Aktis Strategy Limited Terminates Partnership with AMISOM and Federal Government

Mogadishu-09/04/2019- (Somaliland.com ): Aktis Strategy Limited (UK) has unexpectedly discontinued its consultancy partnership with both the Federal Government of Somalia and the AMISOM.

Aktis Strategy was implementing stabilization programs in war-torn Somalia in partnership with the African Union Mission in Somalia (AMISOM) and the British funds.

Aktis Strategy is a for-profit British development and consultancy contractor specialized in conflict resolutions and managing security-related projects.

Aktis Strategy has been actively working with the British Foreign and Commonwealth Office (FCO) for security and reconciliation projects throughout Somalia.

FCO was its biggest client, mostly through the controversial cross-government Conflict, Stability and Security Fund (CSSF) program. It also did work for the U.K. Department for International Development, as well as the Home Office, the Dutch and Danish governments, the European Union, the United Nations, and the U.S. Department of State.

Aktis Strategy was in Somalia since its inception in 2013 and was working to build the capacity of the Somali Police Force,under mandate of former President of Somalia Hassan Sheikh Mohamoud.

Similar to that, Aktis Strategy was co-managing Early Recovery Stabilisation Project in Newly Recovered Areas from Al-Shabaab. The project budget was more than one million Pounds (£1million).

It was aimed to address drivers of community insecurity in areas of Somalia that are new or recently recovered from Al-Shabaab.

The Aktis was providing support in a number of ways, including building capacity within the African Union Mission in Somalia (AMISOM MHQ), the African Troop Contributing Countries (TCCs) in Baidoa and Kismayo and the Somali National Security Forces (SNSF) by engaging with both local and international actors, including through diplomacy, to influence the overall approach to stabilisation.

Aktis Strategy in Somaliland:

Aktis Strategy Ltd, with Axiom Internation Ltd, also implemented similar CSSF projects in Somaliland. The notable projects include the development of Somaliland Army Code of Conduct, built military junior accommodation block, Police training on crime scene investigations (CSI) and handed-over first CSI vehicle to Somaliland Police Commissioner.

Aktis Strategy Ltd faces insolvency:

A three-page document and an email sent to staff by the directors at the beginning of March, and seen by Devex, Development News Website, indicated that the company had recently lost a number of major contracts, including from FCO, but did not say why. There had been an audit of its work in Iraq last year, although Rathmell said they had subsequently been given “a clean bill of health by the FCO and its external auditors.”

Aktis’ financial woes were further exacerbated by having to pay £597,000 to a former director, Matthew Waterfield, in 2017, according to the company’s annual report. Waterfield filed for breach of contract and unfair dismissal but it was settled out of court.

Aktis’ cash flow problems started to emerge in the fall of 2018, according to the note, and nosedived toward the end of the year. In a bid to save the situation, in late 2018, the company brought in a new finance manager and cut nearly half of its staff.

Nonetheless, the financial situation was worse than anticipated, the note to staff said. In a last-ditch attempt to stay afloat, the company hired external advisory firm ReSolve in February to come up with a rescue deal, but it was rejected by Aktis’ funders, Rathmell told Devex.

“When it became evident that clients and investors could not see eye to eye on a way forward, the board had no choice but to seek support from administrators. Hence, Aktis went into an insolvency process at the start of March,” he wrote in an email to Devex.

He added that the company’s projects had been paused due to the insolvency process and that Aktis was now “seeking to work with clients to ensure a smooth transition of projects and to minimise disruption to delivery.” The email sent to staff two weeks ago said that FCO and Aktis’ other funders were looking to hand over Aktis’ contracts to alternative service providers.

Devex spoke to a number of former Aktis staffers, who asked to remain anonymous for professional reasons, who said that some had not been paid since August. Others said that Aktis’ suppliers were also out of pocket.

A number of former employees said they were pursuing legal channels to try to recover lost earnings.

An FCO spokesperson said they were unable to comment at this time.

“The government has a small number of contracts with Aktis Strategy Limited. We are unable to comment on any speculation about Aktis’ financial position,” they wrote in an email to Devex.