PM Says No Evidence of Illegality but Fires Ambassador Johann Hesse Over Undisclosed Commission
Prime Minister Gaston Browne says he does not believe Ambassador Johann Hesse engaged in any illegal conduct, but confirmed that Hesse was fired after failing to disclose a $450,000 commission paid to his business partner in connection with the 2024 sale of the Alfa Nero yacht.
Speaking for several minutes on his Browne and Browne programme on Pointe FM, Browne said Cabinet carefully examined the circumstances surrounding the commission and concluded that “on the face of it” the transaction did not appear to be corrupt.
“There’s no evidence of illegality,” Browne said, explaining that Hesse and his business partner, Rufus Gobat, claimed the payment arose from a longstanding private business relationship with U.S.-based brokerage firm Northrop & Johnson.
According to Browne, the government had “absolutely no knowledge” of any arrangement between Northrop and Hesse or Gobat during the sale process. He said the matter first surfaced months ago when legal correspondence from U.S. attorney Martin De Luca alleged that members of his family benefited from a commission related to the sale.
“At that time, we thought it was a total fabrication,” Browne said, noting that neither he nor Cabinet had been informed of any such payment.
The prime minister said the government formally mandated Darwin Telemaque to pursue the yacht’s sale and held no discussions with Hesse or Gobat about representing the state.
“We never held any discussion with them about representing the government,” Browne said. “Again, we just have no knowledge of that transaction.”
The existence of the $450,000 commission only became clear, Browne said, after documents were filed in court indicating that Hesse and Gobat had benefited from the payment.
During a Cabinet meeting last Wednesday, Hesse appeared with Gobat online to explain the situation. Browne said Hesse stated that Gobat had maintained a relationship with Northrop for over a decade and that Northrop agreed to pay them 25 percent of its net commission for introducing a client.
The prime minister emphasized that the government’s payment to Northrop — negotiated down from an initial nine percent demand to five percent, or roughly US$2 million — was standard practice when dealing with a broker.
“It’s standard operating procedure that when there’s a broker, they have to be paid a commission,” Browne said, adding that the government acted appropriately in paying Northrop.
He said the arrangement between Northrop and Gobat was a private matter of which the government had no prior knowledge and could not speak definitively about how it was structured.
Browne said Cabinet also reviewed claims that Gobat collected the funds, declared them to U.K. authorities and paid taxes on the earnings. While he said he suspects Hesse may have benefited from the arrangement, he acknowledged that Hesse described it as part of the way he earns a living.
According to Browne, Hesse explained that he and Gobat operate what he described as a “concierge service,” providing services for commissions. Browne noted that Hesse has served as an unpaid ambassador to the African Union since 2014 and does not receive a government salary.
“He said that that is how he makes his living,” Browne told listeners.
Despite finding no evidence of corruption, Browne said Cabinet took issue with Hesse’s failure to disclose the commission sooner, especially given that the matter had been circulating publicly for months and was referenced in legal filings involving the government.
The prime minister said earlier disclosure would have allowed the government to respond more accurately instead of dismissing the claims as fabricated.
“At least he could have said to us,” Browne said, explaining that Cabinet believed Hesse had an obligation to notify government officials once the matter entered the public domain.
As a result, Browne said Cabinet decided last Wednesday to relieve Hesse of his ambassadorial appointment.
“So what the Cabinet decided last Wednesday was to relieve him of his ambassadorial appointment,” Browne said, adding that he is uncertain whether any further action can be taken.
“It’s just an issue that we felt that he should have notified some of the members,” Browne said.
He reiterated that there is no evidence the transaction involved public funds beyond the government’s standard brokerage commission payment to Northrop.
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