set aside the trust is in tandem with a court order obtained in London last month to freeze his assets for a sum of up to US$111.5 million.
The Djibouti government argued his role as a public servant prevented him from holding other private sector posts and earning profits without clearance. Two of his companies – Boreh Holdings and Boreh International – are said to have acquired an indirect 25 per cent interest in Horizon Djibouti Terminal, an oil, gas and chemical storage facility.
The Djibouti government claimed he acquired it thanks to his government role. Mr Boreh denies the allegations and claimed he had the right to operate his own businesses while he was DPFZA president.
The businessman, who is based in Dubai and London, is now a leading opposition political figure.
All seven of his children have been named as defendants in the case, according to court documents.
The Gorgor Trust was allegedly created to put Mr Boreh’s assets beyond the reach of the Djibouti government.
Lawyers from WongPartnership representing Mr Boreh declined comment.
Law firm Rajah & Tann, which is representing Portcullis, said Portcullis is reviewing the High Court decision and taking legal advice.
“No allegations of wrongdoing have been made against Portcullis in the Statement of Claim,” said Rajah & Tann. “The thrust of the dispute is between Mr Boreh and the (Djibouti government), and as such, Portcullis does not intend to take any substantive position in the suit and would act in accordance with legal advice.”
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