Dubai Ports Deal
4 REASONS WHY DPW DEAL IS HORRIBLE
by:outsource_this_2005 02/23/06 10:46 am
Msg: 57860 of 57902
1. Dubai Ports World, 100% owned by the government of Dubai is not subject to US law, cannot be dragged into US courts, because it is headquartered offshore and owned by a foreign government that will assert soveriegnty (SOVERIGN IMMUNITY) if the need arises. Hence there is no accountability. Documentation relating to security will be in Dubai, which is a class-A dictatorship. That's bad.
2. DPW is not even required to keep business records on US soil. The paper trail for DPW operations in the US will be beyond the reach of US law enforcement. That's very bad.
3. DPW is not required to appoint a US citizen to maintain control of the business records. A US citizen will be subject to US law and extraditable anywhere in the world. A Dubai citizen, manager of a Dubai government-owned entity, will have diplomatic immunity. That's very very bad.
4. People don't realize, and it hasn't been widely reported, that this deal is HIGHLY LEVERAGED. Dubai is floating bonds to close the deal, so if DPW does not find significant cost savings (e.g., replacing American workers with H-1B visa holders imported to US ports the next time the longshoremen try to negotiate a new contract), the deal will make no sense financially. DPW could easily go into insolvency over this. If you don't believe me, do your own research. DPW could technically walk away from the ports .. and guess what? ... DPW's out of pocket cost would be minimal, because most of the purchase price is being financed by bond holders. ARE YOU BEGINNING TO UNDERSTAND NOW? East coast ports are a vital economic and national security asset. This is very very very bad.***
*** You will discover that P&O (the seller) was happy to sell their US operation to PCW (a Singapore-based ports operator, the 2nd largest in the world after Hutchinson Whampoa). Dubai Ports World insisted on making the purchase and bid a figure that PCW couldn't match.
The price DPW is paying MAKES NO SENSE (according to the Singapore firm PCW), IT'S WAY TOO HIGH, which explains the need for the oil-rich kingdom of Dubai to float bonds to close the deal.
Using bonds to finance the deal also INSULATES DUBAI from financial fallout if the deal, for whatever reason, "blows up" later on. SOMETHING ABOUT THIS DEAL IS HIGHLY SUSPICIOUS. DON'T YOU AGREE?
***** People who tell you "DPW is not involved in port security" are liars. The Bush Administration negotiated "special security measures" with DPW in order to approve the deal. Why negotiate "special measures" if DPW isn't involved in security? FELLOW AMERICANS, YOU'RE BEING LIED TO (AGAIN) BY BUSH ADMINISTRATION OFFICIALS.