In less than two years, Berbera Port Authorities have purchased a second tugboat for the bustling Berbera port.
In a statement on his facebook page the Port Manager Mr. Saeed Hassan Abdillahi announced the purchase of the tugboat and added that the purchase was facilitated by P&O Maritime.
The Port Managers statement stated that the purchase of the tugboat is fully funded by the government of Somaliland.
Capacity of Berbera Port has increased significantly and is expected to handle more traffic once the ongoing expansion by DP World currently underway is concluded.
No details of the new tugboat was provided and attempts to reach the Port Manager were unsuccessful.
A Delegation of Somaliland Government officials led by the the Vice President HE Abdirahman Abdallahi Ismail Saylici signed a €7.5 Million with the European Union Representatives in Berbera.
@NBerlangaEU together with HE @VPsomaliland today inaugurated the Berbera Urban Development Project, at the coastal city of Berbera. The project will support inclusive local governance, urban waste management, and livelihood and entrepreneurship for the locals.@UNHabitat_Sompic.twitter.com/WA3MIpdbkr
Berbera Urban Development Project is funded from the European Development Fund (EDF) under the Regional Indicative Programme (RIP) 2014-2020 for Eastern Africa, Southern Africa and the Indian Ocean.
According to a statement released by the EU, the project support inclusive and sustainable development of the coastal city through strengthening the capacity of the municipality in urban planning, improving the waste management system as well as stimulating employment and entrepreneurship for urban communities.
Among other investment in infrastructure, the project includes the construction of a network of 20kms of feeder roads that will also connect to a new dumpsite, as well as internal roads within prioritized community areas in Berbera.
Berbera Municipality and its Mayor Mr. Abdishakur Mohamoud Iddin has been widely praised for their work on the roads and local infrastructure. Berbera is also home to Somaliland’s major port currently managed and upgraded by DP World.
According to government records examined by Somaliland Chronicle, Somaliland government officials spent more than $765,000.00 on travel-related expenses on 2019.
There is no sufficient information to determine if the travel activity is business-related, but many of the records we examined show officials frequent travel to countries where their families live. Many officials have embarked on a European tour, sometimes traveling to London, Sweden, and Germany for no specific reason while using taxpayer funds.
Deputy Minister of Fisheries and Livestock Development Ms Yurub Abib Abdi (Right) with former Somaliland UK Representative
Late last year, the Deputy Minister of Fisheries and Livestock Development Ms. Yurub Abib Abdi spent 35 days in the UK for unspecified official business although she has attended many welcome parties, she has not disclosed the nature or outcome of her long visit. Ms. Abdi’s per diem alone exceeded $10,000 US Dollars.
The Ministry of Foreign Affairs and International Cooperation has outspent every government agency, including the Presidency coming in at a whopping 26% of the $765,000 with the Minister and few department heads doing most of the traveling.
Expenses include flight and a standard $300 daily per diem allowance.
The Head of the Protocol of the Ministry of Foreign Affairs and International Cooperation Mr. Abdirisak Mohamed Saeed (Gees) has traveled to Turkey frequently with unspecified official business as the justification.
Sources from the Ministry of Foreign Affairs and International Cooperation point to a strong connection between Mr. Abdirisak Mohamed Saeed (Gees) and the Turkish Consulate in Hargeisa with one official describing him as the Gatekeeper of Turkish Visas.
It is unclear how current and former government officials can afford a lavish lifestyle in Turkey, many including Mr. Abdirisak Mohamed Saeed (Gees) have been confirmed to own properties and have moved their families from Somaliland to Turkey.
Records show that the former Director-General of the Ministry of Foreign Affairs and International Cooperation has approved questionable travel expenses totaling $11,588 for various employees for unspecified counter-piracy activity in London. Records include letters issued by the Counter-Piracy Coordination office’s Executive Director authorizing for himself and others.
One official from the Ministry of Foreign Affairs and International Cooperation who spoke on background stated that very few staffers always go on official trips and that knowledge transfer of any kind is ever conducted by these frequent flier staffers.
While many of the records we have examined seem legitimate and the Ministry of Foreign Affairs and International Cooperation is the biggest spender in this category, there are questionable travel expenses across all Somaliland ministries and agencies that seem entirely unnecessary or are conducted for personal reasons.
Hargeisa Group Hospital (HGH) is the National hospital in the Republic of Somaliland and also the teaching hospital for medical universities in Hargeisa. It is the largest hospital in Hargeisa where many patients visit to seek medical attention.
The hospital’s capacity to deliver medical services is critically low due to the limited number of qualified medical practitioners and the lack of life-saving equipment.
Following the trend in other countries, there has been a veritable explosion of medical negligence cases in the past months in Somaliland and the main referral hospital in Hargeisa. Yesterday and in the past two months, three patients have lost their lives due to lack of oxygen and medical negligence.
The whopping number of claim cases filed against Hargeisa Group Hospital is a major headache for the authorities now. Reports suggest that these allegations have increased by leaps and bounds over the past few months.
Today some of the top directors from Hargeisa Hospital have expressed their concerns about the falling standards of group hospital health care. A prominent weakness of the Hargeisa Group Hospital health care system is the absence any regulatory body on medical mistakes and equipment importation and utilization. While disappointing outcomes of treatable diseases are mainly attributing to the poor quality of imported drugs and unqualified medical practitioners.
When a person visits the doctor’s office or the emergency room of a hospital, they are entitled to receive a certain standard of medical care. Unfortunately, the standard of this “medical care” varies greatly and especially between the public and privately owned hospital. In the most extreme incidences, the very hands that are supposing to be helping a patient can ultimately become the cause of their death.
The Ministry of Health has never developed a core health care services package nor assesses the resources and infrastructure needed to deliver them. The Ministry’s main issue is a cumbersome management structure that does not have any oversight on hospitals.
Finally, what is urgently needed is a top-down review of the conditions at public and private hospitals, a comprehensive medical framework that guides medical practitioners in minimizing malpractice and helps our legal system process legitimate claims when patients are hurt.
About the Author Mohamed Shueb Ahmed is a healthcare activist and a former member of Hargeisa Group Hospital staff. Mr. Ahmed is the Advocacy and Media manager for Somali Women in Global Health
Disclaimer: The viewpoints expressed by the authors do not necessarily reflect the opinions, viewpoints of Somaliland Chronicle and it’s staff.
The President of the Republic of Somaliland HE Muse Bihi Abdi has reshuffled his administration today for the fifth time since taking office two years ago.
President Bihi reshuffled 9 positions at multiple agencies including the Ministry of Environment and Rural Development, Ministry of Commerce, Industry and Tourism, Ministry of Foreign Affairs and International Cooperation, Ministry of Energy and Minerals, Ministry of Water Development, Quality Control Agency, National Tender Board, Aviation and Airports and the Good Governance and Anti-Corruption Commission.
Although the Presidency does not state a reason for such sweeping changes, 8 our of 9 appointees are Director Generals from various ministries. Director General’s are the day to day manager’s of an agency’s operation.
The latest changes did not affect the Ministry of Health Development or Hargeisa Group Hospital which has been in the news the last two days due to a scandal involving the death of a child for lack of oxygen.
Request for information on President Bihi’s latest changes to his administration and what prompted it and if it were not answered by the President’s office.
Somaliland Government executed six male death row inmates today in the early morning hours by firing squad. A brief statement from the Attorney General’s office confirmed names of the executes inmates and gave brief information of their next of kin and their victims.
Somaliland under its law and Islamic Sharia has the death penalty for murder, and although rarely carried out, due process issues has been raised in the past by Human Rights groups.
An out of court monetary settlement known as “mag” paid by perpetrator clan to the victim’s is a common in Somaliland.
According to sources, Somaliland has the beginnings of a crime scene expertise currently funded by the UK government but relies on eyewitness testimony and confession for murder convictions.
On twitter EU Ambassador to Somalia Mr. Nicolas Berlanga expressed the EU’s opposition to death penalty in all circumstances.
Security, elections, debt relief, rule of law, development… we all know the number of challenges to overcome. The EU holds a strong and principled position against the death penalty in all circumstances and for all cases https://t.co/nsMLtAfPXP
Somaliland Vice President HE Abdirahman Abdallahi Ismail Saylici has officially launched a new service called E-Shilling that will be used to electronically direct deposit public servent’s employees in accounts in Somaliland Central Bank.
The new service is a joint operation by Somaliland Central Bank and Civil Service Commission and is being launched as a pilot on select government agencies including the Ministry of Finance and others.
According to the information shared by government officials who attended the unveiling ceremony, the new cashless service will solve logistical issues associated with distribution of large quantities of cash for public servants and will have the added benefit of reducing corruption, although, how the system will achieve the last point was not elaborated by the officials.
The service will enable public servants to receive their salaries on time and will have the ability to transfer to existing electronic currency platforms such as Dahabshiil’s e-Dahab and Telesom’s ZAAD.
The two largest telecom companies of SOMTEL and TELESOM are partners in the program.
Once fully functional, the program is expected to bring in a large customer base for Somaliland Central Bank and according to the Minister of Finance Mr. Saad Ali Shire, should help employees save a portion of their salaries.
In the latest sage of the parliamentary and local council election delays in Somaliland between the ruling party of Kulmiye and the opposition parties of WADDANI and UCID, there is a fresh dispute surrounding the dissolution of the new Election Commission.
A joint press briefing held by the opposition parties after a close door meeting, the Chairman of Waddani Mr. Abdirahman Mohamed Abdullahi Cirro stated that the President Bihi has informed them that he was unable to disband the new Election Commission despite the previous agreement on the recommendation of the mediation committee.
“We have met with the President for the third time and we expected a progress report on where things stand, and the bottom line is that the President is unable to execute the disbandment of the current Election Commission” said Mr. Cirro
Mr. Cirro called on the new Commission to resign to get elections underway as soon as possible for the sake of the country. He has also called on the mediation committee, the International Community and the public to play their role.
Finally Mr. Cirro stated that the two opposition parties will hold regular meeting to decide their next steps.
Shortly after, the opposition parties press briefing, the Deputy Chairman of the ruling party of Kulmiye Mr. Ahmed Abdi Dhere also speak to the media to explain his party’s position on the latest dispute.
Mr. Abdi Dhere stated that his party has accepted the recommendation of the mediation committee specifically to disband the new commission according to the law and added “the two Chairmen and the President met and there is simply no legal framework that allows the dissolution of the Commission”.
Kulmiye Deputy Chairman also explained the context and rejected the oppoisitions assertion that the President has refused to disband the Commission.
On June 11, 2019, a high-level delegation of Somaliland Ministers consisting of The Minister of Environment and Rural Development, Ms. Shukri Haji Bandari, the Minister of Minerals and Energy Mr. Jama Egal and the Minister of Livestock and Fisheries development Mr. Hassan Mohamed Ali Gafadhi visited Sweden and met with members of the Swedish Parliament, community and business interests looking to invest in Somaliland.
The delegation’s visit got off to a rocky start when members of Somaliland’s community in Sweden accused the Somaliland Representative Mr. Zakaria Waes of facilitating a meeting with the ministers with members of Sweden’s far-right Sverigedemokraternaparty and Mr. Mikael Thorstensson.
Although the sequence of events surrounding the conservation project is unclear, there were two major events, a signing ceremony in Hargeisa and the project unveiling in Stockholm.
At a document signing ceremony in Hargeisa, Ministers Shukri and Gaafaadhi, Representative Waes and Skinnar provided some detail of what the project entails.
Mr. Gafadhi, who at the time was the Minister of Livestock and Fisheries Development spoke at this event stated that the conservation project will cover an area of at least 35% of Somaliland’s coast with a total ban on commercial foreign fishing.
The Minister of Environment Ms. Shukri who also spoke at the signing ceremony reiterated the importance of Somaliland’s marine resources but added that Somaliland’s all three Islands including the largest Sa’ada Diin will be part of this conservation project or agreement.
Although some news reports have mentioned Swedish government involvement, we could not find any links between this project and the Swedish government.
Now, let’s look at the cast of characters involved in what could be the largest and perhaps least known agreement the Somaliland Government has entered since DP World Berbera port agreement.
Somaliland’s Representative Mr. Waes
According to Somaliland Representative in Sweden Mr. Zakaria Waes, who we have spoken to at length for this story, the conservation project is part of Somaliland’s commitment to the sustainable development goals in the marine conservation sector and the fact that the Swedish National TV had an entire segment dedicated to Somaliland and the project could improve Somaliland’s image.
Mr. Waes stated that this could be the project that gets Somaliland noticed on the world stage and put it on the map. He added that the people working on this project, presumably Skinnar and Waller will walk our recognition papers into the tall building in New York, a reference to the UN headquarters in New York.
Asked if the project had the full support of the government of Somaliland, Mr. Weis repeated a statement he made on the SVT2 segment that the President of Somaliland, HE Muse Bihi Abdi himself had signed off on it.
A good and produktive meeting with the Swedish investors for the Somaliland marina national park pic.twitter.com/Un53WIxzP5
— Zakaria Waes.Head of somaliland Misson in Sweden (@WaesZakaria) October 14, 2019
Despite his unbridled enthusiasm, however, Mr. Waes seemed to have a tenuous grasp on the basic mechanics of the project and even though he mentioned investors a couple of times during our conversation with him, he did not provide details on how the investors will get their return on investment.
The Swedish Investors: Skinnar and Waller
Let’s start with Mr. Marcus Skinnar, an atypical fast-talking Swede with deep links to China and the owner Edurus, a company that supplies tombstones to the Swedish market.
This is not Mr. Skinnar’s first trip to Somaliland or first fishing related endeavor, in fact, he has visited Somaliland frequently as a member of Anglo Somaliland Resources. A British shell company that somehow convinced the government of former President Ahmed Mohamed Mohamoud to make it the sole agent to distribute fishing licenses on behalf of Somaliland.
It is unclear what happened to the existing agreement with Anglo Somaliland Resources and how it will be affected by the Marine Conservation Project. Both entities share a common denominator in Mr. Marcus Skinnar.
Mr. Marcus Skinnar in Hargeisa with Anglo Somaliland Resources associates Sir Tony Baldry and Ian Fenwick
Mr. Skinnar who was in Maansoor Hotel in Hargeisa who spoke to us after a referral from Mr. Weis for more details on the project showed little interest in answering critical questions about this vast project and instead told us about his attempt to locate an undiscovered ancient pyramid in Somaliland. Mr. Skinnar, according to him, sees himself as an Indiana Jones of a sort.
Repeated attempt to get Mr. Skinnar to explain the project led to a lengthy explanation of how expensive electricity is stunting Somaliland’s economic growth and his plans to introduce underwater turbines that convert tidal currents from the conservation areas to produce cheap renewable energy.
Mr. Skinnar also took the time to explain how lucrative Somaliland’s untapped tourism sector, especially given its proximity to China and its vast and increasingly wealthy population.
Despite Mr. Skinnar’s hyperbole and repeatedly describing himself as a wealthy philanthropist, his company Edurus AB generated around 3 million US dollars in 2018 before taxes and expenses. This puts Edurus in the small business category.
Connection to Anglo Somaliland Resources
On the event held to unveil the conservation project, Mr. Skinnar seemed to distance himself from Anglo Somaliland Resources and stated that it was a conversation with Mr. Waller that convinced him to end his relationship with them because of their connection with the Chinese fishing industry and its record of decimating fishing habitats in other countries.
Mr. Skinnar also shared a different business that he is currently pursuing in Somaliland related to mineral exploration and the potential for quarrying expensive marble and granite, he added that Mr. Mohamed Mohamed Abdirahman who is a trained geologist is his partner in that business.
Although neither Mr. Skinnar or Somaliland’s Representative in Sweden Mr. Waes revealed any useful information about how much the project they were unanimous in pointing out that Mr. Waller is the business brain behind the project and that he is working on assembling investors for the project.
Which brings us to the money man – Mr. Johan Waller.
Mr. Waller is the founder of a successful management consulting firm known as Business Wellness Group founded in 2002 that generated around 60 million dollars in sales in 2018, beyond that, we do not know much about him or his relationship with the conservation project and the fact that he is the businessperson who will get the funding together.
Unlike his business partner Mr. Skinnar, Mr. Waller is a man of few words who politely declined to speak on the record and provide any information about the project.
Tourism Project Disguised as Conservation?
There are too many unknown variables with this project, starting with the astronomical cost required by such an effort and the fact that private investors do not see a conservation effort as a viable investment opportunity.
Mr. Waller, who makes a living showing other companies how and where to cut costs and how to maximize their profits will have a difficult time convincing investors to pour massive sums of money in a non-profit marine conservation effort.
Although tourism was not mentioned by either of the Ministers and only alluded to by Mr. Skinnar, it may be the most plausible reason that an investor will be interested in an island especially Sa’ada Diin.
It is also entirely possible that this project is a permutation of Anglo Somaliland Resources with conservation and a Swedish veneer.
Mr. Skinnar, second from right with President Bihi and Anglo Somaliland Resources associates Sir Tony Baldry and Ian Fenwick
Somaliland government has a history of signing agreements with shady entities with minimal due diligence. It is unclear how much effort went into vetting Mr. Skinnar and examining his relationship with Anglo Somaliland Resources.
It is also unclear if the Somaliland government completed any feasibility studies to understand the true cost of enforcing conservation on 35% of Somaliland’s coast or if tourism is a component of the agreement, how it will affect the fragile ecosystem of Sa’ada Diin and other islands.
Asked if President Bihi is aware of this project and is aware of the details, officials from the President’s office were unaware of a meeting with Mr. Skinnar or if the President have been briefed privately by the Ministers.
Ministers Gafadhi and Shukri did not respond to request to comment on the project and attempts to reach the new Ministry of Livestock and Fisheries Development Mr. Saeed Sulub Mohamed Hussein were unsuccessful.
As usual, before I look at the budget in detail, I must say a word or two about the definition of budget. Budget is a financial plan that articulates the objectives and goals of a government for a certain period usually a year. In other words, it is the annual economic strategy but there are occasions when planning, instead of helpful, becomes harmful. Budgeting is a difficult and daunting process of estimating both revenue and expenses during a specific period. A national budget is the financial plan of a country. The government gets money from fees, taxes and fines, and spends on its national interests like national defense, Security, infrastructure, grants for research, Education, Social agendas such as Social security and Medicare.
Somaliland Budget 2020 is 331.5 million dollars. The Central Government Budget is 246.5 million while the parastatal agencies (like Hargeisa water agency, National printing agency, Central Bank and Berbera Fuel depot) has 29.16 million; Local governments had a budget of 39.36 million while World Bank projects, Somaliland Development Fund and JPLG projects are 5.5 Million, 9 million and 2 million respectively.
On 19 November 2019, Somaliland Minister of Finance presented 2020 National budget to the House of Representatives. Therefore, in this article by using budget data from the 2020 Financial Year, I will make a number of analyses regarding the budget source of revenues, allocations, mismatches, and budget priorities. This will allow us to understand how the 2020 Government Budget allocations differ from the National Development Plan II and realities on the ground.
The best practice for budget measuring contains no more than the following 8 steps: Pre-budget Statement, Executive Budget Proposal, Enacted Budget, Citizens Budget, in year report, mid-year review, year-end reports as well as Auditors Report. However, to the dismay of many citizens hardly three of the above-mentioned items exist; even though those are shrouded with secrecy while public participation is close to nil and with little details and unfortunately at least four of these eight steps does not exist, at all.
The 2020 budget and its format are markedly different from last year’s not as format but substance as well. Under the leadership of the acclaimed economist, finance minister has taken baby steps of reform. The ministry produced Macroeconomic and fiscal framework, Medium-term Budget framework and budget outlook paper. It has increased the Tax identification numbers from a few hundred to over 6000. The number of regulatory frameworks has been introduced, to some extent the Information management system has been implemented, staff training, and development has been prioritized which further facilitated streamlining data and production of quarterly economic performance bulleting was the icing on the cake.
This budget is 17.6% higher than the current 2019 budget, with the forecasted 8.3% growth for a coming couple of years; 2023 will be historic year for Somaliland, domestic revenue will surpass 400 million dollars coupled with the completion of Berbera port expansion and Ethiopia’s anticipated 30% of its import handling to be channeled through Berbera port will have a multiplying effect on the revenue. Donor funded projects are insignificant 6.7% unlike Somalia with the direct budgetary support and donor project funded are approximately 50% its budget.
This budget shows clear gaps of not only tax collection at large but also the large discrepancy of income lines, the dividend of Berbera Port and 10% of income tax is not included for the third consecutive year in a row. The overall income for the central government contains $246.5 Million: Customs account the largest amount 77.6% while Inland Revenue contributes only 16.6% and the rest contain 7%. This year customs revenue is an increase while inland revenue and other sources are in a decrease in percentagewise and it is the manifestation of current strategies for inland revenue collection increase is inadequate. Telecommunication and Financial sectors seem to the least under-taxed and have limited contribution of overall income despite handling at least Billion dollar.
There has been a prodigious improvement for revenue collection of both inland revenue and customs department. To add to that, 2019 might end up the first year forecast that revenue has been achieved for the last 5 years.
Of the 31.7 million dollars extra revenue, all most, all ministries and agencies benefited; operational cost has been increased 5% flat for all; but 19% went to security, 27% went to economic sector, 23.45 went to Social affairs, 18.82 went to administration, 2.97% to production, 2.7% infrastructure, .7% environment and Others 4.2
Despite having a 340-million-dollar budget, only 23 million has been allocated the paramount portfolio of Education Ministry which is only no more than 7% of the overall budget. Currently, we are lowest school enrolment in the region approximately 30% of aged children go to school[1]while Kenya whose school enrolment reached 76.2% in 2017 coupled with 84% completion rate of primary schools with further 88% transition rate from Primary to secondary heavily invests Education in 4.7 Billion dollars but our significant amount is hindering not only the current development endeavors but as well future generations.
The health sector is not any better shape under the current budget, 10.24 million dollars has been allocated a country with the highest child and infant mortality and coupled with the high mortality death approximately 850[2] per 100,000 it too insignificant such a small amount. Education and Health in total have been allocated 34 Million dollars which is a fraction of 8.29 dollars per person.
Infrastructure has not been adequately rewarded but maybe the intention can be: as there are large donor-funded infrastructural developmental project including the Berbera Corridor and planned Borama-Djibouti Road and Port Expansion under the DP world and with forthcoming proper maintenance of both Bridges and road between Berbera-Buroa under Somaliland Development Fund but make no mistake, the infrastructure can’t take a back seat under our current realities.
One of the notable differences for 2019-2020 budget is: security sector budget has decreased 2% while the Economic, Social and Energy sectors increased 1.5%, 1.2%
The top ten prioritized institutions have a combined budget of 85 percent while the least prioritized institutions had a combined budget of 1.6%. comparing to the 2019 budget the ten topmost prioritized institutions increased their share from 69% to a new Hight of 85% while the 10 least prioritized institutions combined share diminished from 1.84% to 1.6% and .1% respectively.
The presidency including Office of the President, Vice president and it’s Security Guards has more budget than 11 Supreme ministries including Water, Livestock and Fishery, Agriculture, environment and wildlife, Energy and minerals, Employment and Social , Planning and National Development, Public works and Housing, Investment and Parliamentary coordination & constitution; astonishing to see while more than one-third of GDP is derived from Livestock, fishery and agriculture but still our core Ministries are underfunded a country with upside-down priorities!
Anything admired-yes, the increase of budgetary allocation for both Environment and foreign Ministries is a welcome to note; continuation Buroa-Erigavo Road, enclosure of two rangeland of Sanaag region in order to increase fodder production and increase of land regeneration, the inclusion of pet project across the country is at least helping citizen in various ways. Construction for more MCHs and Health centers, construction of Harvey Dams and budgetary increase for Hospitals are important incremental steps. But make no mistake, as internationally unrecognized de facto state, we need to invest more in Education and infrastructure this will be a leap into the future and there is genuine demand to fund large labor-intensive projects with far-reaching implications and will have multiplying effect for the entire economy.
Finally, Somaliland Budget is one of the most crucial or important documents that the Government produces annually. It takes the preparation of months yet hardly it attracts any attention either from Academia, Civil Society, Opposition Parties and Media and rubber-stamp House of Representatives hardly debated. Hard it been debated intensely, winners could have been not only Citizens but Government, Opposition, Academics, and the entire Country could have been the winner but was another avenue we failed to endeavor.
[2] Somaliland Women of Reproductive Age Mortality Survey 2014 jointly prepared by WHO and University of Aberdeen.
About the Author Yassin Abdillahi Ahmed Studied Baccalaureate in Business Administration and Maser’s in international cooperation and Humanitarian Aid KALU INSTITUITE and currently studying Master of Business Administration at Heriot -WATT University Mr. Ahmed can be reached Yassin_abdillahi[at]hotmail.com
Disclaimer: The viewpoints expressed by the authors do not necessarily reflect the opinions, viewpoints of Somaliland Chronicle and it’s staff.
