The government of Djibouti has launched an arbitration case in London against DP World, alleging that the Dubai-based ports operator paid bribes to secure a concession at the Doraleh Container Terminal on the Horn of Africa.
The government said that it had rescinded DP World's 20-year concession at Africa's largest container terminal after uncovering evidence of corruption dating back to 2000, when the company won the contract, reported The Times.
DP World, which operates more than 65 port terminals on six continents, including the US$2.57 billion London Gateway, rejected the allegation and said that it would "vigorously defend our position during the arbitration procedure".
At the heart of the case is a long-running feud between President Guelleh and Abdourahman Boreh, the country's richest and most influential businessman. Now living in semi-exile in Dubai, Boreh was chairman of the Djibouti Ports and Free Zone Authority until to 2008, when the Doraleh terminal opened under DP World's management.
Djibouti said in a statement that it had uncovered evidence that "DP World paid bribes and gave other financial incentives to Boreh while he was negotiating the Doraleh Container Terminal concession agreement with DP World". Djibouti alleges that the bribes were paid through overseas shell companies.
DP World, which generated $604 million in profits last year, said it would continue to operate the Dolareh terminal during arbitration.
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