Pirates who hijacked a Dutch ship and its crew near Bargal district have released the ship after the company that owns the ship paid US$ 1, 250,000 ransom.

Eyl district commissioner Said Aw Yusuf told Radio Garowe that pirates had received the ransom payment in the ocean not far from Ely beach.

"After releasing the ship and its crew the pirates left for Dhanaane and Ilig coastal areas near Eyl. Another German owned is still in the hands of pirates along Eyl coast, " said Eyl district commissioner.

The Puntland Minister of State of Security Jama Hersi Farah deplored the decision to pay pirates ransom to secure the release of the ship. Puntland administration will not give ransom to pirates, he said.

The German owned ship was hijacked one month ago. The payment of ransom is believed to encourage pirates to be more daring in their piracy business that affect security along Somalia's long coast despite assurances from the international community that pirates will be dealt with harshly.