December 14, 2013

As al Shabaab is cleared from more parts of Somalia more information is getting out about how the Islamic terrorists operated when they controlled most of southern Somalia after 2009. As long suspected, al Shabaab financed its operations by “taxing” everyone, including the aid agencies that were trying to deal with a major famine. Al Shabaab kept raising the taxes and gradually the businesses and aid agencies left. This helped make the al Shabaab collapse in 2012 possible.
In northern Kenya, on the Ethiopian border, tribal fighting has caused several hundred casualties in the last week, with up to a hundred dead. All those involved are semi-nomadic herders who have feuded with each other for generations over access to grazing land and water. In the last two decades many have acquired cheap Cold War surplus weapons and the feuds have gotten bloodier. Efforts to disarm these tribes have not been very successful. The recent fighting pitted the traditional dominant tribe, the Borana, against the Rendille, Gabra and Burji. Kenya sent more troops to the area to separate the combatants and try to calm things down. The Borana have long been politically active and are currently backers of the ruling party in Kenya. Other tribes accuse the police and army of favoring the Borana, which does happen but often because the security forces trust the Borana more than the other tribes because of the political reliability of the Borana.
The latest international corruption rankings put Somalia, Afghanistan and North Korea at the bottom of the list, as the most corrupt countries on the planet. In Somalia the corruption is encouraged by the intense clan loyalties and the desire of high level officials to look out for their family and clan first and Somalia later, maybe. The inability of government officials to leave clan politics out of their decision making and halt the theft of government funds (nearly all if from foreign donors) has made unity and economic growth nearly impossible. The donor nations warn that without a crackdown on the corruption and the clan rivalries the foreign aid will be reduced and what does arrive will have a lot more conditions attached. These include bringing in foreigners to supervise the spending of the aid. If the foreign aid supervisors are unable to work because of threats and violence, the aid will stop. Most Somali leaders don’t believe the donor nations will completely withdraw and that the donors can be manipulated via media exploitation of Somalis suffering from famine and disease.
The donor nations are also angry about how the government is dealing with opposition or anti-corruption politicians. Murder is one of the tactics the governing parties are believed to be using to silence critics. The donor nations are also very upset at how the government has treated rape victims who went public. The victims were arrested and the government is trying to force the accusers to shut up. Somalis tend to view this sort of misbehavior as tradition and the way things have always been done.
There is growing sense of despair at the inability of Somalia to govern itself. Some Somalis (like al Shabaab) blame foreigners for interfering with Somalis internal affairs and manipulating Somalis into a state of chaos. But the majority of Somalis know that the problem is closer to home. Somalis have been battling each other, and their neighbors, for centuries. Disunity is nothing new. Corruption has long been the major flaw in Somali culture and the inability to cope with this has turned Somalia into one of the poorest and violent countries on the planet.
Then there’s always the clan (tribal) politics, and the inability of clan and warlord groups to compromise to form a united government. Not enough Somali leaders have accepted the fact that the old ways just are not working. Then again, many Somalis have a different concept of peace and prosperity. In times past, the losers in these tribal wars would all die, or be absorbed into the victorious tribe. But these days you have international relief efforts. So millions of Somalis are surviving on foreign aid. This refugee community produces more angry young men, ready to take up the gun and go get some tribal justice, or just get rich.
None of this is new, but the donor nations are getting tired to repetition. A decade ago Djibouti, Kenya and Ethiopia were advising various factions in the Somalia peace talks in Kenya about how to compromise and move forward. Back then Somali “traditions” had led to an inability to decide how the initial parliament would be formed. This would be the first government since 1991 and it seemed like an impossible dream. The problem was in determining who would get how many seats since, at that point, elections were not possible. Many of the warlords had an exaggerated view of their own power (political or military), and many withdrew from the final negotiations over allocating the parliamentary seats. Without the participation and agreement of all the major factions, the new national government would not work. It seemed impossible to make the Somalis compromise and cooperate. While the traditional clan leadership (a council of clan elders) was eager to establish a new government, mainly because the elders see their kinsmen dying from starvation and disease the powerful warlords (some of them led by Moslem clerics) the clan leadership did not have the firepower to force a settlement. The warlords caused death and fear as a matter of course, and only perk up when they see their power threatened. The warlords also knew that an effective national government could soon become powerful enough to defeat and kill or imprison the warlords. Djibouti, Kenya and Ethiopia each support, or dislike, some warlords more than others. Dealing with the warlords has always been the key to Somalia’s survival as a nation and ultimately the other nations in the region (especially Ethiopia and Kenya) had to send in troops to make it possible to establish a national government. While many of the warlords were persuaded to cooperate (or put out of business), they are still gangsters at heart and national unity is not a high priority for them.
December 12, 2013: In central Somalia (Beledweyne) fighting between rival clans left at least ten dead and nearly 20 wounded. In the central Somalia town of Baidoa a group of armed al Shabaab men attacked a government building without success.
December 11, 2013: The official investigation of the Westgate Mall attack in September was leaked. It admits that the four attackers may not have died but escaped during the chaotic effort to deal with the attack. The police did uncover a network of Somalis and non-Somalis in Kenya who aided the attackers and traced the movements of the four attackers in the months prior to the attack. The four crossed into Kenya in June and went to live in a Somali neighborhood in Nairobi. There they made their final preparations, including many visits to the mall to familiarize themselves with the place. The four days of shooting and explosions inside the mall were largely the result of incompetent leadership from the security forces. At least 67 people died in the mall and 27 remain unaccounted for. Officially, Kenya insists that the attackers were killed, but the police report admits that there is no definitive proof.
December 10, 2013: In northeastern Kenya police clashed with al Shabaab gunmen near the Somali border. Five policemen, three civilians and at least two Islamic terrorists were killed during the terrorist ambush. Two policemen are missing and presumed dead or captured.
December 7, 2013: : In central Somalia (the Bakool region) Ethiopian troops rolled into the town of El Barde to help the government garrison deal with local al Shabaab gunmen still operating in the countryside.
December 6, 2013: In Mogadishu al Shabaab fired several rockets at the sports stadium but there was little damage and no injuries. Elsewhere in the city an opposition Member of Parliament was killed by a bomb under his car. This took place just outside a heavily guarded government compound and opposition politicians accuse the government of being behind killings like this and efforts to shut down media outlets that do not agree with the government.
In south-central Somalia (Hiran) a peacekeeper from Djibouti was killed and another wounded as they attempted to disable a roadside bomb.
December 5, 2013: In the north (the port city of Bosaso in Puntland) a suicide car bomber attacked a military convoy, killing seven and wounding 37.
November 30, 2013: In Mogadishu a judge was killed. Such murders are believed to be the work of criminal gangs or Islamic terrorists, both of whom have an interest in convincing judges to be less enthusiastic in dealing with illegal activity.
November 28, 2013: In the north (Puntland) rebel clansmen attacked the convoy of the Puntland vice president. The attack failed and a soldier and either others (rebels and civilians) were killed. The Puntland government is trying to make peace in the area where the rebel clan operates and if that fails troops will be brought in.
November 27, 2013: In the central Somali town of Beledweyne police arrested over 500 people in the wake of an al Shabaab attack on the 19th. Peacekeepers sent into the area have moved out into surrounding areas taking control of four villages al Shabaab had been using as bases and keeping the pressure on the Islamic terrorists. The plan is to keep after the local Islamic terrorists until their supporters and the gunmen are all arrested or killed.

Source StrategyPage.com

EU Commissioner said , “EU doesn’t trust the corruption overburdened regime in Mogadishu”

Somalia, ex-Italian Somalia, is the most corrupt state in the world, according to the latest index compiled by the Berlin-based corruption watchdog Transparency International. U.N. and EU are trying to paint a dark picture of the corruption in Somalia, which could put off the countries that bankroll the country’s budget.
The reports highlighted all forms of corruption including political, financial, educational, administration and even human right abuses against minority. The political system in Somalia is corrupted and based on tribe; recently the Chairman of Central Bank of Somalia Ms. Yusr Abrar resigned after the president of Somalia Mr. Hassan Sheikh pressured her to authorize illegal money; no press freedom; even the international community manages the aid funds by itself without Somalia government involvement.
The USA and Italy sponsor the salaries of the military and police, where each of the two governments send own representatives to Mogadishu to distribute the salaries directly to the soldiers , hand-to-hand, because both governments don’t trust Mogadishu regime.
Recently, the EU Spokesman expressed anger over the recent allegations by Somalia’s Deputy Premier and Minister of Foreign Affairs of Somalia Ms. Fouzia Adan accusing the EU for not funding Somalia government.
“The Statement of Ms. Fouzia Adan is untrue and we, the EU, spend millions of dollars in aiding Somalia. However, if Ms. Adan meant that EU doesn’t directly handover the funds to the central government of Somalia, than she is right because EU don’t trust the corruption overburdened regime in Mogadishu.” EU Spokesman concluded in response to the Ms. Adan’s allegations. — end
The government in Mogadishu is a decoration. It does not control outside Mogadishu. It does not provide basic services to its citizens and don’t protect them. The African Union forces (AMISOM) are fighting Al-Shabab terrorist not the nationalized militia of the Somalia government, who are named after Somalia National Military.
The official spokesman of AMISOM Mr. Abdi of Djibouti Forces criticized the undisciplined military of Somalia for not taking their role in the fight. “Somalia Military are undisciplined, corrupted and unable to manage or control the areas liberated from Al-Shabah.”. He went on saying
“ Somalia Military are selling the weapons donated to them by the international community to Al-Shabab terrorist groups.” He concluded his statement.
Al-Shabab is bribing the military and security officials of Somalia which resulted many serious security breaches including the suicide bomber near the Villa Somalia, who was newly recruited by the NSS of Somalia. Another example is the incident at Somalia Supreme Court where the security vacated their posts allowing Al-Shabab members to enter the court building.
The constitution of Somalia is based on an unfair distribution of power between Somalia tribes. It is called 4.5, where some tribes take loin’s share in the cabinet while others are left helpless because they are minority.
The dirty political money is on rise in Mogadishu, where each MP received $20,000 against voting out the former Prime Minister Mr. Saacid. The first hand reports unveiled widespread of corruption in the parliament and the president distributed the dirty money against Mr. Saacid. This is how Somalia politics work – either money or tribe.

As we know, there are no public schools in Somalia and even the Ministry of Education doesn’t have textbooks. There are privately owned schools in Mogadishu that provide poor and uncontrolled education. However, the Ministry of Education receives scholarships from outside world mainly Turkey government.
At the initial scholarship, the ministry granted the scholarships on tribal manner which forced the Turkish government to send its representatives to examine Somalian students.
After that Turkish government representatives are preparing the examination questions and distributing to the students on the examination site. They correct the examination in Turkey and results are announced online. This illustrates how untrusted is the government in Mogadishu.
Law enforcement and police is another black-spot in Somalia government, where the corruption is evident on both lower and higher level ranks.
Sports is another victim of Mogadishu corruption. In last Olympics, the Somalia Olympic Committee sent untrained and unskilled athletes. The Somalian footballers seek political or refuge asylum during tours to rich countries. Nephewsim plays important role in team selection process, where you can see the entire football team from one tribe or region.
Dirty money can do anything in Mogadishu, even can waive off the custom tax and even someone could be a Somalian citizens in five minutes as reported by Al-Jazeera channel whose reporter received Somalian passport against $100. This is how corruption humiliated the Mogadishu regime.
The Somalia justice system is politically motivates and corrupted. In Feb 2013, a rape victim Luul Ali and a journalist who interviewed her were both arrested and sentenced to one year in prison for making false accusation and “insulting a government body”, a case that captured world attention. – Somaliland Press.
Ali said she was the victim of gang rape in a highly publicized case allegedly involving armed men in the military uniform in Mogadishu. – Somaliland Press
There are no functioning departments in Mogadishu, no accountability and if there is unaudited authority ultimately there will be corruption.
Amateurishly, the international community is pouring billions of dollars despite all corruption reports and allegations, and neglecting the developing nations in the region like Somaliland.
Somaliland has established itself as irreplaceable partner in war-on-terror, security and economic development. Somaliland industries supply products to eastern Ethiopia, Djibouti and Somalia. It builds roads, bridges and provides respectful social services including free health and education to its citizens. Somaliland regulated a mature democracy without outside support, and earned international appreciation. U
Somaliland has Anti-Corruption Commission and Audit Bureau. Somaliland high-ranking officials declare their assets before the oath. The elected parliament of Somaliland grills the government officials. Every year, Somaliland President briefs the parliament on the current situation of the country.
The international community behavior in the region illustrates that Somalia is an open project which profits many armies and agencies, and must be kept open!
By\ Abdulaziz Al-Mutairi
Email: az.almutairi@yahoo.com

Alleged rape victims and journalists have been jailed after convictions they say are politically motivated.

A court in Somalia’s capital has handed down six-month jail sentences to a 19-year-old alleged rape victim and the journalist who interviewed her after convicting them on defamation charges brought by the accused.

The alleged rape victim – a reporter for the UN-funded Kasmo FM radio station – gave a video interview to Mohamed Bashir – a journalist for the Shabelle radio station – in which she alleged she was raped at gunpoint by other journalists working for state-owned Radio Mogadishu. The woman and journalist who interviewed her were arrested soon after those accused filed a defamation suit.

The alleged rape victim received a suspended six-month sentence and will be confined to her home. The director at Radio Shabelle also received a one-year prison term related to the case, and both journalists from the news organisation are required to serve their time in jail.

This was not a one-off case in Somalia: In February this year, Luul Ali and a journalist who interviewed her were both arrested and sentenced to one year in prison for making false accusations and “insulting a government body”, a case that captured world attention.

Ali said she was the victim of gang rape in a highly publicised case allegedly involving armed men in military uniform in Mogadishu. In February this year, Ali and the journalist who first interviewed her were arrested and sentenced to one year in prison for making false accusations and “insulting a government body”. The ruling was later quashed on appeal after sustained international pressure on the Somali government.

Ali’s decision to speak up was brave: In Somalia’s deeply conservative society, rape victims are usually looked down upon. Standing outside the courtroom flanked by her husband and her lawyers after one of the hearings, Ali declined to comment on her case to Al Jazeera.

The stigma attached to rape is deeply entrenched in Somali society, and it is difficult for male Somali journalists to speak with victims about rape. It is even more difficult for the female victims, since most of the country’s journalists are men.

“Anything involving sex is hard to cover in Somalia. It is easier to speak to bomb victims than rape victims,” said Mohamed Mohamud Dahir, a popular presenter at SKY FM.

“The consequences for the victim after she goes public can also be life-changing. If you interview her and people know who the victim is, she will be stigmatised and may never find a husband – or she may even be disowned by the society.”

Hard to verify

That’s not the only issue for journalists trying to report on rape and sexual violence in Somalia. “Some victims come to journalists six months after it had happened with no letter from a hospital, doctor or the police. Without evidence it is difficult for the cases to be reported by the media,” explained Mohamed Ibrahim, secretary general of the National Union of Somali Journalists. “If they report, journalists can get arrested and end up in prison – and some have already been arrested for doing that.”

With Somalia still in the midst of a civil war that has lasted for more than two decades, it is impossible to know the true extent of rape. The government and NGOs are only present in some areas of the country, and they often don’t agree on the prevalence of sexual attacks.

Representatives from non-governmental organisations – who asked to remain nameless to protect themselves from retribution – say thousands of women are raped in Somalia every year. Many of the NGOs report the cases without taking the alleged victims to hospitals, for medical tests, or to the police station.

Some NGOs – especially in Mogadishu and Hargeisa, the second-largest city – offer cash to victims to buy medication and pay for their transportation to health facilities. With extreme poverty in many of Somalia’s camps for internally displaced persons, and in the absence of stringent medical check-ups, false reports of rape are said to be common. Sex workers who are unable to buy HIV medication and contraception have been known to report cases of rape to obtain money to buy medicine.

“Occasionally there are fraudulent cases,” said Sagal Sheikh-Ali, programme coordinator at the Somali Women Development Centre. This has led to some NGOs changing the way they report incidences of sexual violence.

“In most instances when a rape takes place, we are called and informed of it. We send a team of caseworkers to visit the survivor, or ask the person contacting us to bring them to us if the survivor is able. Then we conduct an interview to find out about the incident, which is then followed with the survivor being taken to have a medical test. These steps provide enough evidence to suggest almost immediately if it is rape,” Sheikh-Ali added.

Exaggerated cases?

According to the UN, there were 800 cases of sexual and gender-based violence in Mogadishu during the first six months of 2013. In 2012, the UN recorded 1,700 cases across 500 camps for internally displaced people in the capital.

But local NGOs that collect sexual and gender-based violence data quote numbers that are far higher.

This has not gone unnoticed by the UN-backed government in Mogadishu. “We do not deny rape happens. But the numbers are exaggerated by people who want to tarnish the image of the government,” Ridwan Haji Abdiwali, Somalia’s government spokesman, told Al Jazeera.

“Sexual violence in all countries emerging from conflict is a problem, one the Somali nation is not exempt from. The federal government of Somalia takes sexual violence extremely seriously; it is something that is completely unacceptable in Somali culture, is against our laws, and has no place in the new Somalia.”

Those who have worked in Mogadishu say any statistics should be treated with much scepticism. “NGOs tell you one number, the government tells you that number is wrong and victims come to you without evidence months later. And we stay away because we can’t tell who is telling the truth. It is impossible to know the true extent of rape in Somalia.” Dahir said.

With journalists threading carefully around rape for fear of arrest or being duped, and NGOs and the government disagreeing on the prevalence of rape, the real victims of sexual and gender-based violence in Somalia will continue to suffer in the dark

Source: Al Jezeera

09/12/13

SEF London– The Managing Director of the Somali Economic Forum, Hassan M. Dudde was recently interviewed on the primetime Bloomberg TV programme; African Business Weekly whereby he highlighted and elaborated in depth the current economic prospects in Somalia.

Firstly, Hassan M. Dudde was questioned about the degree of political stability that Somalia has undergone recently especially with the utilisation of parliamentary constitutional methods to settle ongoing political issues. The SEF and Mr Dudde answered that they believe Somalia as a whole is benefiting from a renewed sense of security and optimism which has enabled skilled diaspora members to return. In addition, this increased vigour in economic and political fortunes of Somalia has had the combined effect of increasing the levels of inward Foreign Direct Investment and increasing the levels of business and consumer confidence within Somalia’s economy.

Moreover, Eleni Giokos, the host of the African Business Weekly programme inquired regarding the importance of remittances to Somalia’s economy and economic renaissance. In particular, the host touched on the recent landmark High Court ruling to keep Somali remittance companies open despite Barclays’ desire to close all of them. The Somali Economic Forum believe that the High Court ruling to enable Somali remittance companies to continue to operate is a positive and crucial step. The Somali Economic Forum believes that this ruling will enable people across Somalia to benefit from increased economic activity and continued diaspora investment to Somalia, especially considering that Somalia has one of the most economically active diaspora communities in Africa.

In addition, Hassan M. Dudde and the Somali Economic Forum detailed in great depth the recent natural resource boom in Somalia which has led to sustained interest in Somalia’s oil and gas sector.

As Hassan M. Dudde stated in the interview; “Somalia’s oil and gas industry is on the radar of all major multinational oil exploration firms and majors” and above all else is a sign that Somalia as an

economy is open for business. The Somali Economic Forum have documented that Somalia holds an estimated 100 billion barrels of oil. Due to this intriguing statistic the Somali Economic Forum believes that Somalia’s natural resources could prove to have a transformative effect on the general economy serving to increase job creation and FDI.

Finally, the host questioned the Somali Economic Forum regarding poverty alleviation and development in Somalia. As Hassan M. Dudde touched on so eloquently; Somalia as a nation is more than just another news story on poverty or extremism. Rather, Somalia as an economy is at a transformative stage and this media focus should therefore shift towards the rapid socio-economic change which is taking place across Somalia whereby there is increased investment, along with ever rising levels of FDI. Hassan M. Dudde touched on how the Somali Economic Forum’s key objective is to promote the positive economic trend that is taking place across Somalia and to bridge the information gap for local and international investors and stakeholders.

In particular, the Somali Economic Forum was able to successfully do this through the Somalia Investment Summit (SIS) held in Nairobi, Kenya in July 2013. Hassan M. Dudde touched on the next Somalia Investment Summit, which will be held in Dubai 2014. Tickets will be available on sale at the Somali Economic Forum website.

About Somali Economic Forum:

Somali Economic Forum, established in 2011 offers a platform for external stakeholders to discuss national economic and financial development opportunities within the State of Somalia. The forum has been evolved dynamically reflecting the changing economic landscape in the country and the region. With its second yearly consecutive editions held in London, UK and Somalia, the Somali Economic Forum has become the most influential, recurring economic and financial congress in the country.

Contact person

Mariam Farah

Admin and Communications Executive: +442078496897/+447717758007

Email: M.F@somalieconomicforum.org/ admin@somalieconomicforum.org/
To register your interest, visit the summit website at somalieconomicforum.org/events

Date: 8th Dec 2013

PRESS RELEASE

The Managing Director of the Somali Economic Forum, Hassan M. Dudde was recently interviewed on the primetime  Bloomberg TV programme; African Business Weekly whereby he highlighted and elaborated in depth the current economic prospects in Somalia.

Firstly, Hassan M. Dudde was questioned about the degree of political stability that Somalia has undergone recently especially with the utilisation of parliamentary constitutional methods to settle ongoing political issues. The SEF and Mr Dudde answered that they believe Somalia as a whole is benefiting from a renewed sense of security and optimism which has enabled skilled diaspora members to return. In addition, this increased vigour in economic and political fortunes of Somalia has had the combined effect of increasing the levels of inward Foreign Direct Investment and increasing the levels of business and consumer confidence within Somalia’s economy.

Moreover, Eleni Giokos, the host of the African Business Weekly programme inquired regarding the importance of remittances to Somalia’s economy and economic renaissance. In particular, the host touched on the recent landmark High Court ruling to keep Somali remittance companies open despite Barclays’ desire to close all of them. The Somali Economic Forum believe that the High Court ruling to enable Somali remittance companies to continue to operate is a positive and crucial step. The Somali Economic Forum believes that this ruling will enable people across Somalia to benefit from increased economic activity and continued diaspora investment to Somalia, especially considering that Somalia has one of the most economically active diaspora communities in Africa.

In addition, Hassan M. Dudde and the Somali Economic Forum detailed in great depth the recent natural resource boom in Somalia which has led to sustained interest in Somalia’s oil and gas sector.

As Hassan M. Dudde stated in the interview; “Somalia’s oil and gas industry is on the radar of all major multinational oil exploration firms and majors” and above all else is a sign that Somalia as an

economy is open for business. The Somali Economic Forum have documented that Somalia holds an estimated 100 billion barrels of oil. Due to this intriguing statistic the Somali Economic Forum believes that Somalia’s natural resources could prove to have a transformative effect on the general economy serving to increase job creation and FDI.

Finally, the host questioned the Somali Economic Forum regarding poverty alleviation and development in Somalia. As Hassan M. Dudde touched on so eloquently; Somalia as a nation is more than just another news story on poverty or extremism. Rather, Somalia as an economy is at a transformative stage and this media focus should therefore shift towards the rapid socio-economic change which is taking place across Somalia whereby there is increased investment, along with ever rising levels of FDI. Hassan M. Dudde touched on how the Somali Economic Forum’s key objective is to promote the positive economic trend that is taking place across Somalia and to bridge the information gap for local and international investors and stakeholders. In particular, the Somali Economic Forum was able to successfully do this through the Somalia Investment Summit (SIS) in Nairobi, Kenya in July 2013 and Hassan M. Dudde touched on how the next Somalia Investment Summit (SIS) will be based in Dubai on 7th-8th April 2014 with tickets currently on sale at the Somali Economic Forum website.

Mariam Farah

Admin & Communications

m.f@somalieconomicforum.org

Any unchecked authority or power—especially when involving monies—ultimately leads to corruption. That is why it is necessary to put in place mechanisms to monitor, audit, reward, and, when necessary, punish. All laws stemming from a moral or a legal code are based on a system of rewards and punishments.

By corruption I mean: Abuse of authority or position of trust in order to benefit self, family, friends, special interest groups and others willing to buy special privileges in cash or other more subtle payoffs, or by being complacent or tolerant to such conducts.

In recent months, the Somali Federal Government (SFG) had to swiftly sack its first Central Bank Governor when he was implicated on corruption in the (controversial) UN Monitoring Report on Somalia. The process was settled quietly behind closed doors. No investigation, no prosecution, and no guilt or innocence. More importantly, no lessons learned and no improved vetting process.

Immediately following the sacking, SFG appointed its Second Governor to the Central Bank. Within weeks after taking her position, the new Governor resigned; publicly alleging being pressured to sanction a national asset-recovery contract with potential monetary improprieties. What ensued was indirect a smear campaign and two concurrent narratives of corruption that, for all intent and purpose, have stained the credibility of both parties [Disclosure: Though not part of the government, one of my in-laws was named by some websites as a stakeholder in the case at hand]

Whether this latest allegation is real or artificial is immaterial. As a failed state (albeit one on its way to recovery) and one that has been occupying the lowest rank in the Transparency International Corruption Index for a number of years, SFG would have a hard time shaking this sort of controversy off. Which means friends may retreat, potential donor nations may become reluctant, elements within the international community may use it as a political card, and international banking institutions may hike the interest rate on future borrowings.

Swamps of Corruption

Contrary to the common belief that corruption is limited to certain political and socioeconomic environments, namely underdeveloped and developing countries, corruption is nearly ubiquitous global reality. It is a phenomenon found in democracies and dictatorships as well as monarchies and anarchies.

Like crime in general, corruption cannot be totally eradicated. It is a criminal and immoral phenomenon found even in countries that generally respect the rule of law and have all necessary institutions for effective system of checks and balances.

Nepotism/favoritism was so rampant in the U.S. that some historians consider American Civil War hero, President Ulysses S. Grant, as a poster child of corruption.

It wasn’t till late nineteenth century that US Congress passed the Pendleton Civil Service Reform Act, the federal law mandating that government jobs must be awarded based on merit. That and the federal anti-bribery laws did not prevent officials such as Illinois Governor, Rod Blagojevich, from trying to auction President Obama’s old Senate seat after winning in 2008.

If that seems like an isolated case, think of the Watergate Scandal, or the network of consultants, lobbyists, private contractors and government officials who provide privileged access to powerful offices and resources known as the Beltway Bandits whose iconic cash for services was highlighted by the Iraq war and their relentless lobbying to protect the crooks and criminals of the global banking system.

Moreover, it wasn’t that long ago when, across the pond in UK, the so-called Rotten Parliament scandal exposed an endemic of corruption across party lines that ultimately resulted in the prosecution of several members and former members of the House of Commons, and members of the House of Lords as well as a large number of resignations and sackings.

If these shenanigans and criminal activities could take place under the microscopes and lamp posts of law and order, imagine what NGOs and international community representatives in remote countries could do in enabling corrupt officials to get away with robberies and seduce others to tango with them.

Corruption is a two-way street. To focus on one side and not the other is nothing but a subtle effort to continue business as usual.

Steps Necessary to Prevent Corruption

Currently in Somalia, officials are neither constrained by clear and enforceable rules or policies nor is there an auditing apparatus that is in charge of vetting government contracts or have the legal oversight against illicit political and business deals or misappropriation of the meager revenues.

First and foremost, the federal government must institute policies that criminalize corruption.

Second, the judiciary system must be reformed and technical capacity must be improved. While robust functioning of all governmental institutions and policies of checks and balances are crucial to fighting corruption, the most crucial is the branch that enforces such policies. This vital institution must be in place even before any anti-corruption bill is passed by the parliament. Without an effective legal system, fighting corruption would remain a perpetual political pipedream.

Third, the government must create a genuine anti-corruption commission with litigation powers.

Fourth, reinstitute the office of Asset control & Risk Assessment to control fraud and corruption and conduct necessary audits.

Fifth, Spesso politico (Italian for political expenditure) unspecified cash arbitrarily appropriated for top offices to use it at their respective discretions must be totally eliminated. This is a system inherited from the Italian colonial administration that would cash in key offices to bribe, and thus manipulate inter-clan politics to its favor. Although some would argue that such coffers are strictly used to appease vociferous clan leaders and turn away saboteurs, it mostly fuels zero-sum politicking and induces predictable temptations.

Sixth, improve salaries of the plethora of poorly paid public servants. This was one of the biggest factors that increased corruption and ultimately contributed to the destruction of the military government; likewise, it is one of the biggest factors that compel some desperate soldiers to sell their military goods to militants such as al-Shabaab for survival.

Seventh, mandatory asset declaration policy must be instituted. All key officials must declare their assets or financial net worth before assuming office. Such policy would bring an end to the questionable routine of officials leaving office as wealthy men. An ad hoc policy of that nature was once applied under former Prime Minister Mohamed Abdullahi (Farmajo), though no one has officially checked the net worth of each minister once that PM was sacked and his government collapsed.

Eighth, government must institute meritorious hiring policy to prevent the mother of all corruption- nepotism/favoritism.

Ninth, government must adopt the Transparency International Integrity Pact and require all key officials to commit to promote ethical conduct and good governance by signing that document.

Tenth, sign the United Nations Convention against Corruption. This convention would, among other things, enable Somalia not only to prosecute corrupted officially who embezzled monies outside the country, but an international cooperation on asset-recovery. [December 4th is the tenth anniversary of this convention.]

Eleventh, press freedom must be protected with enforceable policies that safeguard public scrutiny of elected and appointed officials.

Twelve, government must adopt a collective approach in combating corruption by mobilizing a coordinated effort between leaders from the religious, intellectual, entertainment and arts sectors to stigmatize and ostracize corrupt officials as a public enemy.

All forms of corruption are zero-sum freeloading and indeed parasitical; and some are existentially more threatening than others. Officials misappropriating or stealing national assets in wealthy countries are one level of lowliness and criminality, doing the same to mainly donated funds intended to assist a nation that was at the brink of self-annihilation and its mostly impoverished people is totally another.

States that earn the reputation of being corrupt have one distinctive criterion in common: they all fail to meet their service and protection obligation toward their citizens. And that, needless to say, erodes public trust on leaders and institutions which then impede economic, political and social developments.

Therefore, the challenge awaiting the federal and all other local governments is to fight Kleptocracy and the culture of impunity that sustained it.

1 December  2013

 “Deeply concerned” by the recent outbreak of violence in Somalia’s northern Sool region, the top United Nations official in the country called today for calm and urged all parties to resolve political issues through dialogue and reconciliation.

“Violence cannot and will not resolve political issues. All those with a stake in the area must show calm and pursue reconciliation,” said Special Representative of the Secretary-General for Somalia, Nicholas Kay, in a statement issued by the UN assistance mission in the country (UNSOM), which he heads.

Mr. Kay deplored the loss of life and offered his condolences to the families of those killed in recent clashes. Some news agencies have reported at least 10 deaths and dozens of injuries in the latest fighting in the area.

“Political differences and competing claims should be solved by dialogue. Peace and stability are also critical to the Puntland election process”, added the envoy.

According to the statement, Mr. Kay and UNSOM colleagues are in touch with regional leaders to urge restraint and offer support for dialogue and reconciliation.

Mr. Kay wrapped up on 22 November a three-day visit to Puntland with stops in the cities of Garowe, Galkayo and Bosasso ahead of the Puntland Parliamentary selection process in December and the presidential elections scheduled to take place 8 January 2014.

 UN News service

The Former governor Yussur Abrar

Bashir Issa Ali will fill the governor vacancy at the Central Bank of Somalia, created when Yussur Abrar quit the bank and the country amid corruption controversies

The Somali government has re-appointed former central bank governor Bashir Ise Ali to the top job at the Central Bank of Somalia on an interim basis, a month after Yussur Abrar quit amid reports she was being pressured by the government to collaborate in covering up corruption.

Newswire Reuters today reported that finance minister Mohamud Hassan Suleiman confirmed Ali had been asked to take the post on an interim basis. His first term as central bank governor began in 2005.

The Financial Times reported that it had seen Abrar’s resignation letter, in which she wrote that she had “continuously been asked to sanction deals and violate my fiduciary responsibility to the Somali people as head of the nation’s monetary authority.”

Abrar was educated in the US at Oklahoma State University and has since worked at a number of international banks. Before joining the central bank she held positions at the African Development Bank and as managing director at TLG Financial Services.

She replaced Abdusalam Omer, who resigned on September 13 after a United Nations report said the central bank was “at the heart” of a system of “misappropriation, embezzlement and outright theft of public resources”. The central bank functioned as a “slush fund” for the government’s system of patronage, the report said.

However Abdirashid Hashi, deputy director of Mogadishu-based think-tank the Heritage Institute for Policy Studies, told CentralBanking.com it was “hard to believe what is being reported”, adding that Abrar’s departure was “most likely about policy and direction”.

By Jean Shaoul
30 November 2013

Dahabshiil, the largest provider of remittance services to the 100,000 Somalis living in Britain, this month won an interim injunction at the high court, preventing Barclays Bank from cutting its banking services.

Barclays had planned to cut off services to a number of money transfer companies, citing concerns over money laundering. It means customers will be able to transfer money through Dahabshiil for the foreseeable future, pending the outcome of a full trial to be held next year.

Without the services of Barclays, the last major British bank that still provides money transfer services to Somalia, it would be very difficult and ultimately very expensive to transfer remittances—believed to total some £100 million a year—to Somalia.

Such transfers from Somali workers in Britain and elsewhere provide a lifeline to families with no access to conventional banking services and no other source of income to pay for such basic necessities as schooling, food, and clothes.

According to a recent report by the United Nations, more than 40 percent of Somalia’s population—more than four million people—receive remittances from overseas. Oxfam estimates that remittances account for 60 percent of recipients’ income, with about £1 billion a year coming in from Somalis around the world.

Behind the struggle to maintain Barclays’ services to money transfer companies lies the high cost of transferring such monies back home to indigent people without bank accounts, often in remote rural areas. According to the World Bank, charges average a massive 9 percent, after falling slightly between 2008 and 2010.

Charges are particularly exorbitant for remittances to smaller and poorer countries, the “smaller remittance corridors”, reaching 12 percent in Sub-Saharan Africa and even higher in the Pacific Islands. Yet advances in technology and falling information costs should have lowered charges.

This is not all. As the World Bank notes, there is evidence that the banks are beginning to levy charges, called “lifting fees”, on recipients which can be as high as 8 percent of the transaction, in addition to the charges levied on the sender. This means that a $200 remittance can cost a usurious $32.

Many banks in the United States and Britain have closed their accounts with money transfer companies, ostensibly due to concerns about money laundering and the financing of terrorism. Given that they have no compunction about breaking the law when it suits them to fix interest rates, it is more likely because they simply have no incentive to provide remittance services to low-value customers.

Somalia and a number of other countries have been particularly hard hit with soaring transfer costs, as the transfer companies use their monopoly power to jack up fees, under conditions where remittances to the world’s poorest countries are rising.

Transfers to the so-called developing countries are expected to reach $414 billion in 2013 (up 6.3 percent over 2012), and $540 billion by 2016. Worldwide, remittances are set to reach $550 billion in 2013 and more than $700 billion in 2016. These transfers from family members are now nearly three times the size of official development assistance, and larger than private debt and investment in stocks and shares.

They exceed the foreign exchange reserves in at least 14 countries and are more than half the level of reserves in more than 26 countries. In countries where imports exceed exports, remittances are what keep them afloat. This is particularly the case in Bangladesh, Pakistan, Nepal, and Sri Lanka.

In India, remittances are higher than their much vaunted IT exports and have become more crucial as the value of the rupee has fallen. Remittances to Egypt have tripled since 2009 and are more than three times larger than revenue from the Suez Canal. A massive 2.4 million of Egypt’s migrants work in the Gulf, with 1.3 in Saudi Arabia alone.

The largest recipients of workers’ income from overseas in 2013 are India ($71 billion), China ($60 billion), the Philippines ($26 billion), Mexico ($22 billion), and Egypt ($20 billion). Other major recipients include Pakistan, Bangladesh, Vietnam and the Ukraine.

These figures need to be seen in relation to the size of their economy. When expressed as a percentage of GDP, the poverty of countries dependent on their expatriate migrant workers comes into sharp relief. The top recipients in 2012 were Tajikistan (48 percent), Kyrgyz Republic (31 percent), Lesotho and Nepal (each with 25 percent), and Moldova (24 percent).

The World Bank estimates that half of all working age men are abroad, mainly in Russia, which is home to 11.3 million foreign workers, three million of whom are there illegally, according to the Russian government.

These figures are testimony to the devastating poverty and appalling social conditions that have forced so many people to leave their homes and families in search of work in foreign lands.

Migrant workers face some of the cruellest and most dangerous and oppressive working environments, with few rights and appalling rates of pay. Yet there are now about 230 million international migrants and over 700 million internal migrants, while the number of people affected by migration–via remittances, business services to migrant workers, not to mention the people traffickers, etc.—is very much larger.

A Bangladeshi worker seeking unskilled work in the Middle East will spend anything between $2,000 and $4,000 on fees to a recruitment agency and the costs of health insurance, medical tests, finger printing and document verification, for a job that pays just $200 a month. These fees are between 2 and 2.5 times the per capita GDP in Bangladesh or 14 months of wages.

The migrant worker must also obtain a visa to travel to the place of work, a significant cost in its own right. A business visa to the US may cost $560 for a Turkmenistan national, while an average work visa to the US costs $215, although it can be as high as $690 for a Tanzanian doctor or 113 percent of the per capita GDP. Visa fees for a US citizen travelling to such countries are very much lower.

As well as visa fees, there is the burden of providing the supporting documentation, including mandatory medical tests, insurance, proof of sufficient savings or visa bonds. Britain for example, demands £3,000 (nearly $5,000) in visa bonds for applicants from the Indian sub-continent and Nigeria and Ghana, before they can enter the country, which will be refunded upon departure provided they do not overstay their visas.

Thus the recruitment costs involve extortionate loans that put the migrant workers at the mercy of the recruitment agencies and people traffickers, who lend them the money. It can take years to pay off the debt, which coupled with sending money back home to their families make them vulnerable to exploitative and abusive employers.

The plight of migrant workers is an international one. They are exploited as cheap labour by their employers in the countries where they are working, with no democratic rights and frequently subject to physical, psychological, and sexual abuse. They are ripped off by the banks and money transfer operators when they send their savings home to their loved ones. At the same time, their own government—dependent upon foreign currency remittances to keep their flagging economies going—facilitate and encourage what is little more than a modern-day slave trade.

Published by the International Committee of the Fourth International (ICFI)