LONDON // The British yachting couple held captive by Somali pirates for more than a year were expected to return to the United Kingdom yesterday amid mounting speculation over the ransom paid to free them.
Although press reports have suggested that $1 million (Dh3.67m) was the price of freedom for Paul and Rachel Chandler, well-placed sources in London last night said the Somali government had, in fact, handed over a relatively modest $300,000 to the pirates last week.
Somali expatriates in London said yesterday that they had arranged pledges of £300,000 earlier this year to try to secure the Chandlers' release.
Halim Ali Awaleh, a Somali community worker in London, said that her countrymen had felt guilty over the couple's plight but that the money was not handed over after negotiations with the kidnappers broke down.
Dahir Abdullahi Kadiye, the former owner of a cab company in London, said he oversaw the transfer of more than $450,000 when he led a party of local elders and armed men from the small Somali town of Adado to the Chandlers' undisclosed release point.
Mr Kadiye, 56, who flew with the couple to Nairobi after their release, said he became a negotiator six months ago after his children told him they were ashamed to be Somalian after seeing television footage of the Chandlers' plight.
Filmed by Sky News with the Chandlers in Nairobi, Mr Kadiye, who splits his time between Somalia and his east London home, said: "I am excited about standing next to the Chandlers on TV. This will make my sons very happy."
Mr Kadiye denied that he had profited personally from the release of the Britons.
A rap video made by members of the Somali community in London and sold across the world in the past two months is believed to have raised more than £100,000 for a fund to help secure the Chandlers' freedom.
In June, about $430,000 - raised by the Chandlers' family, friends and donors, including members of the Somali diaspora - was also delivered, although Reuters reported at the time that this had not reached the pirates but had been kept by tribal elders acting as middle men.
Successive British governments have steadfastly refused to countenance the payment of any ransom since Mr Chandler, 60, and his 56-year-old wife were kidnapped when pirates boarded their 11.5-metre yacht, Lynn Rival, as they headed towards Tanzania from the Seychelles in October last year.
After the Chandlers' release, the British foreign secretary, William Hague, reiterated the long-standing British policy of not paying ransoms.
"I think it is right that successive British governments have said we don't make concessions to hostage-takers. But it is also right to do everything else we have done in this case, and that the previous government did," he said.
"We have used our contacts in the region to try to gain information and to influence the hostage-takers. But no British government is going to start paying ransoms for hostages."
However, UK press reports yesterday suggested that, while the bulk of British aid to Somalia is channelled through the European Union and United Nations, £5.5 million was paid to the Somali government earlier this year for a "governance and peace-building programme" that could have been used to pay off the ransom.
But a spokesman for the transitional government in Mogadishu - which controls little beyond the presidential palace, airport and seaport - said that no UK money had been used.
Government sources in London said that reports from the area suggested that the pirates, who had originally demanded $7 million for the couple's release, simply wanted to be rid of the Chandlers after holding them for 388 days.
"Given that they got almost $10 million earlier this month for one commercial vessel, the Chandlers were not a great money-making prospect," a senior diplomat said.
"The pirates have mounting problems with al Qa'eda-linked insurgents in their area and other local difficulties. Additionally, they have had the constant fear of a rescue attempt by UK special forces."
Roger Middleton is an expert on piracy in the Horn of Africa at a London think tank, the Royal Institute of International Affairs. He fears that even paying a modest ransom for the Chandlers' freedom enhances the risks to other yachtsmen.
"There is no doubt that paying ransoms fuels the problem of piracy and, if you map the increase in ransom payments against the rise in incidents of piracy, you will see that correlation very clearly," he said.
"A few hundred thousand pounds is a relatively small sum for holding two hostages for a year compared with what they could have made by hijacking a commercial vessel, but it has still definitely made it worthwhile.
"Pirates would always rather target a commercial ship because they know that's the most profitable option, but if they have been on the water for a couple of weeks and their supplies are running low, they will take anything they can see."
The Chandlers, from the town of Tunbridge Wells in south-eastern England, spent their first full day of freedom yesterday at the British High Commission in Nairobi.
The news was broken to them of the death of Mr Chandler's father while they were being held. In a statement issued on their behalf, they said: "We have just learned that Paul's father died in late July, and we obviously need to come to terms with that.
"We will return to the UK very soon. We do not intend to give any press interviews or make any further statements until we have had time to adjust to the situation and we would appreciate it if you would give us and our families some space, and respect our privacy for the moment."
dsapsted@thenational.ae
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
A cryptocurrency primer for beginners
Cryptocurrency Investing for Dummies – by Kiana Danial
There are several primers for investing in cryptocurrencies available online, including e-books written by people whose credentials fall apart on the second page of your preferred search engine.
Ms Danial is a finance coach and former currency analyst who writes for Nasdaq. Her broad-strokes primer (2019) breaks down investing in cryptocurrency into baby steps, while explaining the terms and technologies involved.
Although cryptocurrencies are a fast evolving world, this book offers a good insight into the game as well as providing some basic tips, strategies and warning signs.
Begin your cryptocurrency journey here.
Available at Magrudy’s , Dh104
Jeff Buckley: From Hallelujah To The Last Goodbye
By Dave Lory with Jim Irvin
Scores
Rajasthan Royals 160-8 (20 ov)
Kolkata Knight Riders 163-3 (18.5 ov)
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
T10 Cricket League
Sharjah Cricket Stadium
December 14- 17
6pm, Opening ceremony, followed by:
Bengal Tigers v Kerala Kings
Maratha Arabians v Pakhtoons
Tickets available online at q-tickets.com/t10
Results
1. New Zealand Daniel Meech – Fine (name of horse), Richard Gardner – Calisto, Bruce Goodin - Backatorps Danny V, Samantha McIntosh – Check In. Team total First round: 200.22; Second round: 201.75 – Penalties 12 (jump-off 40.16 seconds) Prize €64,000
2. Ireland Cameron Hanley – Aiyetoro, David Simpson – Keoki, Paul Kennedy – Cartown Danger Mouse, Shane Breen – Laith. Team total 200.25/202.84 – P 12 (jump-off 51.79 – P17) Prize €40,000
3. Italy Luca Maria Moneta – Connery, Luca Coata – Crandessa, Simone Coata – Dardonge, Natale Chiaudani – Almero. Team total 130.82/198.-4 – P20. Prize €32,000
Results for Stage 2
Stage 2 Yas Island to Abu Dhabi, 184 km, Road race
Overall leader: Primoz Roglic SLO (Team Jumbo - Visma)
Stage winners: 1. Fernando Gaviria COL (UAE Team Emirates) 2. Elia Viviani ITA (Deceuninck - Quick-Step) 3. Caleb Ewan AUS (Lotto - Soudal)
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
TO A LAND UNKNOWN
Director: Mahdi Fleifel
Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa
Rating: 4.5/5
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
Last-16 Europa League fixtures
Wednesday (Kick-offs UAE)
FC Copenhagen (0) v Istanbul Basaksehir (1) 8.55pm
Shakhtar Donetsk (2) v Wolfsburg (1) 8.55pm
Inter Milan v Getafe (one leg only) 11pm
Manchester United (5) v LASK (0) 11pm
Thursday
Bayer Leverkusen (3) v Rangers (1) 8.55pm
Sevilla v Roma (one leg only) 8.55pm
FC Basel (3) v Eintracht Frankfurt (0) 11pm
Wolves (1) Olympiakos (1) 11pm