Maritime Law Specialist Disputes $180 Million Houthi ‘Extortion Charges’ Allegation in UN Document
In a bustling week peppered with captivating headlines, a noteworthy claim has emerged regarding the Yemeni Houthis and their purported financial activities involving the Red Sea. Maritime lawyer Stephen Askins from Tatham & Co is casting a critical eye over these claims, raising a skeptical eyebrow at the notion that the Houthis are banking $180 million a month from maritime companies seeking safe passage through these waters.
Mogadishu (AX) — The swirling rumors suggest that hefty payments are navigated through an intricate web of informal exchanges, reaching the coffers of Houthi leaders. However, Askins is quick to question the plausibility of such a gargantuan sum being exchanged through what the UN describes in their report as informal channels, notably the traditional hawala system.
“It’s been a week full of jaw-dropping stories,” remarked Askins. “Leaving aside the fairy tales about the Houthis dropping their arms following political shifts in the U.S., the story that really caught my eye came from the latest UN Panel of Experts on Yemen report. It alleged that shipping companies have been dishing out gobs of money to the tune of $180 million every month, all presumably funneled straight into the pockets of the Houthis.”
The UN panel, launched under Resolution 2140, has been tracking the movements and financial dealings of the Houthis. Their recent findings point towards substantial sums set in motion, supposedly through intermediaries with ties to high-ranking Houthi figures, spanning across various territories. This alleged network appears to fortify the Houthis’ financial muscle as they intensify threats over critical maritime lanes.
The maritime sector is abuzz following the release of the UN report, which has spotlighted escalating security challenges in the Red Sea.
“I’m knee-deep in this industry,” noted Askins, who brings to the table a wealth of experience dealing with piracy ransoms, the seizing of ships, and negotiations in hostage situations. “That $180 million monthly claim is massive. It’s almost what the shipping industry shelled out in a year to fend off Somali pirates at the peak of that crisis, and those transactions were aboveboard, wearing the insurance industry’s blessing.”
The report lays out an intricate process allegedly involving shipping agencies forking over funds to a company tied to a so-called “high-ranking Houthi leader.” These transactions supposedly happen through the hawala system in various offshore accounts. Moreover, the report hints at an even larger tapestry of alliances, including connections with Iran’s Revolutionary Guard, Hezbollah, and even fringes like al-Qaida and al-Shabaab, enabling the Houthis to wield influence over these vital sea routes.
Maritime security expert Stephen Askins, co-founder of Tatham & Co. Photo: Tatham & Co.
Recalling his own firsthand experiences with the hawala system, Askins noted: “In London, moving small sums is simple. Once, in Athens, I found myself in a dimly lit internet café, seeing two young Somali lads dipping their toes into the hawala waters. The UK keeps tabs on such moves. I’ve moved hefty amounts to pay off Somali and Nigerian pirates.” He added, “Cash isn’t just bulky; it’s also a nosey affair. US$10 million in $100 bills tips the scales at about 100 kilograms. Legal and logistical headaches follow suits like ducks to water.” He argues that such exorbitant transactions, as suggested by the UN report, would likely set off alarms, if not prompt actual intervention.
Even while recognizing the growing security dilemmas, Askins remains dubious about the UN’s reported monthly figure. “If anyone in mainstream shipping was doling out that kind of cash, I’d catch wind of it,” he boldly asserted. “Shipowners are wrestling with whether to chart a course through or detour around the Red Sea, a decision that’s far from cheap. Proclaiming they’d fork over $180 million monthly to a banished group without insurance coverage doesn’t stack up with my knowledge of the industry.”
Sitting strategically at a crossroads, the Red Sea is a vital artery for global trade, linking the Mediterranean to the Indian Ocean. Allegations of Houthi extortion have stirred serious anxiety among international shippers. Some have reported rerouting their vessels around the longer Cape of Good Hope to avoid the risk, albeit at the cost of extra journey time and financial burden.
“Owners are dealing with the dilemma of avoiding those waters,” noted Askins. “The costs are real, as some ships remain anchored, losing charters, which is squeezing wallets hard.” But he remains skeptical about whether these disruptions could spur companies to engage in cash handouts to an outlawed group like the Houthis, especially considering potential repercussions and a complete dearth of insurance recoveries.
“I don’t buy it,” he concluded succinctly.
Nevertheless, the UN report paints a picture of a well-invested and methodically wired Houthi extortion operation. Meanwhile, Washington is tracking whispers of potential ties between the Houthis and al-Shabaab. Though undeniable evidence is yet to surface, such an alliance could fit neatly within Iran’s recurring strategy of empowering proxy groups to counterbalance Western presence in the area. The Houthis’ persistent asymmetric maritime maneuvers continue to pose a thorn in the side of Southern Red Sea security. Photo Credit: AFP
Edited by: Ali Musa
alimusa@axadletimes.com
Axadle international–Monitoring
