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Saturday, September 21, 2013

Somaliland: Qaran Kale u Qiil doon, Kaagana ka Ceeb Sheeg





By Diiriye Nabadoon

Qofka caadiga ah ee dareenka, damiirka iyo diinta lihi waa kala yaqaanaa waxa u dan ah naftiisa, waxa u dan ah dadkiisa, waxa u dan ah dalkiisa iyo waxa aan ceeb mooyee ceelalyo lahayn. Qofka garaadka lihi kuma faano ceebta. Waa ka murugooda. Waa la dhuuntaa. Ilaahay ayuu dembi dhaaf weydiistaa. Bulshada uu la nool yahay ayuu wejiga ka dadba oo u muujiyaa inuu qaldamay – siyaabo kala duwan.

Waxa deegaan ama shacab ama ool wada deggan u dhexeeya oo aan qofna goonni ula soofi Karin, mid kalena aan keligii xil ka saarnayn, ee dadkaba u dhex ah, waxa ka mid ah nabadgelyada, xornimada, qawmiyadda, sumcadda qarannimo iyo astaamaha dawladnimo ee calanku ka midka yahay,
oo aan marnaba loo quudhin hoos u dhac cidna kaga timaadda.

Somaliland haddii aynu u soo noqonno, waxa beryahan dambe  caan ku noqotay in la jeclaysiiyo belada iyo baaska, oo dadkeedii karaamada lahaa, hoos uga rogtaan kii duminayey.  Saaykoolajiga waxa jira aragti ka mid ah oo tidhaahda ku celceli weedh ama fal si indhuhu u qabatimaan, qalbiguna u qaayibo (conditioning). Tusaale ahaan, haddii waxa aad tidhaahdoba inta kaa ag dhowi mar walba kaaga fal celiyaan ‘waa been!

Waa been!’ waxa aad marka dambe adiga laftaadu aaminaysaa inaad beenaale noqotay, oo dadku kaa saxsan yihiin.  Waydiin, odhaah noqotay, Soomaalidu aad u jeceshahay marka cid jid la qabadsiinayo ayaa ah “wadar iyo waaxid ayaa mudan?”,  iyada oo mar walba lagu jawaabayo “Wadar”, halkaana uu ku gar waayo ‘waaxidkii’ – xataa marka uu isagu saxsan yahay ama cilmigeeda leeyahay masaladaa laga hadlayo.

Bal hadda u fiirso, oo isku tijaabi – adiguba – layligan hoose.

Calaamadi ‘Run’ ama ‘Been’. Marka aad dhammyso adigu qiimee heerka
waddaniyadaada:

1.    Mucaaradku mar walba waa sax                  ___Run ____Been
                                          
2.    Mucaaradka ayaa ka mas’uul ah hoggaaminta qaranka        ___Run ____Been

3.    Xukuumadda ayaa xilka kowaad ee qaranku saaran yahay    ___Run ____Been

4.    Xildhibaannada Waddani ee Baarlamaanku waa shakhsi weerar    ___Run ____Been

5.    Xildhibaannada Kulmiye hadalku waa ka mamnuuc, illayn waa Kulmiyee     ___Run ____Been

6.    Cayda iyo Been-sheeggu waa u xalaal mucaaradka  ___Run ____Been 

7.    Qaranka in la daafacaa waa guulwadayn        ___Run ____Been

8.    Qaranka in ceebtiisa la baahiyaa waa aftahannimo    ___Run ____Been

9.    Saxaafadda Somaliland Waanaagga dalka ayay qortaa             ___Run ____Been

10.    Saxaafadda Somaliland xumaha qaranka ayay falkisaa           ___Run ____Been

11.    Lama akhristo saxaafadda haddaanay been iyo belaayo qorin           ___Run ____Been

12.    Shacabku waxay ku raaxaystaan belo-sheegga, beenta, warka hebel ku xumeeda ah      __Run__Been

13.    Qofkii samaha ama danta qaranka  ka hadlaa waa ‘guulwade’            ___Run ____Been

14.    ‘Wegertu’ dalka ayay dhistaa            ___Run ____Been

15.    ‘Wegertu’ waa qaran-dumis cilmiyaysan     ___Run ____Been

16.    Shacabka Somaliland karaamo, diin, damiir iyo waddaniyad ma leh ___Run ____Been

17.    Shacabku diin iyo waddaniyad waa leeyihiin ee been baa hafisay     ___Run ____Been

18.    Cadawgii Somaliland dhexdeeda ayuu  kala dagaallamaa      ___Run ____Been

19.    Xukuumadda iyo Somalia waa saaxiib dhow               ___Run ____Been

20.    Mucaaradka iyo Somalia waxa ka dhexeeya Somaliland-dumin         ___Run ____Been

Dhamana Qoraalkaa aan la ka soo qoray Ma Runbaa Mise Waa Been       ___Run ____Been

By Diiriye Nabadoon

dnjire@gmail.com

Source: togdheernews.com

Statement of H.E. Hassan Sheikh Mohamud: Woodrow Wilson Center Speech





Washington DC, 20 September 2013

Honourable Keith Ellison, Congressman, Minnesota’s 5th Congressional District Jane Harman, Director, President and CEO, Woodrow Wilson Center

Distinguished participants, Ladies and Gentlemen,

I am pleased to present my appreciation to the Wilson Center for this invitation to discuss “Somalia one year on”. After all, it was Woodrow Wilson who once famously said: “it is just as hard to do your duty when men are sneering at you as when they are shooting at you.” Therefore, it is important to note that leading a country of Somalia’s nature is not an adventure or conventional in which one leader replaces another just by virtue of inheriting a functional office, state apparatus, systems, instruments and institutions amassed with relevant memory. Instead it is about inheriting a fragmented country where everything has to be started from the scratch, and firefighting in all fronts remains order of the day. On a positive note, although challenges are varied and more than expected, we have inherited a skeleton to build-on and new pages demonstrating a shift from the past, albeit empty. Every area or agenda reflected deserved an immediate attention and priorities with a sense of urgency to address. and I believe that after one year on the job, we are making slow but steady progress. And it is that progress that I am here to speak to you about today.

After one year in office, we have made some modest progress. We have achieved a level of normalcy; we have established a degree of governmental authority, created hope for governance in the population, My government had presented to the world a set of priorities and plans that is not only budgeted but illustrates the financial architecture that regulates the cash flow and provides mechanism for disbursement which levels the highest standards of transparency and accountability. I can say, Today’s Somalia has a plan for those who want to assist.

Greater achievements still lie ahead, but so too do greater challenges: the security situation is still fragile, the government is still heavily dependent on aid from the international community and many of our citizens are still unconvinced about the plans we have for the future. The latter is to be expected: after decades of civil war, dozens of external interventions and numerous transitions, the Somali people have earned the right to be sceptical.

It is the duty of my government to prove the sceptics wrong: to lay the foundations for a Federal Republic of Somalia that will be strong, stable and united, and in which the principles and practices of democracy are realised at all levels of government. We must build not only the Federal Member States, but also the connective tissue that binds them together in a peaceful, prosperous and vigorous union.

To achieve this, we must come to terms with three main challenges: we complete our Constitution in a way that reflects a national consensus on how we wish to govern ourselves. We must complete the establishment of our federal system, and we must advance the process of democratization through development of a multiparty electoral system that will serve to unite us, rather than to divide us.

1) The Constitution

The process of reviewing the Provisional Constitution has already begun. On 3 July 2013, Parliament passed legislation establishing an independent Constitutional Review and Implementation Commission and we must now move quickly to appoint the Commissioners who will lead this effort. But the challenge of constitution-making cannot be left to a small, popularly unelected body, no matter how competent. It will require months of consultation, negotiation and compromise to ensure that the new Constitution reflects the vision and aspirations of all parts of Somali society. And it must then be approved by Parliament and submitted to a nationwide referendum.

2) The Federal System

Our second major challenge is to develop, in concrete terms, a federal system of government. To this end, we must move urgently to establish the Boundaries and Federation Commission that will propose the demarcation of Federal Member States on the basis of political, economic and social considerations.

Meanwhile, my government has taken important steps to lay the political foundations for the federal system. In March this year, we signed an agreement with the authorities in Puntland, framing our shared commitment to implement a federal system of governance. We must now translate this agreement into reality, integrating our security forces, establishing modalities for resource and revenue sharing, and coordinating our policies and programmes.

In August, we signed an accord that establishes an interim Jubba Administration, which aspires to become a Federal Member State in line with the Constitution. Under the terms of the Jubba agreement, critical national assets will be restored to Federal Government control, our forces will be integrated, and we will work together to develop an inclusive, representative and permanent authority for the people of that region.

As we speak, leaders of the Federal Government including the Speaker and the elders from Bay and Bakool regions are meeting in Baidoa to promote reconciliation, discuss plans for a merger that would potentially lead to another regional administration. We welcome these local initiatives, and we urge those leaders to approach this initiative in a spirit of reconciliation, compromise and respect both for one another, and for the communities of neighbouring regions who may be affected by their actions and are watching their deliberations closely. As the Federal Government, we have a duty to ensure that such state-building efforts progress through dialogue, and do not undermine our parallel efforts to restore peace and security.

We have begun similar processes elsewhere in Somalia, establishing interim administrations in Lower Shabelle, Middle Shabelle, Hiiraan and Galgaduud regions. We have engaged the authorities in Galmudug and Himan iyo Heeb, as well as Ahlu Sunna wal Jama’a, to solicit their views and commitment as we expand the process of peace building and state building across southern Somalia. In these regions, where the contours of potential Federal Member States have yet to emerge, we must proceed with great sensitivity. The process of federation can only succeed if it reflects and respects the will of the local people, not if it is imposed from the capital.

And lastly, thanks in large part to the good offices of the Government of Turkey, we have continued our dialogue with the authorities in Somaliland, underscoring our determination to preserve the unity of both the Somali state and the Somali nation, not by force and coercion, but through negotiation, mutual respect and understanding. Somali unity must be more than a rhetorical device: it must preserve and promote the dignity, equality and legitimate aspirations of all Somali citizens. By adhering to such principles, we are confident that our dialogue with Somaliland will not only continue, but will eventually bear fruit.

Democratisation

The third major challenge we face is democratisation. In the near term, this will involve the establishment of an Independent National Electoral Commission, and the design of a multiparty electoral system that should unite the Somali people – not divide us further.

This is not simply a mechanical process, to be measured against benchmarks and timelines. In order for these institutions to play their intended roles, the appointment of experienced, qualified Commissioners who represent the full diversity of views in our country will be just the first step in building public confidence. Equally important will be a process of genuine consultation, in which Government, Parliament and the Commissions complement one another’s efforts to ensure that all voices are heard. We have undertaken consultations in some parts of the country in support of the New Deal initiative. But in future we must work even harder to ensure that our national dialogue is even more open and inclusive.

Vision 2016

To ensure that we do not lose sight of these challenges, and that our core state-building and peace-building objectives are realised by the conclusion of my term of office in September 2016, I am launching a Presidential Initiative known as ‘Vision 2016’. Vision 2016 signals my government’s commitment to complete the Constitution, establish the federal system and prepare the ground for elections, and to ensure that we dedicate the leadership, determination, discipline and resources required for success.

I need not tell you that such things are more easily said than done – especially for a fragile state, ruined by the experience of civil war and statelessness. And as we roll out the targets and timelines for realisation of Vision 2016, we will be looking to our partners for support. We will need not only technical and financial assistance, but also political and moral support. We are a young nation, and an even younger federation, and so we will be looking to other nations of the world – especially the United States – to share with us your long and successful experience of federalism and constitutional government.

Service Delivery: we want to revolutionize the governments connection with our citizen, we need to transform the lives and enhance their well being, in the meantime, we have started a campaign for education, health and water. Our initiative, ONE Million Go Back to School Initiative, we are planning to open 72 schools, in 72 districts, hired 1,000 teachers across the country and planning to send 100,000 students to the schools at this year and ultimately the one million will be our destination.

Remittances

Before I conclude my speech, I feel obliged to raise the imminent closure of foreign bank accounts upon which Somalia’s remittance lifeline depends. Estimates place remittance flows to Somalia at over US1.3 billion per year – far more than humanitarian or development aid – and sustaining millions of people. Somali immigrants work very hard to earn legitimate income, which they save and send to their poorer, war-affected relatives throughout Somalia and East Africa – including hundreds of thousands who abide the squalor of vast refugee camps. This money finances consumption, trade and education in Somalia.

In the absence of a formal banking system, the movement of these funds is dependent upon Somali money transfer organisations. The scheduled closure, at the end of this month of UK-based accounts held with Barclays Bank, threatens to disrupt, if not destroy, this vital economic link.

We recognise that Barclays and other banks have legitimate concerns about money laundering and terrorist financing. We share those concerns and we recognise that we must urgently strengthen the regulatory framework for our finance and banking sectors, but we must do so in a way that does not punish those most in need. We urge Barclays to give this plan time to work, and to join our efforts to make remittance flows safe, transparent, and compliant.

Friends, Ladies and Gentlemen,

It is my hope that policymakers in the United States will be sympathetic to our vision and help us achieve it. And here I am not just talking about aid: the sooner we can stand on our own feet the better. But I am talking about enhanced trade and cooperation. We want American companies to invest in Somalia and discover the talents of our people. We want our universities to collaborate with American Universities in teaching and research. We want investors to partner with us in making our land, our resources and our labour market more productive.

And as war and terrorism steadily become things of the past, we hope to open our doors to tourism: Somalia’s future looks as bright as its beaches and all of you are invited. We are under no illusion about the challenges implied by that invitation. Today, the country is over-militarized and under-policed and Al-Shabaab remains a menace. Together, we need to reverse it and I assure you that the situation is improving all the time, and that my government will leave Somalia in much better shape than we found it. So I challenge those of you in this room to pack some bags and come visit us in Somalia. I guarantee that you will not be disappointed.

Thank you very much

ENDS

Abdirahman Omar Osman (Eng. Yarisow)

Senior Advisor & Spokesman

Office of the President

Federal Republic of Somalia

engabdirahman@gmail.com, yarisow@presidency.gov.so

Remarks With Somali President Hassan Sheikh Mohamud Before Their Meeting

Remarks
John Kerry
Secretary of State
Washington, DC
September 20, 2013

SECRETARY KERRY: Good morning, everybody. It’s my privilege to welcome to Washington and to the State Department His Excellency, the President of Somalia Hassan Sheikh Mohamud. Actually, I’m welcoming him back to Washington, and we have met previously and I’m very pleased to be able to welcome him here.

The United States, obviously, has been engaged in helping Somalia fight back against tribal terror and the challenges to the cohesion of the state of Somalia. And the President and his allies have really done an amazing job of fighting back and building a state structure. There’s work yet to be done in Puntland and Somaliland, and we encourage you to continue the work of reaching out, of reconciliation and rebuilding the democracy, and I know he’s committed to that.

Also, I want to thank the President for his rapid support of the Joint Statement on Syria. We appreciate that kind of global recognition of what is at stake in Syria.

And finally, I’d just say that Somalia is working hard now to create its own ability to defend itself, to defend the state. We will continue to work. There is a United Nations mission there. We are committed to both – to the independent ability of the state of Somalia as well as the United Nations mission to help it in this transition. And we’re very happy to welcome the President here to talk today about issues of mutual interest.

Thank you, Mr. President.

PRESIDENT MOHAMUD: Thank you. Thank you, Secretary. And it’s – really, it was a pleasure and privilege to be here again this year in the State Department and the United States. And we – as the Secretary said rightly we’re working very hard together to establish the national institutions in all areas, particularly in security, where we are working very hard with the UNOSOM forces, and our national army is now taking shape and building up, of course, with the support of the United States Government that has always been with us. And this is a time we came here to share the ideas, the way forward we have, and particularly, the Vision 2016, where we want Somalia to go into the poll stations and make a voting for the first time in 40 years – more than 40 years, even.

And as you rightly said, we have been engaging with different stakeholders in Somalia. The federal government has the leadership, the parliament, all visiting different corners of Somalia to consult on this event. And the product of that consultation was the recent compact document signed in Brussels of the 16th of this month. I, myself, and the Prime Minister, the Speaker of the House, the parliamentarians, key ministers have been traveling all over Somalia. Although the situation in traveling locally is very difficult, but even then, you have to sit with the people, listen them, share with them the plans that we are intending, and asking them the type of Somalia they want to see in the future.

So based on that, we have signed agreements with Puntland State, and recently agreement with the Jubba regional administrations. And of course, we also did the same with Ahlu Sunna Wal Jama’a in the central region. So it takes some time. We have our own differences, but we are in a better shape than ever before now. We’re shaping for the first time a united and federal Somalia. The constitution is progressing and the federal system is working very hard. This federal government is working on all its capability to establish the federal unities in an orderly manner and with – in accordance and compliance with the federal constitution.

So there’s a huge progress that is going on in Somalia, and again, we are very much grateful with the support we received from the United States Government through bilateral and through multilateral. Thank you very much.

SECRETARY KERRY: Thank you, Mr. President.

PRESIDENT MOHAMUD: Thank you.

SECRETARY KERRY: Thank you, sir, very much. Please come. Thank you.

Urgent News: Canadian teen brothers jailed in Somaliland

Mississauga dad wants help to free his Canadian-born sons, sent to visit their grandmother, from an African prison.

/ Family photo
Jamal Noor, 15, has been in a
Somaliland prison ever since
police stormed his grandmother's
home on July 24.

By: Gemma Karstens-Smith Staff Reporter,

Two Mississauga teens have been jailed in Africa for more than a month, their father says, since taking a summer trip to visit their grandmother.
Mohamed Noor sent sons Liiban, 18, and Jamal, 15, to Somaliland in June. The Canadian-born brothers had never been to the tiny East African territory, an autonomous region within the borders of Somalia that considers itself independent.
The vacation was interrupted on July 24, Noor says, when police officers stormed into their grandmother’s home.
“They came to the house with special forces. They terrorized the house,” Noor alleges. He says the boys were accused of raping a young woman, the cousin of a politician.

A week later, Liiban and Jamal were sentenced to 10 years in prison, Noor says.

Their father alleges there was no investigation of the allegations, and no trial, and that the brothers weren’t even able to speak with a lawyer.

He says the boys didn’t know the girl involved. They say they didn’t know any young people in the area, in part because they don’t speak the local language.

Canada’s foreign affairs department is “aware of the arrest and detention of two Canadian citizens in the territory of Somaliland,” a spokesperson for the department said in an email. The Canadian Embassy in Nairobi is providing consular services to the family.

The department declined to release any other details on the case, citing the privacy of the individuals concerned.

Calls and emails by the Star to several agencies and politicians in Somaliland were not immediately returned.

Noor alleges the teens were hauled off to the police station for a forceful interrogation.

“(The police) beat them up so bad. They tortured them. They told them, ‘You have to admit it,’ to something they didn’t do.”

Noor left his Mississauga home for Somaliland as soon as he could, his wife and three younger children in tow. He’s bent on getting his boys out of jail, but says the fight has been frustrating and costly.

“I tried to do something, but nobody can give me any details,” said Noor, who moved to Canada from Somalia more than 25 years ago.

Noor says he is allowed to visit his sons for five minutes once a week, on Mondays. They’re housed in overcrowded cells with inmates more than twice their age.

He says he sees bruises and wounds on their bodies, and hears them talk of being hit and threatened.

“They keep asking, ‘What happened, why are we here?’” Noor said. “They cannot understand.”
While Liiban speaks a bit of broken Somali, Jamal can’t communicate at all in the native language of his captors.

“It’s very difficult. It’s very, very difficult,” their father said. “I don’t even sleep. I can’t. I have nightmares. I cannot sleep with my kids sitting in there.”

Noor has done everything he can think of to win the boys’ freedom. He says he calls Canadian consular officials dialing seeking updates on his sons’ case. But there’s been little progress, and he feels Canadian officials could do more to help his boys.

“It’s very slow,” he said. “I feel helpless now.”
Somaliland officials have been of little help. Setting up meetings with officials takes weeks, Noor said, alleging that some demand bribes before handing over any information.

“They think we have a lot of money or something because we are from Canada,” said Noor, who works as a truck driver in Mississauga.
Noor’s life is now consumed with trying to free his sons. All of his children should now be back in their Mississauga schools, and Noor back to work. But the distraught father feels stuck in Somaliland, unwilling to leave without Liiban and Jamal.
“We cannot leave our kids here,” he said. “We don’t want to leave them behind.”

Friday, September 20, 2013

In Somalia’s battle-scarred capital of Mogadishu, improving security sparks real estate boom



By Associated Press,


MOGADISHU, Somalia — Mohamed Nor’s phone rings constantly, kept busy by the property hunters who want to own a piece of Mogadishu. Other clients sit on a chaise longue inside his airy office in the battle-scarred Somali capital, waiting patiently for the real estate agent’s attention.
“Yes, we have any sort of property,” Nor tells one caller. “Come to me today so I can show you some.”
This seaside city’s real estate market has seen an upsurge in demand over the last two years, thanks in large part to security gains made following the ouster of the al-Qaida-linked insurgents of al-Shabab. Although Mogadishu and other parts of Somalia are still a long way from firm stability and suffer the occasional militant attack, property brokers such as Nor now answer the many calls of ordinary Somalis who want to invest their money at home.
The real estate boom started with the arrival of aid agencies that assisted thousands of famine-hit Somalis in 2011. Those foreign aid workers who briefly moved into Mogadishu paid higher rents. More and more houses are now available for sale or rent, in part because landlords appear eager to tap into the influx of new arrivals from the diaspora.
On a recent morning, as Nor sipped strong coffee in his office, two portly men arrived and asked to be shown around. He stepped out with the potential buyers, pointing here and there at newly built houses for sale. When the men settled on a gritty stone house located near the presidential lodge, negotiations with the owner quickly commenced and a deal was sealed within hours: $900,000.
That figure was unthinkable two years ago, Nor said, estimating that such a house would not have fetched more than $80,000 at a time when the city was largely covered in rubble amid fierce fighting between African Union-backed government troops and al-Shabab fighters.
The $900,000 deal illustrated dramatic changes in the property sector of a country where many still live on less than $1 a day. The appearance of growing security may be encouraging speculation, piling pressure on poor Somali families who cannot afford higher rents. Many have been evicted after failing to pay rising monthly rents.
“We were sadly left at the mercy of merciless landlords,” said Sahra Hashi, a mother of six who was forced to move out of her long-time residence after her landlord increased the rent. “Life is getting tougher for us.” The monthly rent was raised from $450 to $1,500 — a figure that she believes could only be afforded by expatriates such as the one who has since occupied the house.
Sensing the possibility of higher returns, some landlords are subdividing their properties into smaller units to accommodate more tenants.
Yusuf Abdiqadir, a father of two who pays $500 for a one-bedroom apartment in Mogadishu, said a lack of many housing options leaves some tenants especially vulnerable to landlords who raise the rent on short notice.
One real estate agent, Liban Hashi, said it is simply “good business” that property prices have more than quadrupled in a couple of years in this hardscrabble city.
Both Nor and Liban said they can make up to $10,000 in commissions weekly, about as much as they used to earn yearly when Mogadishu was still in the grip of al-Shabab. The most desirable, and expensive, houses tend be located closer to the sea or the seat of Somalia’s government, where security is believed to be tighter, brokers said. Some residential houses have been sold for as much as $3 million, according to Nor.
The brokers owe their success in part to the aura of chaos that still pervades Mogadishu, where it is hard to collect taxes and the economy depends on a thriving informal sector. Properties are not advertised in the media, and real estate agents, who are often middle-aged Somali men, get their information by walking the streets of Mogadishu and seeking out potential sellers. In open restaurants and spots within the sprawling Bakara market, potential buyers meet brokers and consider possible deals.
The informal nature of the property market encourages scams and land disputes, producing dozens of land claimants with title deeds who attend court in Mogadishu each week to settle land disputes.
Halimo Sheikh Ahmed, a Somali-American woman who says she is locked in a dispute with a man who claims ownership of her father’s land, described Mogadishu’s property market as “complicated.”
“They get fake documents and claim your land,” she said. “There’s no way out, except to fight for your rights.”


Somalia: Of waffle and remittances



YET another in a long line of international conferences on Somalia concluded on September 16th with a "new deal" for the world's most failed state. Aid pledges, both old and new, were repackaged with some admirable language about a "Somali-led" process and unveiled in Brussels. It was the fifth such gathering in two years. The Somali jihadist group, the Shabab, hit uncomfortably close to the truth when its spokesman dismissed the gathering as "Belgian waffle".

On the same day an arguably more important meeting between the British government, Somali money-transfer firms and banks which plan to close the accounts of the remitters was cancelled. Barclays, which dominates the remittance business in Europe, intends to follow the lead of American banks which have closed the accounts of Somali money-transfer businesses, citing concerns over money laundering and their potential to fund terrorist groups in the Horn of Africa. The Somali money-transfer operators, who send cash back to Somalia from the diaspora, need bank accounts in Europe and the United States in order to do business in their host countries. Should Barclays go ahead with the closures it is unlikely another bank would step in.

The London summit had been meant to find a compromise ahead of Barclays' September 30th deadline for closing the remittance agencies’ accounts. For their part, the remitters have offered to undergo rigorous auditing and agree new industry standards for transparency. They argue that the future of Somalia's hawala network—the money-transfer system that developed in place of the country's collapsed banking system—is at stake.

The limp response to the threat to Somalia's remittance lifeline from the governments who are at the same time pledging aid has left many observers confused. "No aid can be as great and effective as this instrument," says Abdi Aynte of the Heritage Institute, a think-tank based in the Somali capital, Mogadishu. "If Barclays pulls the trigger, it will certainly have a deleterious impact on hundreds of thousands of people across Somalia." More than 750,000 Somalis currently reside and work in North America, Europe, Australia, New Zealand and the Gulf states. The money they send home is equivalent to $1.3 billion a year, according to a recent study by Adeso, an African development charity. The new deal promised in Brussels is worth $1.8 billion split over three years.

There is also the issue of where this money goes. While Somali money transfers reach nearly half the population, the bulk of foreign aid goes to the federal government whose remit does not stretch beyond Mogadishu and a handful of other urban centres. Neither the northern breakaway territory of Somaliland nor the semi-autonomous region of Puntland recognises the government of the federal president, Hassan Sheikh Mohamud (pictured on the left with Jose Manuel Barroso, president of the European Commission), which the latter refers to as the "Mogadishu government". Meanwhile the president has been forced to concede control of the southern port city of Kismayo to a former warlord, backed by neighbouring Kenya. Much of the rest of south and central Somalia is under the sway of the Shabab.

Given this fragmented picture many Somalis are more interested in preserving their old lifeline of remittances than in new deals agreed at foreign talking shops.

Source: economist.com

SOMALIA NAMES ABRAR AS ITS FIRST FEMALE CENTRAL BANK GOVERNOR


Yusur Abrar
Somalia named Yussur Abrar as the country’s first female central bank governor, replacing Abdusalam Omer, who resigned after a United Nations monitoring group accused him of mismanaging the government’s money.
Abrar has spent the past 30 years working for international banks and insurance companies, Shador Hajji, a press officer in the presidency in the capital, Mogadishu, said by phone today. She will formally assume the role after a handover, the date of which has yet to be confirmed, he said.
Omer, who held the job for seven months, said he presented his letter of resignation “after the president told me that he was going to reshuffle all the government institutions, so before that I decided to quit,” he said in a phone interview.
Somalia’s government said on Sept. 6 that an investigation into a UN monitoring group report published in July showed its “condemnation of the Somali Central Bank Governor Abdusalam Omer’s stewardship of the bank was entirely unwarranted.”
An allegation by the UN monitors that $12 million had gone missing from a $16.9 million transfer to the central bank was incorrect, and all the money “is fully accounted for,” the government said in a press statement. FTI Consulting Inc. (FCN), based in Florida, and a group of U.S.-based lawyers conducted the investigation, it said.
The Horn of African nation is rebuilding its economy from scratch after taking control of rebel-held territory over the past two years, bringing a measure of stability to the country.
Somalia has been wracked by civil war since the fall of dictator Mohamed Siad Barre in 1991. Government forces and African Union peacekeepers have been battling Al-Qaeda-linked militants in the country for at least the past seven years.
Somalia's Former Central Bank Governor Abdusalam Omer,
 seen here, right, in April with IMF Managing Director Christine 
Lagarde, said he presented his letter of resignation “after the 
president told me that he was going to reshuffle all the 
government institutions, so before that I decided to quit,” 
he said in a phone interview. 
Photographer: Stephen Jaffe/IMF via Getty Images



















To contact the reporter on this story: Mohamed Sheikh Nor in Mogadishu atmsheikhnor@bloomberg.net
To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net



Briefing: Are remittances to Somalia doomed?


Photo: Tobym/Flickr More than a billion dollars are remitted to Somalia every year
AIROBI, 19 September 2013 (IRIN) - Millions of people in Somalia rely on money sent from friends and relatives living abroad to meet the expenses of day-to-day living. These remittance flows are thought to be two or even three times greater than the amount spent on humanitarian aid. 

But recent months have seen a flurry of warnings that remittances flows from the UK will be drastically curtailed because of what some regard as the overzealous application of regulations by one UK bank. 

On 16 September 2013, the Intergovernmental Authority on Development (IGAD), a group of east African states, entered the fray, saying in a communiquĂ©that “an essential lifeline” for “families and communities who are already in poverty” could be cut off as a result.

This briefing analyzes the current anxiety and looks ahead to how a sustainable system of remittances can be put in place. 

How important are remittances to Somalia? 

Extremely. Estimates of their annual value range from US$1 billion to $2 billion. The US is the largest source country, while an estimated $160 million is sent from the UK every year. In some parts of Somalia, 40 percent of the population receives regular remittances, with 80 percent of them spending the money on basic services. 

Few countries in the world are more reliant on remittances than Somalia. More than two decades of civil conflict have left the country’s formal economy and banking sector in ruins. Remittances have replaced this sector, not only boosting the meager incomes of families but also allowing the private sector to do business and, increasingly, providing aid agencies with a more efficient way of responding to drought and famine

The vast majority of the money is sent via money transfer companies, according to recent research, which also indicated that many recipient households depend on a single relative abroad for such assistance. “If the viability of the transfer system were to break down in an area where the single sender of support is located, effectively preventing them from being able to provide support, the effect on many of the households would be severe. Basic food security would be threatened,” said a report by the UN Food and Agriculture Organization (FAO). 

So what’s the problem? 

A growing perception of risk. Because it is impossible to know what remitted money will be used for, or even, given the lack of national identity documents in most of Somalia, exactly who will receive it, authorities fighting terrorism and money laundering are wary of the remittance system. This is especially true in the context of Somalia, where an insurgency with links to al-Qaeda is active, and where effective state regulatory bodies have yet to be set up. 

7.5 million: population of Somalia
600,000: Somalis who live outside Somalia
$1.3 billion: estimated amount remitted annually to Somalia
2-3: factor by which remittances exceed foreign aid
2.3 million: Somalis at risk of not meeting minimum food needs in 2013
$215 million: amount remitted annually from the United States
$160 million: amount remitted annually from the United Kingdom
40 percent: portion of households in Somalia receiving regular remittances
80 percent: of such households who spend remittances on basic social services
The latest manifestation of this perception of risk is a decision by Barclays bank to close the accounts of more than 100 remitters, or money transfer organizations (MTOs), four of which have dealings with Somalia, at the end of September 2013. 

Similar moves have recently been taken by a number of banks in the US. 

Why are the accounts being closed? 

Without pointing any figures at its individual clients, Barclays explained that “some money service businesses don’t have the necessary checks in place to spot criminal activity with the degree of confidence required by the regulatory environment under which Barclays operates.” 

The bank said it had reviewed its clients on a “case-by-case basis.” It added: “We remain happy to serve companies who, in our opinion, have sufficiently strong anti-financial crime controls and who meet our amended eligibility criteria.” 

The UK Financial Conduct Authority, in its annual report on anti-money laundering, published in July, said that the Money Service Business (MSB) as a whole is “at particularly high risk of abuse by those seeking to launder money or finance terrorism, and some MSBs have been seen to be complicit in these activities.” They classified MSB as an indirect risk. 

The Monitoring Group on Somalia and Eritrea, in its report to the UN Security Council on 12 July, pointed to specific cases of remittance services being used to fund terrorist groups. At the end of 2012, “money was collected amongst supporters of Al-Shabab within the Somali business community in Qatar and send via… a [major] money remittance company to Mogadishu.” 
The report also cites three other instances at the end of 2012 where money was transferred from Somali business communities in the diaspora to support terrorism activities, and claims that approximately $100,000 was transferred for these four operations. 

Many players in the Somali remittance sector, including large, regulated firms, use the ‘hawala’ system, where trust within a closed network, rather than legal contracts or paperwork, underpins transactions. It is a system that has facilitated international trade for centuries, but one that worries regulators and entities fighting money laundering and terrorism. (For more on this, seeCapitalizing on Trust, a report published in 2012 by the Center on Counterterrorism Cooperation). 

According Ishmael Ahmed, CEO of online money transfer company WorldRemit, the business model used by MTOs in the UK is “inherently flawed.” 

It is “one that depends on independent agents - often small corner shops in areas with large migrant communities - to acquire customers, conduct customer due diligence and collect cash,” Ahmed wrote in an online op-ed

 “In this business model, money transfer businesses rely on these shop owners - for whom money transfer is a side business - for their core compliance functions, in relationship arrangements that pre-date new stringent anti-money laundering regulations,” he added. 

What has been the reaction to Barclays’ move? 

It has generated widespread calls - from African governments, aid agencies, Somali civil society, a leading think tank and some MTOs - for the bank to reconsider. 

"If remittance channels close, one of the most effective tools available to the international community in responding to future crises will be lost." - Kevin Watkins, ODI
The IGAD communiquĂ©, issued on the margins of a major Somalia conference in Brussels, said Barclays’ decision “will threaten the fragile economic and humanitarian progress made in Somalia, with potentially catastrophic implications for security and prosperity across the Horn of Africa as a whole.” 

In an open letter to British Prime Minister David Cameron in July, scores of Somali civil society organizations warned of “dire consequences” and “immediate and severe humanitarian implications.” 

Kevin Watkins, the head of the Overseas Development Institute, said in a letter to Barclays: “If remittance channels close, one of the most effective tools available to the international community in responding to future crises will be lost.” 

He added: “Desperately poor and vulnerable people will lose a vital source of finance. The international community’s efforts to support recovery and respond to humanitarian emergencies will be compromised.” 
Thirteen international aid agencies have appealed to Barclays to delay the account closures by at least 12 months. 

“These decisions [to close accounts] are commercial but are not made in a moral vacuum,” said Ed Pomfret, acting Somalia director of Oxfam, adding that “preconceived ideas about risk in Somalia are false”. He pointed to recent research about humanitarian cash transfers as evidence of this. 

“Even though it may seem unprofitable, the impact is too great for banks to avoid [the] moral responsibility of continuing to providing these services in the short term,” he added. 

“The imminent closure of the Barclays accounts will severely and significantly restrict the flow of remittances to Somalia,” Abdi Abdullahi, the chairman of the UK-based Somali Money Service Association (SOMSA), told IRIN. 

One of the biggest players in the Somalia remittance business, Dahabshiil, is “happy to do whatever US or UK governments require us to do,” according to CEO Abdirashid Duale. 

Campaigners and industry associations have expressed concerns that if regulated corridors were to close, the money would continue to flow, but via poorly monitored channels, thereby, counter-productively, making it easier to launder money or fund prohibited organizations linked to terrorism 

Do all UK remittances rely on Barclays accounts? 

No. SOMSA says its 16 member organizations constitute “most” of the MTOs in the UK. Four of them have been banking with Barclays, which has asked them to take their business elsewhere. Barclays says at least one of these four has found another bank. SOMSA says none has. (Campaigners worry that other banks might follow Barclays lead, creating a “domino effect.”) 

"Barclays isn’t the last bank in this space, and there are multiple other UK remitters who claim to send money to Somalia currently banking with other banks" - Barclays statement
“Clearly Barclays isn’t the last bank in this space, and there are multiple other UK remitters who claim to send money to Somalia currently banking with other banks,” Barclays told IRIN in an email. 

Of the 12 SOMSA members who do not bank with Barclays, some, according to Abdullahi, are small enough - small payment institutions(SPI) handling less than three million euros a month - to operate under a different regulatory system, one that does not require lodging clients’ money in the SPIs’ own bank account. 

According to Capitalizing on Trust, many remitting organizations take the form of “charity and family networks”, where a single community leader serves as an informal agent. Such networks have “little exposure to formal institutions and regulatory oversight.” However, such monies tend to be bundled and passed on through MTOs in the source countries. 

World Bank data shows that global remittances to developing countries have enjoyed robust annual growth over recent years - a time when banks were closing remitters’ accounts in the US - and are expected to grow by an average of 8.8 percent between 2013 and 2015. 

This growth is attributable in part to the changing nature of the remittance sector and the entry into the market of new kinds of players, such as mobile money transfer services. 
Photo: Mohamed Amin Jibril/IRIN Millions of Somalis use remittances to buy basic necessities
What should happen next? 

Dahabshiil’s Abdirashid Duale argues that it is in the interest of regulators to intervene and find a solution to transfer money. If remittances go down, it is likely that the UK will have to put in more aid to Somalia. And humanitarian agencies, which use money transfer companies to get funds to Somalia, do not have many other options to transfer funds. 

The UK government is looking into ways to allow money to flow legally and safely. In the medium-to-longer term, the UK’s Serious Organised Crime Agency is leading cross-government efforts to develop ‘safer corridors’ for remittances to high risk jurisdictions, bringing together regulators, law enforcement bodies, academics and industry. 

According to Laura Hammond, the lead researcher in the FAO report and head of Development Studies at the School of Oriental and African Studies in London, “There is increasingly talk about trying to increase compliance and transparency at the receiving end, involving Somali government structures but also having an independent body verify compliance.” 

Producing biometric identity documents across Somalia, which would only cost a few million dollars, would also help to satisfy concerns about remittances not reaching their designated recipients. 

Industry analysts expect the use of cashless systems such as mobile or online transfers, to increase. They are already in wide use in Somaliland, where operator Telesom boasts more than 275,000 monthly users of its mobile money services. 

“The online money transfer model addresses the perennial problems associated with the agent model,” wrote WorldRemit’s Ahmed, whose company provides this kind of transfer. 

“As there is no longer an intermediary between the [MTO] and the customer, the [MTO] becomes responsible for customer due diligence. Most importantly, this model eliminates the anonymity and lack of audit trail associated with cash transfers.” 

Digital currency schemes, such as Bitcoin, and e-payment cards could also be used as a means to transfer money without requiring formal banking infrastructure. But it would require a regulatory environment that both promotes the initiative and is able to monitor for criminal activities resulting from the transactions. 

Large international firms such as Western Union and MoneyGram may come into the country to fill the void - although they cost almost twice as much as the current money transfer services. Currently, there is only one Western Union branch in Somalia, located in Hargeisa. 

Source: IRIN

Somalia, Italy Sign Military Training Agreement

Somali Minister of Defence Abdihakim Haji Mohamud Fiqi and his Italian counterpart Mario Mauro signed an agreement Wednesday (September 18th) under which Italy will assist in training and equipping Somali armed forces, Somalia's RBC Radio reported.
Fiqi and Mauro signed the agreement during Somali President Hassan Sheikh Mohamud's two-day visit to Rome. The defence partnership is the first bilateral agreement between Italy and Somalia since the collapse of the central government in 1991.
Italian Prime Minister Enrico Letta promised his government's support for Somalia, suggesting to host a mini-summit for Somalia during the United Nations General Assembly this year in New York.