Gold rush in Djibouti, but who benefits most?
Djibouti with population less than one million, it should take full advantage for its strategic position, modern ports, supposedly lucrative land lease with French and Americans military bases, and on top of that the newly discovered natural resource, well with proper management Djibouti should be well off from the rest of the region. Djibouti shouldn’t be heavily dependent on artificial foreign aids by mishandling that we already have.
As we all know, there is no accountability as to where the money goes from the various intuitions and major contracts. The mediocre management style of Piggy is costing the average Djiboutian dearly. By now it’s obvious for the concerned parties, how poorly Piggy had negotiated with DP World and U S military base in Djibouti without any consideration of national interest.
The last contract with Stratex International (an exploration and development company focusing on gold and high-value base metals in Turkey, Ethiopia and Djibouti) is sham, the simplicity of the contact that satisfied the Djibouti government is ridiculous to say the least, it even prompted one the Stratex negotiator to say “Stratex has been well received by the authorities in Djibouti. The license terms, and legal and fiscal conditions are competitive whilst the Minister and Secretary General of the Ministry of Energy and Natural Resources have also been very supportive”. This kind of statement is not what you expect from somebody that you are negotiating with, what suppose to be a very complicated national interest click here for the raw deal.
Strangely enough, the regime settled only 5% of the stake for any future earnings of its national wealth the same amount 5% for Don Gustafson’s Green River Geology company just for its discovery only and the remaining whopping 90% for Stratex, no wonder the owners of Stratex wasted no time to praise Piggy and his dodgy government, off course we know Piggy love to be praised and attention and as always Djibouti people get wrong end of the stick.
By comparison turkey and Ethiopia didn’t just give a simple license with least possible interest as the case maybe in Djibouti. The other States foraged a Joint Venture with Stratex. For instance Partnership with Sheba is created in Ethiopia with properly negotiated contract click here
If the government of the day is looking after the national interest of all Djibouti, at least it would have invested the license fee back to the project by creating a crown corporation, however that way the regime could have acquired more shares for the benefit of its citizens, but unfortunately the regime as always had already embezzled the license fee of the said project.