CORRUPTION, INFIGHTING AND GUN RUNNING AT THE CENTRAL BANK OF SOMALIA

CORRUPTION, INFIGHTING AND GUN RUNNING AT THE CENTRAL BANK OF SOMALIA

MP Dr. Abdillahi Hashi Abib drops another stunning 102 pages corruption report with detailed annexes to President Hassan Sheikh and to the Somali people. MP Abib begins his letter by telling the President that he has “written and sent to your Excellency Mr. President, the Prime Minister, Cabinet Ministers, Auditor General of Somalia, Attorney General of Somalia, and Governor of the Central Bank of Somalia more than 54 Official Oversight Reports, and I have not received a single response.”

Wondering why the president remains silent when the country is coming apart at the seams, MP Abib writes, “Mr. President, there are only two reasons for your silence: either you are part of this rampant corruption, as the Somali say “Awr ba Awrka ka Horeeya Buu Socodkiisa Leeyahay” and you can’t do anything about it because they outmaneuver you, or you don’t comprehend the extent to which this rampant corruption is destroying the fabric of Somali society and burdening generous international taxpayers. The parliamentary elections in the EU are a good example of why far-right parties are winning elections; they are tired of their taxpayers’ money enriching a few trusted inner circle in Villa Somalia, including you, while the Somali people receive no benefit and, due to poverty, risk their lives seeking refuge in the EU.”

MP Abib then calls out the president for sending some underlings to defame him and writes, “Despite presenting substantial evidence regarding these allegations, your silence on this matter, as well as your failure to refute the validity of the evidence or address the allegations in a professional manner as required by the parliamentary rules of inquiry, is alarming. Instead of responding to my legitimate concerns (except for one instance via WhatsApp, in which you asked me to emulate Senator Dube who often praises you), you chose a different path. You convened your inner circle, including senior advisors at Villa Somalia, the Deputy Prime Minister, the Minister of Finance, the Governor of the Central Bank of Somalia, the Minister of Education, Culture and Higher Education, the Deputy Minister of Information, and outside counsel. Subsequently, you opted to approach the most junior Deputy Minister from my region to defame me by falsely accusing me of committing treason against the Federal Republic of Somalia (https://x.com/radiodaljir/status/1803951966457917758).”

And then he goes to the heart of the matter, the corruption, the infighting, and staff intimidations at the Central Bank of Somalia under the leadership of Governor Abdirahman Abdullahi and writes, “while central bank resources are being used to harass staff, intimidate would-be whistleblowers, and bribe politicians, corruption and waste of public funds continue unabated. My oversight investigation has unveiled disturbing reports of harassment, intimidation, and threats directed at Central Bank of Somalia (CBS) employees. These employees are falsely accused of leaking confidential data to my office. I categorically state that no CBS staff member has ever contacted, shared documents, or data with me. The information (400 Gigabytes of data) I have obtained came directly from high-level government sources, including Villa Somalia, several ministers, and advisors, implicating the General Manager and Executive Director of CBS.”

 

On gun running at the CBS, MP Abib writes, “One egregious example is the General Manager’s purchase of Pistols, Gun AK-47 and Ammunition from the black market, classifying these as single – source vendor transactions. Such actions not only breach accounting standards – since the General Manager is not authorized to approve his own financial transactions – but also violate the unanimous draft resolution 2714 (2023) adopted by the United Nations Security Council. This resolution, which lifts the arms embargo established in resolution 733 (1992) with amendments, mandates strict control over the sale and movement of weapons in Somalia.

The General Manager’s unregistered purchase of weapons with CBS funds, and the failure to list these as assets in the 2023 Audited Financial Report, highlights a clear violation of the UN resolution. This situation exemplifies how CBS funds, allegedly increasing due to security expenditure, are being misappropriated by the General Manager and Executive Director for personal use. This misuse of public funds, bypassing external audit scrutiny, underscores systemic corruption within CBS.”

And then he reveals major corruption cases by Ali Sheikh Mohamud, the President’s brother. He exposes that “The CBS Governor’s actions, including signing over $2 million worth of contracts without proper tender procedures, highlight a severe disregard for legal contracting processes, further exposing the bank to operational and legal risks. A recent investigation revealed that these contracts were awarded to companies with dubious credentials and no competitive bidding, directly contravening procurement laws aimed at ensuring transparency and fairness. This not only undermines the integrity of CBS but also raises concerns about potential conflicts of interest and corruption within its leadership. Example Governor giving without bid contracts to Daljir Trading Company own by Ali Sheikh Mohamud (Brother the President) which also gets contracts from World Bank Group, Ministry of Finance, the House of People, Villa Somalia, Office of Prime Minister, Somalia National Army, Somali National Police, and many other Federal Agencies breaks all Procurement Act.”

On asset recovery from foreign banks, MP Abib reveals that “The External Auditor Financial Report of 2023 highlights significant issues regarding the handling of asset recovery funds from Intesa Sanpaolo Bank. These funds, amounting to USD 6,984,451, were recovered through the World Bank’s Stolen Asset Recovery (STAR) Initiative. This initiative is crucial in returning misappropriated funds to their rightful owners, particularly for countries like Somalia, where assets were lost following the government’s collapse in 1991.”

And then there is the almost 2000% increase in 2023 spending as compared to 2022. On that increase MP Abib writes, “The notable increase in operating expenditures requires careful justification, especially considering the context of the Somalia financial sector, which has not seen a major overhaul. But in this case, there is no credible justification for increasing expenditure by 1,895%.

The dramatic increase from $9.7 million to $194.3 million suggests an extensive escalation in spending for 2023. This increase raises concerns about whether it is due to mismanagement and lack of proper budget oversight, poor financial planning, and inefficient use of resources could result in significant overspending without corresponding value. The rapid increase in travel, mission allowances, and miscellaneous expenses is concerning as it could indicate inefficiencies, lack of proper controls, or wasteful spending.”

Examples of such blatant cost increases without accountability are provided as follows:

Travel Allowances:
• 2022: $208,375
• 2023: $471,568

Mission Allowances:
• 2022: $151,362
• 2023: $623,698

Study Visit Per Diem:
• 2022: $325,130
• 2023: $667,960

Staff Training:
• 2022: $144,450
• 2023: $329,796

Continue reading MP Dr. Abdillahi Hashi Abib’s letter to President Hassan Sheikh and to all Somali citizens: Official_Letter_President_Somali_People_Abib_MP_23_06_2024

Contributed to by Daljir staff in Garoowe and Nairobi

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