Issue link: https://maltatoday.uberflip.com/i/357188
maltatoday, SUNDAY, 3 AUGUST 2014 News 11 MATTHEW AGIUS A Malta-based, industry-leading and highly profitable maritime security company – Gulf of Aden Group Transits (GoAGT) – abrupt- ly closed its doors this week and went into administration, leaving hundreds of employees across the globe in the lurch, some literally at sea. The Seychelles-registered GoAGT and its Maltese company, Maritime Guard Group (MGG) was used by the likes of Shell to provide armed security staff to protect ships and tankers from pirates off the coasts of Somalia. But despite raking in approxi- mately $1 million every month, hundreds of its security employees have been left scattered at sea, af- ter the tier one, maritime security company ceased trading, while al- legedly owing millions in unpaid salaries. Other security officers have been stranded in Djibouti, Mauritius, South Africa and the UAE, all sev- eral months of salaries in arrears, with no way of getting back to their homes without paying thousands in air fares. While its sole beneficial owner, CEO Nicholas Davies, has told the UK Independent that he was trying to sort out a financial black hole af- ter a creditor called in a debt, some of GoAGT's 30 Malta-based staff have been busy finding vessels – unpaid – willing to take the strand- ed guards to other ports for free. While the sudden implosion of GoAGT – whose ISO28007 ac- creditation requires a clean bill of financial health – has rocked the shipping world, it comes as no surprise to many people who have worked there. Former employees who spoke on condition of anonymity recall hap- hazard management, whimsical promotions and knee-jerk changes in company policies. "Promotions, both at sea and on land were often not easily explained and implied menace mixed with blind confusion seemed to be company manage- ment policy," one employee said. Ongoing staff cuts and un-re- plenished resignations at the Malta headquarters added more respon- sibilities on the operational sup- port staff, longer and more punish- ing shift patterns, heavier workload and stress from senior manage- ment. One former employee currently embroiled in a court case with the company, explained: "Alarm bells started ringing after Davis called a full company meeting in 2013 and, in effect, admitted to using company money to fund his oth- er projects. He promised that he would 'repay GoAGT' with all the money that he had taken to start other companies." GoAGT was the brainchild of re- tired RAF helicopter pilot Davis. He founded Anti Piracy Maritime Se- curity Solutions (APMSS) in 2008, being a proponent of sending un- armed teams of 'security advisors' on ships. That was until November 2008, when Davis and two men were protecting the MV Biscaglia when it was successfully boarded by a group of Somali pirates. The unarmed team led by Davis felt discretion to be the better part of valour, so they jumped over- board to avoid capture, much to the amusement of the industry. Unsurprisingly, after this incident Davis became a vocal advocate for armed guards on merchant vessels, heralding a golden age for MAR- SEC. Davis then appointed Cmdr. Gerry Northwood– a former com- mander of the UK counter-piracy task group – as chief officer opera- tions. Northwood's expertise was expected to deliver professionalism and gravitas to GoAGT, but instead Davis alone called the financial shots: striking deals, buying equip- ment, presenting them as a fait ac- compli to his COO, leaving him no option but to pay out. Ex-employees report late pay was the rule, not the exception, the only variable being by how many weeks. In comments to MaltaToday, Northwood said he had resigned over two weeks ago. "GoAGT is in administration. The company was operationally sound, profitable and had one of the best reputations in the industry. CEO Nick Davis was the sole sharehold- er… and had total authority over fi- nance. He worked up $7 million in debt to suppliers, deployed staff, a debenture holder and ultimately to HQ employees on the back of other failed business ventures. As COO I resigned over two weeks ago when I lost confidence in his ability to raise a rescue package and found out the full extent of the debt." Davis spent the last two years set- ting up 888 aero, which for a flat fee of more than £20,000 advises on buying and selling aircraft. He also said he had plans to create 'collec- tion pods' on the high streets for internet shoppers in the UK. Davis remains adamant about the legitimacy of his schemes: he is of- ten seen defending his actions and reputation with contributors on the CloseProtectionWorld.com in- ternet forums. Not two weeks before GoAGT folded, he vehemently denied bankruptcy: "GoAGT is indeed re- structuring over this weekend with new investment and will focus on trying to ensure business conti- nuity… There are pay arrears and these are the ultimate first prior- ity, however I will not address on an open forum individual cases nor remedies. I will state again, I'm not going to keep coming on the forum to justify or explain as currently I'm trying to turn a mess into not such a mess, for the benefit of those that have delivered an outstanding serv- ice both on board and ashore." Anti-piracy firm's implosion leaves Malta staff in the lurch Nick Davies CONTINUES FROM PAGE 1 News of the illegal works being halted emerged from the Polidano Group itself, in replies to questions by The Times on roadworks being carried out by Polidano Group as an access to Montekristo Estates, which spokes- person Sammut decided to publicise with the rest of the media. Sammut denied that the roadworks were creating a new access point to Montekristo. "The road is a pub- lic one, accessible to everyone, and has been there before the group was even established. The only works carried out in this road was using a roller truck to level out inert ma- terial in the area, at the company's expense and for the benefit of the public making use of this road." Sammut claimed there was an agreement with MEPA when it is- sued a permit for its Poligas plant, to provide an access road for emer- gency vehicles to enter and exit to the fire factories behind the plant. "The road improvements, an action of Polidano Group [is] for the ben- efit of the general public." Sammut lost no time in lauding the work of Polidano and his group, which despite numerous abuses and planning enforcement orders issued against it, has hosted numerous events patronized even by the Presi- dent of the Republic, Joseph Muscat on being elected leader of the Labour Party, and government ministers. "Over 100 trucks of soil were add- ed over the past months and hun- dreds of plants and trees were also planted. Over the years the Group has planted over 200,000 trees and plants mostly matured, in the whole area of MonteKristo including citrus trees, carob trees, olive trees, pencil pine trees, Leyland trees and grape vines among others, all Mediterra- nean trees." It is now understood that follow- ing the criminal charges being is- sued over the animal park, Polidano Group has been busy building big- ger housing and zoning areas for the over 2,000 animals it keeps. "Ad- ditional land was required in order to give the animals the largest space and best environment possible," Sammut said. Sammut said that any documents on CITES permits for the animals had been passed over to MEPA of- ficials and an inspection was held on Friday morning. After welfare breaches, MEPA halts illegal zoo works 'The road improvements, an action of Polidano Group, is for the benefit of the general public' Polidano Group lawyer Jean- Pierre Sammut Construction magnate Charles Polidano (right) GoAGT provided armed security against Somali pirates