SEVERE CORRUPTION AT THE CENTRAL BANK OF SOMALIA AND FORMER GOVERNER OF THE CENTRAL BANK OF KENYA IS IMPLICATED

SEVERE CORRUPTION AT THE CENTRAL BANK OF SOMALIA AND FORMER GOVERNER OF THE CENTRAL BANK OF KENYA IS IMPLICATED

MP Abdillahi Hashi Abib does it again and this time, in his second letter to President Hassan Sheikh, exposes severe, persistent and pervasive corruption at the Central Bank of Somalia under the leadership of the current Governor and General Manager.

Here are the key takeaways of the latest revelations of corruption galore at the Central Bank of Somalia:

  • Auditors are being bribed to overlook discrepancies and fraudulent activities within the Central Bank’s operations
  • The Governor has refused to allow the Office of General Auditor to audit their books and declined to attend any hearings from the Finance Committee of the Federal Republic of Somalia Parliament, believing he is above the law
  • Central Bank employees are being coerced into processing illegal transactions under threats of salary cuts, demotions, or loss of vacation days
  • Prof. Njuguna Ndung’u, former Governor of the Central Bank of Kenya and current Cabinet Secretary of National Treasury and Economic Planning of Kenya, was hired as a consultant from September 5th to 8th of 2022, but he never visited Mogadishu. Despite his absence, funds amounting to US$10,500 as consultation fees and US$5,145 and US$720 for hotel and meals, along with a business-class ticket, were withdrawn and approved by the Governor. Mr. Njuguna Ndung’u, the former Kenya Central Bank Governor, is under investigation for financial crimes
  • Hiring of consultants and advisors is based on political favoritism rather than merit
  • The son of the Minister of Justice and Constitution, without any experience or educational qualifications, was hired to work in the Research and Economics Department
  • Similarly, a relative of the State Minister of Foreign Affairs was hired as an intern for a couple of months and was recently given a full-time position in the Procurement Department without having any relevant experience or educational background
  • Reports submitted to the IMF and World Bank are being falsified to meet debt relief and Extended Credit Facility (ECF) review benchmarks
  • The Ministry of Petroleum deposited US$2,674,732 at the Central Bank of Somalia Treasury Single Account (TSA) from SHELL Oil Company in January 2022. However, these funds were never accounted for in the budget Proposal submitted by the Ministry of Finance as revenue
  • Funds recovered from foreign banks, in particular a USD $7.5 million recovered from an Italian bank was never deposited into the Central Bank of Somalia’s Treasury Single Account and has disappeared into thin air

In concluding his second LETTER to President Hassan Sheikh Mohamud, MP Abib writes, “Mr. President, I appeal to your sense of duty and responsibility to take immediate and decisive action to address these critical issues. The future of our nation depends on our ability to uphold the principles of justice, accountability, and transparency. It is only through such measures that we can build a prosperous and stable Somalia for future generations.”

Contributed to by Daljir staff members in Mogadishu and Garoowe

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