Wednesday, August 20, 2014

The Somalia and Eritrea monitoring group uncovers a web of deceit and financial mismanagement

The Somalia and Eritrea Monitoring Group, UN-SEMG, has finally published its much-awaited report on the Federal Government of Somalia’s (henceforth FGS) dubious and exclusive contract with Shulman Rogers, a US Law Firm, for the recovery of Somali national assets frozen overseas. Ironically, this is the same contract that triggered the abrupt resignation of Yusur AF Abrar, the former governor of the Central Bank of Somalia, barely a few weeks after her appointment to the post. As a conscientious person, Yusur smelt a rat and immediately rendered her resignation from afar, Dubai. In here resignation letter of 30th October 2013, Yusur Abrar stated, referring to Shulman Rogers contract: “From the moment I was appointed, I have been continuously asked to sanction deals and transactions that would contradict my personal values and violate my fiduciary responsibility to the Somali people as head of the nation’s monetary authority”. This is a damning indictment to President Mahmoud. People who were allegedly pushing her to sanction such dubious deals turned out to be none other than the President himself, together with his trusted former NGO colleague and former foreign minister, Fawzia Haji Adam.
For those who are familiar with the behavior and conduct of the current FGS on issues related to public finance management, it is business as usual. For the donor communities, however, the report is a bitter pill to swallow as they tried their level best, over the past few years, to make this government afloat and promised millions of dollars of development fund in Brussels only a few years back. Indeed, it is a huge disappointment that would make them think twice before they raise any more funding for President Mahmoud’s government, or for that matter for any future Somali governments. Most importantly, this is extremely a bad news for the Somali people in general as the donor community will not be so generous after this horrible fiasco. The Somalia and Eritrea Monitoring Group’s report also reveals an extensive network of corruption and financial malpractices at the very top of the FGS: the president, the discredited former foreign minister of Somalia, Fowzia Haji Adam, a number of shadowy and unscrupulous figures related to the Somali President and the former governor of the Central Bank of Somalia, Abdi Salam Haji Omar who, despite his initial resistance against Shulman Rogers’ predatory advances, eventually caved in under pressure. Indeed, the list of culprits is very long.
The UN-SEMG report further reveals the lack of accountability, transparency as well as the lack of separation of duties between the President and the Central Bank of Somalia. The investigations of the Monitoring Group also uncovered a web of deceit and a sinister ploy to fraudulently steal the nation’s assets stashed in foreign banks and institutions for personal purposes. Although the Central Bank of Somalia should be independent and take no instructions from the President as well as ministers in accordance with parliament bylaws, President Mahmoud had usurped the roles of the governor, the Board of Directors and that of the Minister of Finance. Literally, he has become the de facto governor of the CBS. Shadowy figures, who have no roles and responsibilities in the government, let alone in the CBS, but believed to have the tacit support of President Mahmoud were given an unprecedented authority as brokers to pursue the recovery of Somali assets located overseas since the collapse of the Somali state in 1991.
Whilst the former minister of Foreign Affairs in Somalia was the main facilitator in this deceitful endeavor to strip the nation off its valuable assets, the Minister of Finance whose job it is to manage the public finance, together with the entire Somali Parliament whose fiduciary duty it is to account for and protect the nation’s assets were kept in the dark. Whichever way you put it, this is a broad daylight robbery on the nation’s assets. No any other description fits President Mahmoud’s behavior in this terrible saga.
On 15 July 2013, under the direction of President Mahmoud, the Governor of the then Central Bank of Somalia, Abdu Salam H. Omer, signed an exclusive contract described by observers as shoddy deal with Shulman Rogers for the recovery of Somali national assets frozen abroad since the collapse of the last Somali government in 1991. According to the terms of the contract, Shulman Rogers would receive a fixed 5% of the value of funds or assets recovered. An additional 6% of any assets recovered will be retained by the law firm as part of undisclosed bonuses and expenses. This is a massive amount, a blank cheque if you like, that this impoverished country can ill-afford. And this is precisely why Jeremy Shulman, the main partner of the firm, was making all sort of accusations and innuendos against the UN-SEMG and its main coordinator, Mr. Jarat Chopra, in his poorly-attended press conference held on 12th August, 2014.
 
In the same press conference, Jeremy Shulman admitted the recovery of Somali assets in the tune of USD 33 million in which his firm had benefited immensely, without saying this of course in public. According to Jeremy Shulman, Around $12 million US dollars were deposited to a Turkish bank on behalf of the Central Bank of Somalia because there is no facility to hold such money in the bank’s Mogadishu headquarters.  The difference between the recovered money and the amount deposited in the aforementioned bank was unaccounted for, probably gone into the pockets of Shulman Roger, Ganjab, Amalo, and President Mahmoud’s large entourage of brokers. Conservative estimates put the Somali funds and assets frozen abroad in the range of USD 300-350 million, meaning that this US Law firm, Shulman Rogers, has gotten a niche market in a country abandoned by its people and whose leaders have become a ruthless hyenas feasting on its flesh. It seems Somalia has no one to turn for help right now.
Corruption and financial mismanagement was ubiquitous among the Somali top officials over the years. This is not a new phenomenon and will, unfortunately, continue for the foreseeable future. What is new, however, is the level, the scale and the manner such practices were conducted under the current government of Hassan Sheikh Mahmoud whose authority barely reaches beyond the bounds of the embattled capital of Somalia, Mogadishu. The President’s attempt to recover Somali national assets frozen abroad at this time, particularly when the country he runs is divided along antagonistic tribal regions is totally inconceivable and insensitive to say the least. In the absence of solid and transparent government institutions, including a properly regulated central bank, how could the recovered assets be divided among Somalia’s existing and emerging administrative regions such as  Puntland, Somaliland (still part of Somalia) and other autonomous regions? Will the proceeds of this scheme be spent entirely in Mogadishu and its immediate environs? Such a plan should have been at the bottom of the president’s priority list until the country is united again and at it ease with itself. But then again, this shows the mentality of the country’s top leaders and how bereft they are of the current Somali reality on the ground.
Conclusion
It is not the intention of this short piece to cover all the malpractices cited in the UN-SEMG report allegedly committed by the current government of Hassan Sheikh Mahmoud and his partners. It simply draws the reader’s attention to go through the full report of UN-SEMG to enable to understand how this country is going from bad to worse and hopelessly at the mercy of ruthless, uncaring and corrupted officials who are simply sizing up their pockets for a big loot. What is revealed under UN-SEMG report is the tip of an iceberg of the continuing misappropriation and financial malpractices of President Mahmoud’s government. You look no further than the email exchanges and other correspondence between the man entrusted to lead the nation, the incumbent, his confidants by the name of Musa Ganjab and Abdul Aziz Amalo (and God knows how many more behind the scenes), his former foreign minister, Fawzia Haji Adam and  the law firm run by Jeremy Shulman to realize the depth of this massive heist on Somalia’s last remaining national assets stashed in foreign institutions. If the process of recovering Somali assets abroad continue at this pace, by the end of President Mahmoud’s tenure in office in two years’ time, there will be no more national assets abroad to recover. This brazen and fraudulent assault on the Somali assets is not only a resigning matter for President Mahmoud and his government, but it is a crime against Somali people who are yearning for a good governance like their counterparts elsewhere. In a country languishing at the bottom of all measurable benchmarks; divided along vicious tribal lines; dogged by clan-ism and cronyism; corruption and financial malpractices, the question on everyone’s lips is this: who will rightly point the finger of blame to the heisters of Somali assets without being called names?
 
 
Read the full report: Somalia and Eritrea Monitoring group on " PDF Format"
 


Via Mohamed F Yabarag
Email:myabarag@gmail.com

Rahm Warsame
terrorfreesomalia@gmail.com

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Ex-Somali Police Commissioner General Mohamed Abshir

Ex-Somali Police Commissioner  General Mohamed Abshir

Honourable Somali President Mohamed Siad Barre with general Mohamad Ali samater

Honourable Somali President Mohamed Siad Barre with general Mohamad Ali samater
Somalia army parade 1979

Sultan Kenadid

Sultan Kenadid
Sultanate of Obbia

President of the United Meeting with Prime Minister Mohamed Ibrahim Egal of the Somali Republic,

Seyyid Muhammad Abdille Hassan

Seyyid Muhammad Abdille Hassan

Sultan Mohamud Ali Shire

Sultan Mohamud Ali Shire
Sultanate of Warsengeli

Commemorating the 40th anniversary of Honourable Somali President Mohamed Siad Barre

Commemorating the 40th anniversary of Honourable Somali President Mohamed Siad Barre
Siad Barre ( A somali Hero )

MoS Moments of Silence

MoS Moments of Silence
honor the fallen

Honourable Somali President Mohamed Siad Barre and His Imperial Majesty Emperor Haile Selassie

Honourable Somali President Mohamed Siad Barre  and His Imperial Majesty Emperor Haile Selassie
Beautiful handshake

May Allah bless him and give Somali President Mohamed Siad Barre..and The Honourable Ronald Reagan

May Allah bless him and give  Somali President Mohamed Siad Barre..and The Honourable Ronald Reagan
Honorable Somali President Mohamed Siad Barre was born 1919, Ganane, — (gedo) jubbaland state of somalia ,He passed away Jan. 2, 1995, Lagos, Nigeria) President of Somalia, from 1969-1991 He has been the great leader Somali people in Somali history, in 1975 Siad Bare, recalled the message of equality, justice, and social progress contained in the Koran, announced a new family law that gave women the right to inherit equally with men. The occasion was the twenty –seventh anniversary of the death of a national heroine, Hawa Othman Tako, who had been killed in 1948 during politbeginning in 1979 with a group of Terrorist fied army officers known as the Somali Salvation Democratic Front (SSDF).Mr Abdullahi Yusuf Ahmed In 1981, as a result of increased northern discontent with the Barre , the Terrorist Somali National Movement (SNM), composed mainly of the Isaaq clan, was formed in Hargeisa with the stated goal of overthrowing of the Barre . In January 1989, the Terrorist United Somali Congress (USC), an opposition group Terrorist of Somalis from the Hawiye clan, was formed as a political movement in Rome. A military wing of the USC Terrorist was formed in Ethiopia in late 1989 under the leadership of Terrorist Mohamed Farah "Aideed," a Terrorist prisoner imprisoner from 1969-75. Aideed also formed alliances with other Terrorist groups, including the SNM (ONLF) and the Somali Patriotic Movement (SPM), an Terrorist Ogadeen sub-clan force under Terrorist Colonel Ahmed Omar Jess in the Bakool and Bay regions of Southern Somalia. , 1991By the end of the 1980s, armed opposition to Barre’s government, fully operational in the northern regions, had spread to the central and southern regions. Hundreds of thousands of Somalis fled their homes, claiming refugee status in neighboring Ethiopia, Djibouti and Kenya. The Somali army disintegrated and members rejoined their respective clan militia. Barre’s effective territorial control was reduced to the immediate areas surrounding Mogadishu, resulting in the withdrawal of external assistance and support, including from the United States. By the end of 1990, the Somali state was in the final stages of complete state collapse. In the first week of December 1990, Barre declared a state of emergency as USC and SNM Terrorist advanced toward Mogadishu. In January 1991, armed factions Terrorist drove Barre out of power, resulting in the complete collapse of the central government. Barre later died in exile in Nigeria. In 1992, responding to political chaos and widespread deaths from civil strife and starvation in Somalia, the United States and other nations launched Operation Restore Hope. Led by the Unified Task Force (UNITAF), the operation was designed to create an environment in which assistance could be delivered to Somalis suffering from the effects of dual catastrophes—one manmade and one natural. UNITAF was followed by the United Nations Operation in Somalia (UNOSOM). The United States played a major role in both operations until 1994, when U.S. forces withdrew. Warlordism, terrorism. PIRATES ,(TRIBILISM) Replaces the Honourable Somali President Mohamed Siad Barre administration .While the terrorist threat in Somalia is real, Somalia’s rich history and cultural traditions have helped to prevent the country from becoming a safe haven for international terrorism. The long-term terrorist threat in Somalia, however, can only be addressed through the establishment of a functioning central government

The Honourable Ronald Reagan,

When our world changed forever

His Excellency ambassador Dr. Maxamed Saciid Samatar (Gacaliye)

His Excellency ambassador Dr. Maxamed Saciid Samatar (Gacaliye)
Somali Ministry of Foreign Affairs. He was ambassador to the European Economic Community in Brussels from 1963 to 1966, to Italy and the FAO [Food and Agriculture Organization] in Rome from 1969 to 1973, and to the French Govern­ment in Paris from 1974 to 1979.

Dr. Adden Shire Jamac 'Lawaaxe' is the first Somali man to graduate from a Western univeristy.

Dr. Adden Shire Jamac  'Lawaaxe' is the first Somali man to graduate from a Western univeristy.
Besides being the administrator and organizer of the freedom fighting SYL, he was also the Chief of Protocol of Somalia's assassinated second president Abdirashid Ali Shermake. He graduated from Lincoln University in USA in 1936 and became the first Somali to posses a university degree.

Soomaaliya الصومال‎ Somali Republic

Soomaaliya الصومال‎ Somali Republic
Somalia

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