Investigative Reports

The Diplomacy of Gullibility: How Somaliland’s Foreign Ministry Keeps Falling for International Fraudsters

In what has become a familiar scene in Somaliland's...

Ex-US Ambassador to Somalia Lobbies for Hormuud’s Access to American Banking System

Questions mount as André partners with Somali MP who...

Major Corruption Allegations Rock Somaliland Finance Ministry’s Recruitment for World Bank’s Public Resource Management Project

According to documents examined by Somaliland Chronicle, serious allegations...
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False Advertising – SOMCABLE Chairman Lies About his Philanthropic Activities in Somaliland

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On October 29, 2019 Mr. Mohamed Said Guedi, one of the wealthiest businessmen in Somaliland, the owner of somcable, MSG and other businesses was featured on Allafrica.com with an article titled Mohamed Said Guedi: Improving East Africa.

Mr. Mohamed Said Guedi

Mr. Mohamed Said Guedi may be working on Improving East Africa and possibly Somaliland but this article is not real. He has paid money to have it published and promoted in what is known as native advertising or in the case of Allafrica.com “Content from our Premium Partner”. 

AllAfrica.com’s advertising service catalogue

As strange as this sounds, it is very common for a business to have its own content published on even the most premier news outlets such Washington Post and NY Times as what is known as native advertising. And it costs a lot of money.

With digital juggernauts such as Facebook and google who have changed the advertising business, native advertising is a relatively new direction that media outlets are using to counter the loss of revenue to the tech giants. 

Native advertising differs from traditional advertising where businesses purchased a space on a publication or a website to showcase their products and services to attract customers, instead native advertising takes a much more subtle approach and wraps the company’s brand, products, and services with compelling storytelling that creates a connection with the consumer rather than trying to sell them products with an impersonal advert.

Stealth Philanthropist

So what makes Mr. Mohamed Said Guedi, or Ina Aw Saeed, as he is colloquially known in Somaliland and Djibouti’s advertisement disguised as a news problematic? Because Mr. Guedi is known to be a mercurial businessman who have used his connections to Djibouti’s first family and various Somaliland governments to bully and imprison business associates and employees at an alarming rate.

The section about his philanthropic activities in Somaliland is highly exaggerated at best. Mr. Guedi claims to have “funded various road projects such as Dawga Camuud and Dawga Caad, maintenance of Hargeisa Airport road, maintenance of Hargeisa local government roads, rehabilitation of Doobo mountain road, and reconstruction of roads in the district of Dar es-salam outside Hargeisa, Somaliland.”

There are few issues with some of these claims, and especially the roads he has maintained in Hargeisa district of Dar es-salam outside Hargeisa.

Hargeisa roads during the rainy season

However, we found that Mr. Guedi has contributed to road project of Dawga Caad where his construction equipment was used. This is the road that was used when the terrestrial fiber cable was being laid down for somcable.

We have asked Mr. Guedi’s MSG details on their philanthropic activities detailed in the article, no response was provided to our queries.

We have briefly chatted with Mr. Guedi via text and though initially befuddled about our interest in the article and these activities; he stated that he did not know the figures and the specific projects but confirmed that his staff has provided the details to AllAfrica.com and promised to get back to us with details though that has not materialized.

Proper Oligarch

While Mr. Guedi may have embellished his charitable giving, he is well known to spend lavishly on politics. According to close business associates, Mr. Guedi has been known to boast about how much he has spent on the election of the current President of Somaliland HE Muse Bihi Abdi.

It is important to note that Somaliland has no campaign finance laws that prohibit or limit the size of donor contribution and Mr. Guedi’s alleged ties to President Bihi’s government are not proven, although Mr. Guedi has won no-contest bids for major projects such as Cement factory and container cargo x-ray system at Berbera Port.

Multiple people with past dealings with Guedi who spoke about their experiences were unanimous in characterizing him as litigious and unpredictable and many stated that they have either ended up bankrupt via a court injunction or served unjust prison sentences. 

The Chairman of somcable, Mr. Guedi (2nd from left)

While Mr. Guedi has failed in his attempt to give himself an image makeover as a benevolent and shrewd businessman who has given back to his people and country, the reality is Mr. Guedi has taken from Somaliland and its people much more even if all of his purported charitable contributions were true. Mr. Guedi is the very definition of an unapologetic oligarch who takes what he wants when he wants it. 

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Notice: This is an article by Somaliland Chronicle. It is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. Under this license, all reprints and non-commercial distribution of this work is permitted.

President Bihi Replaces Heads of Multiple Foreign Missions

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For the second time since taking office, President of the Republic of Somaliland has reshuffled the heads of diplomatic missions in the United Kingdom, The Kingdom of Saudi Arabia, Norway, Yemen, the EU, Ethiopia, South Africa and Germany.

This follow yesterday’s appointment of a new Commander and Deputy Commander of Somaliland Police forces to replace the late Major General Abdillahi Fadal Iman who passed away on November 1st in Hargeisa.

The decree from the Presidency did not mention a reason for the reshuffle and efforts to reach former Representatives were unsuccessful.

Victim or a Traitor? A look at Villa Somalia’s latest Recruit from Somaliland

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Almost a year ago, we reported that Mr. Sharmarke Jama, a well known Somalilander and a technical consultant who has worked closely with multiple Somaliland government agencies, was arrested in Hargeisa.

Mr. Jama with Somaliland Ministers of Investment and Commerce
Mr. Jama at DP World groundbreaking ceremony in Berbera, Somaliland.

Prior to his brief incarceration, Mr. Jama has been a passionate supporter of Somaliland on social media and have always taken the time to call out Villa Somalia but this week he has updated his twitter profile with his new employment with Villa Somalia as Economic & Trade Adviser to Mr. Hassan Ali Khayre, the Somali Prime Minister.

All indications are that Mr. Jama has enthusiastically believed in Somaliland as he told the Irish Times “As our economic interests align with the region and we become more economically integrated, that can only help with recognition,”

So is Mr. Jama a victim of Somaliland’s indifference to talent, injustice and arbitrary arrest that has become a commonplace in Somaliland?

Mr. Jama’s debut tweet as a Villa Somalia employee

Although an adviser to the Prime Minister is low on the totem pole, Mr. Jama is hardly the first Somalilander to go to work for Villa Somalia.

For many in both countries of Somaliland and Somalia, a government post such as the Deputy Prime Minister in Somalia or a ministerial post in Somaliland is akin to winning the lottery, regardless of one’s view perhaps it is the opportunity of a lifetime.

An example is Mr. Bashe Yusuf Ahmed, Somalia’s Chief Justice who was also recruited from Somaliland as an untested lawyer who has never practiced law. Incidentally, Mr. Ahmed has alluded to mistreatment he has encountered during the Somaliland Presidential election of 2017 as his main reason for hopping the fence to Somalia.

We have put the question to many Somaliland officials who have worked with Mr. Jama on their view of his latest employer, many declined to comment. Questions regarding specific projects Mr. Jama has involved in and their sensitivity were also not answered.

Our attempt to reach Mr. Jama to ask if his arrest and mistreatment in Somaliland has influenced his decision to join Somaliland despite his well-documented support for the government of Somaliland or if the employment opportunity with Villa Somalia was too lucrative to pass. 

A Hero’s Send off for Somaliland’s Police Commander

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Somaliland’s Police Commander General Abdillahi Fadal Iman who has passed away yesterday in Hargeisa hospital was laid to rest today in the outskirts of the capital.

Madaxweynaha Jamhuuriyadda Somaliland Oo Ka Qayb-galay Aas Qaran Oo Loo Sameeyey Taliyihii Ciidanka Booliska…

Posted by Xafiiska Afhayeenka M JSL on Saturday, November 2, 2019

General Fadal as he was known has been a lifelong civil servant who has risen through the ranks and has been the longest serving Police commander.

President Bihi, in his eulogy to General Fadal described him as a founding father of the Police forces who has worked tirelessly day and night to strengthen peace and security throughout Somaliland.

At the General’s burial, the President of Somaliland HE Muse Bihi Abdi who spoke stated “General Fadal has dedicated his entire life to serving his nation.”

Despite a polarized political atmosphere in Somaliland, there was unanimous out-pour of sympathy and condolences for the Police Commander’s passing.

Brigadier General Abdirahman Liban Ahmed “Fooxle”

It is unclear when President Bihi will nominate a new Police Commander, but he has recently reassigned the late General’s Deputy Commander Brigadier General Abdirahman Liban Ahmed “Fooxle”

Power Boost – Somaliland President Inaugurates a 20 Million Dollar Solar Power Plant by Sompower

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The President of the Republic of Somaliland HE Muse Bihi Abdi inaugurated a new solar power plant by Sompower, the largest electricity producer and supplier in Somaliland.

President Bihi with Chairman of the opposition party of Waddani Mr. Irro

The statement from the Presidency stated that the new solar plant will produce 20 Megawatt and can supply eighty percent of electricity to Hargeisa.

Electricity rates in Somaliland is one of the highest in the developing world because of the price of diesel fuel and much like the developing world is thought to a major impediment to economic growth and industrialization.

While no potential price reduction was announced at the event headlined by President Bihi, government officials and the heads of the opposition parties of UCID and Waddani, it is expected the new solar power plant will have a major impact on electricity rates in Hargeisa and will encourage others to invest in clean energy.

According to the statement from the Presidency, the price tag of the solar power farm is 20 million US dollars which is the largest investment by a local company in Somaliland.

p9-768x511.jpg

Sompower, the largest energy producer and supplier in Somaliland is the result of coalescence of many independent electric suppliers. Dahabshiil Group is the majority stakeholder of Sompower.

During his speech, President Bihi congratulated Sompower for its effort and the investment it made in Somaliland and spoke of his government’s effort to encourage the free market. He also encouraged other companies to pool their financial resources to be undertake many important infrastructure projects that need investment.

Electric power line in Hargeisa, Somaliland.

Power lines has been a major issue in Somaliland and a hazard to the public that have caused deaths during the rainy season, it is unclear if there is a plan to regulate installation of electric lines and ensuring public safety; it is also unclear if there are similar projects in the pipelines for other cities in Somaliland.

False Advertising – Did Dahabshiil Group Bring SAMSUNG to Somaliland or Open an Electronics Store?

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On October 22nd 2019, the Vice President of Somaliland HE Abdirahman Abdallahi Ismail Saylici inaugurated a flagship SAMSUNG store in Hargeisa.

Also in attendance at this glitzy unveiling event was the well-known business tycoon, the Chairman of Dahabshiil Group Mr. Mohamed Saeed Dualeh arguably the wealthiest man in Somaliland.

CEO of Dahabshiil Group Mr. Mohamed Saeed Dualeh

From Somaliland government, there were the Ministers of Investment, Employment Family and Social Affairs, the Deputy Minister of Finance, the Chairman of Chamber of Commerce, the Director General of the Presidency and Hargeisa Deputy Mayor Mr. Abdiasis Mohamed Hashi “Agaweyne” and many well-known personalities including the former Minister of the Presidency and the Leader of Waddani Opposition party, Mr. Hersi Haji Hassan.

It is not unusual for government officials to attend the opening ceremony of local businesses and especially one that belongs to one of the largest corporations in Somaliland – Dahabshiil Group.

President Bihi cutting an inaugural cake with Dahabshiil CEO Mr. Mohamed Saeed Dualeh

Just a month ago Dahabshiil Group has opened a Hyundai car dealership that was inaugurated by President Muse Bihi Abdi and attended by chairmen of the opposition parties Dr. Abdirahman Mohamed Abdullahi Cirro and Eng. Faysal Ali Warabe.

There is something that stands out about Dahabshiil Group’s venture into retail electronics with its flagship SAMSUNG Somaliland store in Hargeisa, it does not seem to be an official SAMSUNG store, because, unlike Apple, Samsung has only recently launched its retail space with its SAMSUNG Experience stores and there are only a handful of these so far and Dahabshiil Group’s electronic store in Hargeisa is not one of them.

Countries with Samsung Experience stores

In Africa, there are five countries with SAMSUNG Experience Stores, these are Ghana, Nigeria, Mauritius, Kenya and Zambia. 

We could not find information on the purported partnership of SAMSUNG and Dahabshiil Group anywhere outside of the event and its media coverage in Somaliland, however, we have located somalilandsamsung.com poorly designed and insecure e-commerce website that seems different from the official SAMSUNG sites that shows an attempt to make it look authentic with SAMSUNG logo.

samsungsomaliland.com is hosted on GoDaddy.com and is designed on an open-source ERP platform known as Odoo. Something SAMSUNG would probably not use.

Deceptive Marketing and Unfair Advantage

In this case, Dahabshiil Group has used the Somaliland government to endorse its electronics store and portray it as a major milestone in Somaliland’s development and economic growth by partnering with SAMSUNG, when it in fact opened just another electronics store.

It is easy for a business to become an Authorized Dealer, this is the primary channels that many companies use to sell their products but the claim that Dahabshiil Group has partnered or is operating an official SAMSUNG store in Somaliland is deceptive marketing that dupes the consumer into thinking this is the store with authentic SAMSUNG products. 

What the government has done is give Dahabshiil Group an unfair advantage over similar businesses and inadvertently declare every SAMSUNG product sold in Somaliland as a potential fake unless purchased from Dahabshiil Group’s store. 

This will negatively impact many small businesses, some that may only have few phones in stock to sell to raise families.

To be fair, SAMSUNG phones are the most copied and there is high probability that Somaliland is awash with fake phones.

Dahabshiil Group did not respond to our question on whether it will be the only authorized dealer of SAMSUNG products in Somaliland and if the warranty is through a third party or is covered by SAMSUNG.

Boost to Somaliland Economy? Hardly

The first issue is the fact that Dahabshiil Group is claiming to have brought SAMSUNG, the Korean manufacturing giant into Somaliland, a claim that has been repeated by almost all the officials that attended the unveiling event including the Vice President. This is simply false.

https://www.youtube.com/watch?v=8MotXy0OBP8
Its not SAMSOM, its SAMSUNG and its not Somalia, its Somaliland

The Chairman of Somaliland’s Chamber of Commerce, Mr. Jamal Aideed Ibrahim even went as far as linking the electronics store as a tacit recognition of Somaliland by SAMSUNG.

There is also the claim that this store will directly contribute to Somaliland economy and could create jobs, a claim that most of the officials on stage vaguely touched on without specifying how a single store will do that.

Dahabshiil Group is a private company that is profit-driven and is under no obligation to divulge its secret sauce and convince the public how its businesses will benefit the nation at large. This could explain the lack of specificity in the potential effect on job creation and the economy.

Cellphone and other consumer electronics sold by one store will not make a difference to Somaliland’s economy and will create perhaps fewer than 30 jobs.

A boost to Somaliland’s economy would be if a company like Dahabshiil Group got into commercial fishing for export for premier markets such as Japan. Or perhaps get into the attractive industry by restarting the Berbera cement factory that was handed over to Dahabshiil Group back in 2017.

Government Props

There is nothing illegal about having the Vice President or the President attend and cut the ribbon from a new business in Somaliland, at least there are no laws against it, but with Dahabshiil Group, the largest business in Somaliland muscling its way into every facet of commerce and potentially destroying small business along the way with the government’s help in the form of talking props is at the very minimum morally wrong.

Dahabshiil Group did not respond to request for information on its partnership with SAMSUNG and details about the store.

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Notice: This is an article by Somaliland Chronicle. It is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. Under this license, all reprints and non-commercial distribution of this work is permitted.

Somaliland Government Urges the International Community to Stop Somalia from Acquiring Weapons

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The Minister of Information Hon. Mohamed Muse Diriye reminded that there is a weapons embargo in effect that prohibits Somalia from importing weapons. The Minister added that Somalia is actively seeking to acquire new arms from Eritrea and Turkey and added that others have already delivered shipments of armament to Somalia in violation of the UN weapons’s embargo.

“We all know that Farmajo’s government based out of Villa Somalia has been trying to acquire weapons and that they have asked Eritrea and Turkey and that other countries that I do not want to name have already given weapons to them [Somalia]”, said Minister Diriye.

The Minister stated that weapons acquisition by Somalia would endanger Somaliland and the Horn of Africa at large.

Turkey has given military equipment including to Somalia and is currently operating its only military base overseas in Mogadishu where it trains the Somali National Army. Many units of the Somali National Army, particularly those trained by Turkey are currently fielding weapons made and supplied by Turkey.

In addition to Turkey, on January this year, Qatar has supplied armored trucks to the Somali government.

In his stern warning to the International community and particularly to IGAD and the African Union, the Minister reiterated the need to enforce the arms embargo currently in effect in Somalia.

The Minister of information in his address to the International community through the local media stated that “We want the world to be careful and if they allow him to get weapons, we too should be allowed to import weapons”.

The Minister did not name Turkey and Qatar in his press statement.

Somaliland President Hosts EU and Swedish Ambassadors

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The President of the Republic of Somaliland HE Muse Bihi Abdi met with the European Union and Swedish Ambassadors to Somalia in the Presidential Palace.

According to an official statement from the Somaliland Presidency, the meeting with Ambassador Nicolás Berlanga Martinez and Ambassador Staffan Tillander of Sweden was to increase cooperation of the European Union and Sweden with Somaliland government on the changing geopolitical landscape of the Horn of Africa.

The statement added that the upcoming parliamentary and local government elections in Somaliland were also discussed since both the EU and Sweden are supporting Somaliland in the democratization process.

One issue discussed at length between the President and the Ambassadors was the ongoing dispute related to the selection of the new members of the National Election Commission. This is according to sources who were briefed on the discussion between the President and the visiting Ambassadors.

Abdirashid Mohamoud Ali (Riyo-raac)

The latest dispute between the government and the opposition parties centers on Mr. Abdirashid Mohamoud Ali (Riyo-raac) as one of President Bihi’s three nominees to the next Election Commission. 

Mr. Ali known as Riyo-raac is a member of the Kulmiye party and has been a vocal supporter of President Bihi during the bitter elections of 2017.

Exclusive – Disagreement between Somaliland and British Intelligence Services May Disrupt Cooperation

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According to sources, a major disagreement between Somaliland and British intelligent services may disrupt their close cooperation.

Sources speaking to Somaliland Chronicle on condition of anonymity due to the sensitivity of the issue, state that the British intelligence services object to the new working parameters set by President Bihi’s new appointee to head Somaliland intelligence services.

According to multiple sources, the disagreement issue has reached the President of Somaliland HE Muse Bihi Abdi and all indications are that he is backing up his intelligence chief.

Somaliland security services especially the intelligence apparatus has been accused in the past of being an extension of their foreign benefactors.

President of the Republic of Somaliland HE Muse Bihi Abdi has reappointed the current head of the intelligence services early this year to an experienced hand who had served multiple administration in the past who has also been known to not welcome foreign interference in his agency’s mandate. In the past, he has resigned from his position citing interference.

It is unclear if the issue is related but there is also an ongoing disagreement between Somaliland Police whose elite counter-terrorism units are trained and funded by Britain. According to sources, the British authorities have complained about the use of facilities they have financed for extrajudicial detentions such as that of Member of Parliament Ahmed Dhakool who was briefly detained in mid-May.

It is unclear how disruption of the close cooperation between Somaliland and British intelligence services would affect Somaliland’s effort in combating and terrorism.

Security insiders in Somaliland have declined to comment and efforts to get official statement from Somaliland authorities for the intelligence services and police-related matters were unsuccessful.

Force Multiplier – Somaliland Government’s Effort to Harness Information Technology

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The President of Somaliland HE Muse Bihi Abdi convened an extraordinary session of his cabinet meeting on Saturday to discuss implementation of a government wide e-government system.

This is the first time in Somaliland’s history where information technology is being considered as a tool to deliver government services to the public.

Besides the e-government, another issue that was discussed in this extraordinary session was the groundbreaking idea of including information technology in the national curriculum.

Because of deregulation and fierce competition among multiple telecom providers Somaliland has one of the highest rates of cellular phone adaption and coverage relative to its size and GDP in third world countries.

While meritocracy has been an issue in Somaliland, the Minister of Telecommunication and Technology Dr. Abdiweli Abdillahi Soufi is the exception, he holds a doctorate in information technology and is one of the most qualified candidates in President Bihi’s cabinet and has had added good fortune to be assigned to what seems to be his natural habitat.

Dr. Soufi has had few mishaps in his early days as the Minister of Telecommunication and Technology when he learned the hard way that it was difficult to get a top-level domain for Somaliland from ICANN and even harder to get Somaliland it’s country code. 

The Ministry of Telecommunication and Technology is one of the most anemic in terms of budget and is tasked with the Herculean task of regulating one of the most powerful industries in Somaliland – the telecom companies.

Dr. Soufi is described as a quiet operator who unlike many government officials does not enjoy attention has done something remarkable, he has convinced President Bihi that the silver bullet to deliver effective services to the public is by implementing an e-government system.

Somaliland is the perfect candidate for e-government, from allowing citizens to renew their driver’s licenses online to ordering a copy of their marriage certificate to the more complex civic duties such as local and national voting. 

The Challenges

Implementing an e-government project is no small feat and has many challenges, the biggest of which is a turf war with other ministries and other agencies that having a high-level sponsor such as The President himself is the solution and it seems Dr. Soufi already has the President’s ear. 

There are many IT heavy projects at various stages of completeness or failure – depending on your perspective. Mostly funded by the international community to the tune of tens of millions of dollars such as the government accounting system under the Ministry of Finance. 

Other critical systems are being managed or developed by foreign firms, these include the court system developed by the British firm Axiom International which was also awarded the implementation of the equally critical Justice Ministry’s judicial case management system by the UK.

Some are yet to start such as the Human Resource Management system that is part of the World Bank funded project for Somaliland’s Civil Service Commission.

Technically, none of the existing systems fall under the definition of an e-government system but it is important to understand that none of them fall under the jurisdiction of the Ministry of Telecommunications and Technology.

While most of the projects predate President Bihi and his Minister, Dr. Soufi, it is unclear if the Ministry’s technical advice in any of the above projects has been sought especially on ensuring that these systems are properly secured.

Critical Choices

Cloud vs Onprem – One of the most consequential decision that will determine the project cost and delivery timetable is if the e-government system is cloud based or a traditional on-premises route where Somaliland government will build data-centers, populate it with expensive gear and run dark fiber across the country to interconnect the system. 

Open source or Proprietar– Another equally critical decision is the choice of software where providers such as IBMOracle and Microsoft could cost millions and comparatively Open source products that serve the same purpose are free granted that the right technical experts are sourced.

Tight as a drum – One area that cannot be compromised on an e-government system is the security of the system because the slightest misconfiguration could make the system critical to exploitation that could include data manipulation of catastrophic magnitude. 

Source of funding – One of Somaliland weakness has been its reliance on foreign aid on many critical projects where spending the funds has been a priority and filing reports with donors instead of delivering a lasting solution built to address a specific need.

Another issue is the strings that come with foreign-funded projects through consultants or as in Axiom where entire companies have followed their country’s aid money to Somaliland.

Can The Doctor Deliver?

If anyone can make an e-government system a reality in Somaliland, it is Dr. Soufi but he will need the full support of the President to ensure the rest of his government falls in line to make this critical national infrastructure is implemented correctly, on budget and onetime.

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Notice: This is an article by Somaliland Chronicle. It is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. Under this license, all reprints and non-commercial distribution of this work is permitted.