HEADLINES:

Somali Officials Misrepresent IMF Statements and Reports

0
Sunday December 30, 2018 - 04:33:55 in Articles by Super Admin
  • Visits: 3567
  • (Rating 4.0/5 Stars) Total Votes: 1
  • 0 0
  • Share via Social Media

    Somali Officials Misrepresent IMF Statements and Reports

    Somalia suffers from the disgraceful culture of leaders and politicians invoking deceptively legitimate documents like the Provisional Constitution for bolstering false claims and arguments or for obfuscating critical search for truth. That culture h

    Share on Twitter Share on facebook Share on Digg Share on Stumbleupon Share on Delicious Share on Google Plus

Somalia suffers from the disgraceful culture of leaders and politicians invoking deceptively legitimate documents like the Provisional Constitution for bolstering false claims and arguments or for obfuscating critical search for truth. That culture has undermined the requirement of truth, good faith, and accountability in the public life and dashed the public hope for democratic state of Somalia governed by the rule of law and democratic values.

Under such culture, federal government officials responsible on financial and economic affairs are frequently citing press statements or reports of the International Monetary Fund (IMF) staff as evidence supporting their claims of integrity and good performance in public financial management and economic accomplishments. Those officials are fully aware that their offices did not provide comprehensive official account on budget execution in 2017 and 2018 (past 10 months), accumulated arrears, off budget revenues, foreign aid shortfalls. Also, they did not respond to allegations of misuse of Saudi Arabia funds, fishing contracts with Chinese company, monthly secret cash transfer from Qatar Government, and pervasive mismanagement of Mogadishu local government finances. The 2018 report of Financial Governance Committee (FGC) chaired by the Minister of Finance affirms, "The majority of the expenditures submitted by FGS at the end of 2017 for reimbursement under the non-salary component of the World Bank Recurrent Cost Reform Financing (RCRF) facility were deemed ineligible as agencies had failed to adhere to the required procurement processes.”

Nothing said in the IMF Staff and Executive Board statements and reports support the financial integrity and accomplishments claimed by the federal government officials. To the contrary, the statements and reports describe the corruption, weak (repressive) governance, insecurity, and political conflicts prevailing in the country in 2017-2018. Therefore, the officials are either engaged in dishonest propaganda deliberately intended to mislead the public unfamiliar with the IMF staff statements and reports or lacked genuine comprehension of the information in the press statements and reports. 

The first paragraph of the  press statement released on December 10, 2018 by Mohamed H. Elhage, team leader of IMF staff mission says, "the views expressed in this statement are those of the IMF Staff and do not necessarily represent the views of the IMF’ Executive Board. This mission will not result in a Board discussion.” From this, it should be clear that the informal agreement of Staff-Monitored Program (SMP) between Somali officials and IMF staff should be used in its limited sense. The SMP serves to establish track record of the government behavior on implementation of economic policy reform and on governance. 

By the end of 2016, the implementation of SMP I was satisfactory. IMF Executive Board of Directors commended "the [Somali] authorities for the significant progress made in rebuilding the economy and restoring key economic and financial institutions in a difficult political and security environment.” That language has not been beaten after 2 years. The Somali officials should be embarrassed by the fact that they meet IMF staff in Nairobi, Kenya because the latter can’t visit the country since 2013 for security reasons. 

 The cited press statement predicts the failure of achieving the projected 2018 GDP growth of 3.1 % and Inflation rate of 3.5 % because of the fall of the international support. This happens after the unfulfilled projection of 2017 GDP growth rate of 2.3 % and inflation rate 5.5 %. Two consecutive years of low or negative GDP growth worsens the poverty condition of the country. 

The Federal Government failed to tackle from inauguration the impediments to peacebuilding and statebuilding agenda extensively explained in SMPs, FGC report, 2017 London Partnership agreements and Security Pact. To the bewilderment of the majority, it chose to attack the Federal Member States and to disregard the rule of law, justice, respect of freedom of expression, assembly and movements, free and fair election, and respect of human rights, checks and balance, and accountability, by using violence, intimidation, and corruption. The international partners of the federal government - the UN, US, UK, EU, and AU - seem complacent about the destructive actions of a "triumvirate” who monopolized the state power to destroy the nascent democratic system of governance. Apparently, in Somalia, there is a shift from pro-democracy support to pro-autocracy support. 

The IMF staff statement specifically demands the approval of the Targeted Financial Sanctions Law and capacity development at the Financial Reporting Center (FRC) to safeguard the inflow of remittance in Somalia. It also stresses the acceleration of the financial sector reform, particularly strengthening the licensing and supervision department of the Central Bank of Somalia (CBS), and regulating the mobile money sector. The pace for Public Financial Management (PFM) reform is still disappointing. 

The IMF has offered the largest technical assistance to Somalia in the area of fiscal and monetary policy reform, and institutional capacity building. Unfortunately, poor leadership, corruption and civil servants attrition, lack of transparency and debate within federal institutions have impaired the impact of SMP programs. To implement the wide-ranging elements of the SMPs, Somalia needs visionary, law-abiding, competent, and righteous leadership.      

 Many SMPs will follow the end of SMP III in mid-2019 to achieve debt relief eligibility under the Initiative of Highly Indebted Poor Countries (HIPC). The international support is declining at a time Somalia needs strong support from creditors and donors for debt relief. Another hurdle to consider, IMF lacks the resources needed to cover Somalia’s debt relief if Somalia becomes eligible sometime in the future.  

The IMF staff supports from behind two initiatives pursued by the federal government: the currency printing and the preparation of Ninth National Development Plan (NDP9) for 2020-2024 which overlaps the Interim Poverty Reduction Strategy Paper (I-PRSP) required for debt relief process. The 1st phase of the currency reform will focus on printing only 1,000 banknote Somali Shilling. Not only lack of fund for currency printing but also lack of independence and weak institutional capacity of the CBS and confusion around the federal system would be major obstacles to currency reform and macroeconomic management in general.

The two positive words for the federal government in the IMF staff statement are: 1. the 8 million dollar excess over the estimated first 8 month domestic revenue of 2018; 2. the rhetorical commitment of the federal government to SMP implementation. However, there is a huge gap between the long list of urgently needed reforms to be fulfilled in 4 year tem and the current sluggish performance of the federal government despite the largest IMF technical assistance. The march towards peacebuilding and statebuilding is halted by the aggressive obsession with 2020/2021 reelection agenda, including the paralysis of the constitutional institutions for accountability and respect of the rule of law.  


Mr. Mohamud M Uluso

[email protected]

Share on Social Media

COVID-19 guidance for journalists and media houses in Somalia

ASOJ.ORG - Associated Somali Journalists has today published New guidance (advices) setting out how journalists and media houses in Somalia can meet their media duties as they navigate the effects of the coronavirus pandemic. Full Article

 

Somali Goverment turned Into an instrument of Revenge.

Remember Somali Goverment hijacked the elections of Hirshabelle, Southwest, and Galmudug states, while Jubbaland and Puntland people have fended their states from being aggressively and corruptly hijacked like other three states. Full Article

 

U.S. and EU Diplomats Support President Farmajo to Tear Somalia Apart

After 30 years of dictatorship and civil war, the Somali people pulled off a qualified consensus on forming a new state that is different from the obliterated one. The President of the Federal Republic of Somalia is vested with the awesome responsibility and authority to steer the formation of the new state. Successive elected presidents strived to some extent to fulfill their awesome responsibilities with the exception of President Mohamed Abdullahi Farmajo who strived to tear Somalia apart for good. Full Article

 

Somaliland:Government Blocks Entry of Alternative Fibre Optic Cable

Waagacusub.com - The government of Somaliland denied that it had any advance information of a submarine fibre optic internet cable entering the country from Berbera. Full Article

 

Al-Shabaab collected an estimated $20 million dollars from South Somalia alone - Per month

Al-Shabaab is more than just a terrorist group. In 2011, its annual revenue was in the region of $70–100 million per year. In 2018, the President of the Somali Chamber of Commerce and Industry (SCCI) confirmed that Al-Shabaab collected an estimated $20 million dollars from South Somalia alone. Full Article

 

Somalia A Divided Legacy: Hormuud Telecom and Political Islam

The Chairman of Hormuud Telecom Group Ahmed Nur Ali Jim'ale was a kingpin in Al-Shabaab's charcoal-sugar trading cycle that funded its activities. In September 2010, he founded ZAAD, a mobile-to-mobile money-transfer business that struck a deal with Al-Shabaab to make money transfers more anonymous by eliminating the need to show identification. Full Article

 

Somalia:Hormuud Telecom is the backbone of the terrorists in east and Horn of Africa

Somalia: List of former Hormuud Telecom staff members who joined the terrorists. 1- Former Al Shabab leader Ahmed Godane was a member of Al-Barakaat group in Hargeisa. 2- Head of Amniyat branch of Al Shabab Mahad Karate was part of Al Barakat group in Mogadishu. Full Article

 

Somalia: Al-Shabaab taxation via a network Hormuud Telecom $30,000 per day – $10 million a year.

UN Report says Al Shabab militants run tax system to rival Somalia's federal government Via Hormuud Telecom. Full Article

 

After embrace of war criminals, time to cut off Somalia

The annual U.N. General Assembly is an orgy of symbolism. Who meets whom on the sidelines? Who tried but failed to secure a meeting with the U.S. president? Who walks out of whose speech? Whom do security officers intercept when they try to exceed the permissions of their visa? Full Article

 

Somalia:Ilhan Omar Calls for the Protection of a Notorious TERRORIST COMPANY

Rep. Ilhan Omar has publicly declared her support for a notorious organization known for its terrorist leadership and financing of terrorism. But it almost went unnoticed, until the tweet was brought to my attention. On the 26th of August, Rep. Ilhan Omar made the following tweet: Full Article

 


Leave a comment

  Tip

  Tip

  Tip

  Tip

  Tip


COVID-19 guidance for journalists and media houses in Somalia

ASOJ.ORG - Associated Somali Journalists has today published New guidance (advices) setting out how journalists and media houses in Somalia can meet their media duties as they navigate the effects of the coronavirus pandemic.

Somali Goverment turned Into an instrument of Revenge.

Remember Somali Goverment hijacked the elections of Hirshabelle, Southwest, and Galmudug states, while Jubbaland and Puntland people have fended their states from being aggressively and corruptly hijacked like other three states.

U.S. and EU Diplomats Support President Farmajo to Tear Somalia Apart

After 30 years of dictatorship and civil war, the Somali people pulled off a qualified consensus on forming a new state that is different from the obliterated one. The President of the Federal Republic of Somalia is vested with the awesome responsibility and authority to steer the formation of the new state. Successive elected presidents strived to some extent to fulfill their awesome responsibilities with the exception of President Mohamed Abdullahi Farmajo who strived to tear Somalia apart for good.

Hormuud telecom and Al-Shabaab's Strategy of Destroying Mobile Communication Masts

Hormuud's Assault on African Peacekeepers Figure 14: African Peace Keepers Hormuud launched a scorching public campaign against the Kenyan military forces in AMISOM in late August 2019.

Hormuud Telecom, Taaj Express, Salaam Bank and Dahabshiil Money Transfer directly pay taxes to Al-Shabaab.

But Al-Shabaab derives the bulk of its funding for its operations from taxing business people and most lucrative companies in Mogadishu and control of most businesses in rural Somalia. 51 -Over the years, the terrorist group has established a well-structured and oiled taxation infrastructure supported by courts, road tolls, and loyal revenue payers. At the edge of the knife, the group's operatives demands that all business people and companies pay tax to its agents.

Djibouti:Protect Jailed Air Force Pilot's Rights

Allow Peaceful Protests, Protect Media Freedom Djibouti's authorities should impartially investigate alleged mistreatment of a detained former air force pilot and ensure that his due process rights are respected, Human Rights Watch said today. The authorities have repressed peaceful protests that broke out in response to the pilot's detention. Full Article

 

COVID-19 guidance for journalists and media houses in Somalia

ASOJ.ORG - Associated Somali Journalists has today published New guidance (advices) setting out how journalists and media houses in Somalia can meet their media duties as they navigate the effects of the coronavirus pandemic. Full Article

 

Somali Goverment turned Into an instrument of Revenge.

Remember Somali Goverment hijacked the elections of Hirshabelle, Southwest, and Galmudug states, while Jubbaland and Puntland people have fended their states from being aggressively and corruptly hijacked like other three states. Full Article

 

U.S. and EU Diplomats Support President Farmajo to Tear Somalia Apart

After 30 years of dictatorship and civil war, the Somali people pulled off a qualified consensus on forming a new state that is different from the obliterated one. The President of the Federal Republic of Somalia is vested with the awesome responsibility and authority to steer the formation of the new state. Successive elected presidents strived to some extent to fulfill their awesome responsibilities with the exception of President Mohamed Abdullahi Farmajo who strived to tear Somalia apart for good. Full Article

 

Somaliland:Government Blocks Entry of Alternative Fibre Optic Cable

Waagacusub.com - The government of Somaliland denied that it had any advance information of a submarine fibre optic internet cable entering the country from Berbera. Full Article

 

Hormuud telecom and Al-Shabaab's Strategy of Destroying Mobile Communication Masts

Hormuud's Assault on African Peacekeepers Figure 14: African Peace Keepers Hormuud launched a scorching public campaign against the Kenyan military forces in AMISOM in late August 2019. Full Article

 

Former Intel official stripped from NISA membership

Former Intel official stripped from NISA membership Full Article

 

PM KHEYRE USELESS AND COSTY OVERSEAS TRIPS.

PM KHEYRE USELESS AND COSTY OVERSEAS TRIPS. Full Article

 

Abiy says 'New Year' will be celebrated in Eritrea, Ethiopian Airlines to resume flights

Abiy says 'New Year' will be celebrated in Eritrea, Ethiopian Airlines to resume flights Full Article

 

Massive rise in Islamist militant attacks in Africa

Massive rise in Islamist militant attacks in Africa Full Article