Mogadishu (Commentary) — Why did President Abdullahi Yusuf Ahmed avoid to recover Somali assets frozen in foreign banks whereas President Sharif Sheikh Ahmed and his successor President Hassan Sheikh Mohamud took steps to recover those assets? President Abdullahi Yusuf Ahmed knew that frozen assets should not be recovered until Somalia has fully put in place an accountable legislature through which a Somali government would be able to identify the sources of frozen assets to ensure that they do not end up in the pockets of unscrupulous politicians or lawyers.
In 2015 the Central Bank of Somalia published a policy statement to the effect hat “the Federal Government of Somalia (FGS) requested the Financial Governance Committee (FGC) to monitor and oversee the recovery of Somalia’s frozen assets.” The former military regime of Somalia deposited money in several foreign banks. Some of the money deposited in the banks belong to livestock exporters, exporters of fruits, hides and frankincense; some of the money are investments committed to Somalia-based projects through a bilateral agreement.
Between 2013 and 2017 the first post-transition government of President Hassan Sheikh Mohamud appointed an American law firm to track and recover Somalia assets in American banks. This agreement contravened the spirit to end the transition under the principles of London 2012 Somalia Conference in which a management board to oversee Somalia finances under a new dispensation was agreed by all participants. President Hassan used the non-transitional status of the government to renege on principles agreed in London. The United Nations was right to draw attention to the illegality to recover Somalia assets. The indictment of Jeremy Schulman, one of the lawyers assigned to recover Somalia assets, had vindicated the position of the UN Monitoring Group.
“The FGS’ official response to the Monitoring Group’s report on asset recovery on July 15, 2014 states that ‘The FGC, cooperating with the UNODC/World Bank Stolen Assets Recovery (StAR) Initiative, will henceforth oversee and monitor the national asset recovery program, and will issue periodic reports to Presidency, Council of Ministers, Somali Parliament and Somalia Development and Reconstruction Facility Steering Committee on its activities and findings.’”, the Central Bank policy statement reads.
Italy is one of the countries with which pre-1991 Somalia government maintained commercial ties. The post-1985 economic liberalisation policy boosted exports of fruits and hides from Somalia. The Italian government could play a key role in identifying the source of frozen Somalia assets and money, some of which were used to service sovereign debts, some of the money belongs to exporters, who should have received their money after export tax had been levied. Many Somalis ask how, among other assets, money from Somalia fishing vessels (1991-2000) stationed in Yemen was administered. The sovereign status of Somalia should never be used to defraud Somalis of their national and personal assets.
D. A. Farah is a senior Somali economist who worked for the Somali Finance Ministry 1981-1991.
© Puntland Post, 2022
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