Nakheel denied 2010 reports that the islands were sinking into the sea as wholly inaccurate. Despite the denial, The Daily Telegraph reported in January 2011 that an independent company, Penguin Marine, provided verification on the erosion of the islands and the silting of the passageways between the islands. Due to finance and technical problems, Penguin Marine, the company contracted to provide transportation to the archipelago, is attempting to get out of the annual fees of $1.6 million paid to Nakheel properties.