UN Security Council investigators to Somalia document the fascinating business model of the Somalia Sea Pirates in an UN Dispatch.
A basic piracy operation requires a minimum eightto twelve militia prepared to stay at sea for extended periods of time, in thehopes of hijacking a passing vessel.
Each team requires a minimum of two attackskiffs, weapons, equipment, provisions, fuel and preferably a supply boat. Thecosts of the operation are usually borne by investors, some of whom may also bepirates.
To be eligible for employment as a pirate, avolunteer should already possess a firearm for use in the operation. For this‘contribution’, he receives a ‘class A’ share of any profit. Pirates whoprovide a skiff or a heavier firearm, like an RPG or a general purpose machinegun, may be entitled to an additional A-share. The first pirate to board avessel may also be entitled to an extra A-share.
Each team requires a minimum of two attackskiffs, weapons, equipment, provisions, fuel and preferably a supply boat. Thecosts of the operation are usually borne by investors, some of whom may also bepirates.
To be eligible for employment as a pirate, avolunteer should already possess a firearm for use in the operation. For this‘contribution’, he receives a ‘class A’ share of any profit. Pirates whoprovide a skiff or a heavier firearm, like an RPG or a general purpose machinegun, may be entitled to an additional A-share. The first pirate to board avessel may also be entitled to an extra A-share.
At least 12 other volunteers are recruited asmilitiamen to provide protection on land of a ship is hijacked, In addition,each member of the pirate team may bring a partner or relative to be part ofthis land-based force. Militiamen must possess their own weapon, and receive a‘class B’ share — usually a fixed amount equivalent to approximately US$15,000.
If a ship is successfully hijacked and brought toanchor, the pirates and the militiamen require food, drink, qaad, freshclothes, cell phones, air time, etc. The captured crew must also be cared for.In most cases, these services are provided by one or more suppliers, whoadvance the costs in anticipation of reimbursement, with a significant marginof profit, when ransom is eventually paid.
When ransom is received, fixed costs are the firstto be paid out. These are typically:
• Reimbursement of supplier(s)
• Financier(s) and/or investor(s): 30% of theransom
• Local elders: 5 to 10 %of the ransom (anchoringrights)
• Class B shares (approx. $15,000 each):militiamen, interpreters etc.
The remaining sum — the profit — is divided betweenclass-A shareholders.
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