0
File Attachment15. The draft agreement grants Doggang Daping a seven-year exclusive right to purchase licenses for up to 50 trawlers or purse seiners, while prohibiting other companies of Chinese origin from engaging in fishing activities in Somali waters. With a maximum license fee of USD 250,000 per fishing vessel per year, the potential annual revenue to the Ministry amounts to USD 12.5 million. Given theMinistry’s past practice, this revenue would most likely be diverted into the Ministry’s privateDahabshiil bank account in Djibouti, thereby circumventing the FGS’ Treasury Single Account at theCentral Bank.
16. Paragraph 1 of the draft agreement stipulates that Doggang Daping "may bring its own security with weapons on board [its fishing vessels]” as well as "inside...company offices”. This clause, in essence, authorises the company to violate the Security Council’s arms embargo on Somalia.
17. Paragraph 3 of the draft agreement permits Doggang Daping to fish within six nautical miles from shore, as well as trawl for demersal species such as octopus and scallops. The clause twiceviolates the FGS’ own 2014 Fisheries Law, which requires foreign fishing vessels to remain at least24 nautical miles from shore in order to avoid encroaching on local fishermen; the Law also prohibits the practice of bottom trawling. In addition, the paragraph contravenes an April 2014 agreement between the FGS and Puntland, Galmudug, and the IJA, which held that coastal demersal stocks were to be managed at the regional, not federal, level.13
18. The draft agreement obligates Doggang Daping to pay the Ministry a USD 70,000 "royalty fee” to be used towards "capacity building”. This provision draws parallels to the Monitoring Group’sinvestigation into Soma Oil & Gas Holdings Limited (see annex 2.5), which reveals how the term"capacity building” was employed by the FGS Ministry of Petroleum and Mineral Resources in orderto solicit bribes to ministerial and other FGS officials. However, the Monitoring Group has noevidence that the "capacity building” clause in the Doggang Daping draft agreement was intended to serve the same purpose.
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13 Communiqué of the Somali MRSS Fisheries Working Group, 2-6 April 2014, Beau Vallon, Seychelles.15-16012
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19. As of this writing, the draft agreement had not been signed by either the Ministry or Doggang Daping. Director General Iman told the Monitoring Group that representatives of Doggang Daping had met with the Ministry in Mogadishu in the hopes of obtaining a deep-sea fishing contract, but had been rebuffed.14 However, a 7 August 2015 email from Director General Iman to Doggang Daping,copying Minister Aimoy and other Ministry officials, indicates the Ministry’s eagerness to cement the agreement: Dear Colleagues, Kindly see attached little pit (sic) amended the previous Fishing Agreement Draft Between Somalia and China. Kindly also note that we are ready to final it (sic) as soon as possible.15
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14 Email from Ahmed Mohamed Iman to the SEMG, 21 August 2015.15 Email on file with the Monitoring Group.
S/2015/801
S/2015/801
Annex 2.1.a: Chart of FGS Ministry of Fisheries and Marine Resources licence sales from March-August 2015
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Annex 2.1.b: Remittance advice form for license fees totalling USD 40,100 for the Xin Shi Ji 37and Xin Shi Ji 76, paid by Yushian International Pty Ltd.
S/2015/801
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S/2015/801
Annex 2.1.c: Six-month fishing license for the Xin Shi Ji 76, sold by Director General Iman to agent Simon Chen
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Annex 2.1.d: Ministry of Fisheries and Marine Resources Dahabshiil bank statement from 3 February 2015 to 25 August 2015
S/2015/801
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S/2015/801
Annex 2.1.e: Draft agreement between the FGS Ministry of Fisheries and Marine Resources and Doggang Daping Enterprises Group
3) The Daping Group interesting to fish deep sAeGa RwEithEM6nE/mNiTles away of the fishing coastline and such species may take: Octopus, Squid, Ribbon Fish, Yellow Croakers, Mussels,
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Scallops and they using Trawlers and pursuing vessels for fishing methods for their vessels. The Government of Somalia has its rights and responsibilities for the marine and fisheries.
BETWEEN
THE MINISTRY OF FISHERIES AND MARINE RESOURCES OF THE FEDERAL
GOVERNMENT OF SOMALIA AND DOGGANG DAPING ENTERPRISES GROUP
4) Starting operation will be 2years fishing and research trail Daping group will bring 10
FROM CHINA ON DEEP SEA FISHING AND FISHERIES COOPERATION.
vessels minimum and the second year Daping will use 12 vessels minimum including all
together fishing and research deep sea vessels to understand and getting knowledge for the
fishing assessment on Somali’s Indian Ocean fish species. The start of the third year
The Ministry of Fisheries and Marine Resources of the Federal Government of Somalia and the Daping group will increased to 20-50 vessels and beyond.
Doggang Daping Enterprises Group from China hereinafter referred to as the "Parties”
The Ministry of Fisheries and Marine Resources as first part and Daping group as Second part.
Desiring to strengthen the existing friendly relation and cooperation between the Ministry of Fisheries and Marine Resources of the Federal Government of Somalia and the Doggang
5) The Ministry of fishing will give Daping group the permission of at least 30 to 50 vessels
Damping Enterprises Group from China and their people.
which will be operating and fishing the deep sea fish species in the Indian Ocean of
Somalia.
Considering their common interests and to promote deep sea fishing and foster technical
exploration and capacity building cooperation in the spirit of equality and mutual benefit. 6) Using the fishing nets (mash size) can be no more than 50mm or 5cm as known and
interRneactiognnailzsintagndtahradt.trawler fishing cooperation would lead to common benefits on marine and fisheries and economic development of the parties.
7) Fees of Fishing Permission, the Ministry of Fisheries of the Federal Somali Government
Pursuant to the prevailing laws and regulations in the Somali republic.
can take its fee license monthly or quarterly or yearly whatever they need as usually in
agreements. According to the deep sea fishing, the company must pay the fishing fees
before providing the fishing authorization document without delay for each year and not
instal1lm) eTnthaenSdetchuerifteyesofratheefofirsvheinsgsevlseasseflosllaonwdst:he company's offices in the ground will be given
security-guard by the Somali Government, but the company will pay their allowance and the agreed company may bring its own security with weapons on board which may support inside of their company offices and the fishing vessels. The government of Somalia will
8) The MinsisetcruyreoftheFsisehceuryity- oSfotmhealciaomanpdantyhetoCthoemhpiagnhyesDt asmtanpdinagrdGarnodupif agnryetehdingthahtapthpens to the
lowest ficsohminpganpyriztheeiSnowmhailci hgosvteatrendmethnet wfeilel dsotruecvteurryethfionrg thoeastsraiswt ltehre Canodmpuanrsye. seiners
license fee of the Ministry of Fisheries, such as:
2) The First Party shall provide the Second Party with the authorization of 7 years valid
exclusive agent and permission of fishing trawlers and purse seiners for China(any other! Under 100 tones US $ 75,000 per year
individuals or companies from China shall not be permitted to the engagement of any
! 101 - 250 tones US $ 80,000 per year
fishing activities in the mentioned ocean neither by trawlers nor by purse seiners, otherwise
! 251 - 350 tone US $ 170,000 per year
agreed to the Second Party). And the second part is not permitted for Tuna and Tuna like
speci!es. 351 - 500 tones US $ 220,000 per year! 500 tones & over US $ 250,000 per year
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9) Daping Group will build fishing processing plant center in Mogadishu-Somalia after they finish (the test period exploration which is 2 years).
10) Daping will donate fishing gears to the Somali local fisheries each year. The Daping group will increase the capacity of the Somali fishermen for giving them training and also will give lectures about marine recourses and how to protect the sea for the fishing ministry as a good will return to the Somali people.
11)Dapping pays 70, 000 USD of royalty fee to the Ministry of Fisheries and Marine Resources for support of the capacity building of the ministry and purchase some requirement materials such as of vehicles and this money Daping group will make the payment when they are buying the first fishing licenses from the fishing ministry.
12) In witness whereof, the undersigned, being duly authorized parties respective have signed this Contract.
13) Done in Mogadishu, Somalia on this 25 day of August 2015 in two original copies in the English Language, both text being equally authentic.
Signed by :
MINISTRY OF FISHERIES & MARINE RESORCES ----------------------------- ---------------- Date....................
DOGGANG DAPPING ---------------------------------------
Source: UN Monitoring Group for Somalia and Eretria
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14. The Monitoring Group has obtained a copy of a draft agreement (provided in annex 2.1.e) between the FGS Ministry of Fisheries and Marine Resources and Doggang Daping Enterprises Group, a fisheries company based out of Liaoning, China. The agreeme