Somali Pirates: How Ransom Collected is Spent

by OldSailor on December 7, 2008

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Piracy in Somalia is increasing. Why ??? Somali_piracy

Piracy in Somalia is well coordinated and it is interesting to note how the ransom collected is spent:

  • Pirates involved in hijacking keep only 30 percent.
  • Pirates’ bosses keep 20 percent.
  • Government officials take 30 percent.
  • Remaining 20 percent is spent for future operations like: buying weapons, communication equipment, vehicles etc.,

Here is a pie chart showing the distribution.

somali_pirates_ransom

Source: Spiegel Online

Post in MarineBuzz on this day a year before:

Flying Fish of University of Michigan Undergoes Successful Sea Trials

Update: May 29, 2009

Pirates operating in waters off the Somali coast earned up to $150 million in ransom payments in 2008. Read more from RIA Novosti.

Update: June 16

Here is the new simplified formula for ransom distribution.

  • The financier, usually a businessman who sponsors the piracy, gets 30% of ransom collected.
  • The pirates directly involved in the piracy at sea, get 50% of ransom collected.
  • The shore support team involved indirectly in the piracy, gets the remaining 20% of ransom collected.

To know more, view an interesting video clip from Al Jazeera: Lucrative raids lure Somali youth to piracy – 15 June 09

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