Murky Refinery – How Realistic is the Proposed Oil Refinery in Berbera, Somaliland?

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April 15, 2019

On April 10, 2019 the Vice President of the Republic of Somaliland Mr. Abdirahman Saylici and a delegation of cabinet ministers and other high-ranking officials from Somaliland government inaugurated one of the largest investment projects in Somaliland – An oil refinery plant in Berbera.

There are two foreign companies involved in this project Singapore New Silk Somaliland Energy CO LTD (SNSSEC) and China Power.

*Mr. Abdillahi Abdi Muse (left) with Ministers of Transportation and Commerce.*

According to the Mr. Abdillahi Abdi Muse, a Somaliland businessman and one of the speakers at the ceremony, Singapore New Silk Somaliland Energy CO LTD (SNSSEC) is the sole investor of this project. His connection to the project is unclear.

Little is known about this project and details about the companies involved such as Singapore New Silk Somaliland Energy CO LTD (SNSSEC) are scarce. The closes thing we can locate is a one-year-old company with a similar name that was registered in March 2018.

An oil refinery is an expensive undertaking and the cost of setting up such an operation is in the billions. If true, this would be the largest investment by a foreign company in Somaliland.

Unlike other projects, the number of government Ministers and high-ranking officials present at the ceremony showed Somaliland’s extraordinary exuberance in this new investment opportunity.

So what do we know so far? Not a lot unfortunately. Successive Somaliland administrations and especially the current government has not done a good job in vetting companies it has so far signed deals where the announcement ceremonies had more thought put into them than basic due diligence.

*Vice President Saylici at the launch of Swedinvest Scandinavia in Sweden*

Somaliland’s history is littered with many phantom investments that never materialized including a billion dollar deal with a non-existent Chinese bank, an Australian firm setting up a salt plant to end hunger, a Swedish conman who used the Vice President as a prop when he launched one of his many scam companies.

*Have you seen this man?* Vice President Saylici dining with Mr. Thorstensson and his family.

Singapore New Silk Somaliland Energy CO LTD (SNSSEC) may as well be one of these except there is not enough data to reach the most basic of conclusions – and that is a red flag.

Singapore or China?

According to a language expert we have consulted to help us translate and answer if the foreign principals from Singapore New Silk Somaliland Energy CO LTD (SNSSEC) are in fact from Singapore or China, they were unanimous in pointing out that their accents are Chinese mainland.

Even though one of the foreign executives at the groundbreaking ceremony described the event as “a day that brought Singapore and Somaliland together”.

China is investing huge sums in its belt and road initiative and while China has so far not dealt with Somaliland, there is a small chance this project might be connected.

Image result for somaliland national service — *President of Somaliland Muse Bihi Abdi at the opening ceremony of the National Service program.*

Several people who spoke at the ceremony including the Vice President and foreign officials from Singapore New Silk Somaliland Energy CO LTD (SNSSEC) have indicated that up to 300 workers would be recruited from the Somaliland National Service and would be sent to China to be trained to work at the plant.

Price tag to build a oil refinery? Billions of Dollars

High barriers to entry and razor-thin margins make oil and gas industry particularly brutal where a plant’s size and its production capacity determine its profitability. According to oil and gas experts, a plant with less than 100,000 barrels per day capacity is not profitable.

According to oil industry experts, oil refineries are quintessentially economies of scale and the more output the larger the profit.

We have found 14 operational facilities throughout the continent that fit the bill to figure out what it takes to get one up and running.

Refinery Name	Location	Company	Capacity
Skikda Refinery	Algeria	Sonatrach	356,500 bbl/d
Ra’s Lanuf Refinery	Libya	NOC	220,000 bbl/d
Port Harcourt Refinery	Nigeria	NNPC	210,000 bbl/d
Cairo Mostorod Refinery	Egypt	EGPC	142,000 bbl/d
El Nasr Refinery	Egypt	EGPC	132,000 bbl/d
Mohammedia Refinery	Morocco	SAMIR	127,000 bbl/d
Dakar Refinery	Senegal	SAR	127,000 bbl/d
Warri Refinery	Nigeria	(NNPC	125,000 bbl/d
Sapref Refinery (Shell & BP South African Petroleum Refineries)	South Africa	Sapref	125,000 bbl/d
Sasol Refinery (CTL)	South Africa	Sasol	125,000 bbl/d
Engen Refinery (Enref)	South Africa	Petronas	122,000 bbl/d
Zawiya Refinery	Libya	NOC	120,000 bbl/d
Alexandria El Mex Refinery	Egypt	EGPC	117,000 bbl/d
Alexandria MIDOR Refinery	Egypt	EGPC	100,000 bbl/d

Take the biggest one, Skikda Refinery in Algeria with an impressive output capacity of 356,500 bbl/d. It is a rather an old plant built in 1979 but a recent upgrade contract awarded to Samsung Engineering cost 2.6 Billion US Dollars. That is 2.6 Billion to upgrade it, imagine what it cost to build it.

In an effort to cut fuel imports from the United States, Mexican President Andrés Manuel López Obrador recently announced a 400,000 barrel per day plant in at the whopping price tag of 8 billion dollars.

Ras Tanura Refinery is the oldest refinery in Saudi Arabia. It has been subject to several upgrade and renovation programmes, increasing its processin — Ras Tanura Refinery is the oldest refinery in Saudi Arabia with capacity of
550,000 barrels per day

Refineries in the oil rich Gulf nations dwarf their African counterparts. One of the largest is Ras Tanura Refinery in Saudi Arabia, operated by Saudi Aramco has an output capacity of 550,000 barrels per day.

So many questions, so little information

As big and brash the announcement of this project was, it seems that not many people actually know what it entails.

Out of several Somaliland government officials including some close to the Vice President we have reached out for comments, only one minister in President Bihi’s would speak on condition of anonymity “This one is straight from the top“ and would not elaborate further by what he meant from the top. He asked if we saw him at the ceremony and added “I am staying out of this one“.

There is a misleading line that several government officials including the Minister of Commerce Mr. Mohamed Hassan Sa’ad ‘Sachin’ and the Director of Central Bank of Somaliland Mr. Ahmed Hassan Arwo that this would be the third refinery to be build in Africa – This is categorically false and we have found quite a few refineries operational in the continent.

In fact Mackinsey Energy Insight has a list of 42 different refineries with varying output capacities operating throughout Africa.

Mr. Arwo did not respond to questions about his statement and request for additional details regarding the project.

Other details such as the source of the crude oil are not entirely clear, though Somaliland’s location puts it in close proximity to many OPEC members who export large quantities of crude.

Mr. Abdalla (middle) at the refinery plant groundbreaking ceremony.

According to Yusuf Abdalla a businessman with deep ties to Somaliland government and a close relative of the former Minister of Investment Samsam Abdi, the plant production capacity will be around 50,000 barrels per day.

Though we have not had the chance to ask Mr. Abdalla a lot of the questions we had, including his level of involvement in the project, however, he mentioned that the project is still in preliminary stages where an environmental study and others preparatory work is yet to start and added that only a Memorandum of Understanding was signed.

*Vice President of Somaliland Abdirahman Saylici breaking ground with foreign investors in Berbera.*

This contradicts the essence of the ceremony with shovels and hard hats that symbolized as a project that is being started.

Subsequent attempts to reach Mr. Abdalla for additional details were unsuccessful.

Unconfirmed reports indicate that China Power will be building a large power plant as the initial phases of the project and though the fact that there is an energy production aspect to the project was alluded to some of the speakers at the ceremony, the size of the plant or its output capacity are unclear.

It is unclear how much land Somaliland government as allocated for this project, but an oil refinery will require considerable land. We could not find information related to the size of the land, location and the terms whether leased or given to the company.

There are too many red flags with this project that make it look like many of the phantom deals Somaliland has entered the past. The missing common denominator is once again basic due diligence.

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.

The Djibouti VS Guelleh Pantomime: The Only Losers are People of Somaliland

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Staff

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April 8, 2019

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Public opinion in Somaliland is currently preoccupied with the case of Mr. Ahmed Osman Guelleh, a prominent Somaliland-Djibouti tycoon and owner of Somaliland Beverage Industries against the authorities of the Republic of Djibouti. The political intrigue, the international manhunt (and possible INTERPOL involvement), as well as the clan dimensions of the case are all very interesting, but essentially, this is a case of corruption on a scale never seen before in the region, one that is directly taking advantage of the people of Somaliland.

A press conference was held on 4 April by the President of Somaliland’s spokesman, detailing the case against Mr. Guelleh and explaining the Republic of Somaliland’s involvement in mediating between the concerned parties.

Around the 0:35 marker, the Presidential spokesman stated:

“There is a standing debt owed by GSK Group, a company owned by Mr. Ahmed Osman Guelleh to the French bank BCIMR, a subsidiary of the BRED cooperative group which is in turn owned by the international bank BMCE”.

What is interesting here, is the link between BCIMR, a Djibouti-based bank, and the Republic of Somaliland, a country where no international bank has opened an office to date.

Why would a foreign bank that is – in theory – in full compliance with international banking standards with all of their risk-management directives and procedures choose to take the risk of operating in an unrecognised state such as Somaliland?

The answer might lie a lot closer than one thinks, it revolves around the very basic needs of elite oligarchs in need of financial services including the secure storage for proceeds of their Somaliland operations, and a group of bankers willing to facilitate these services for a fee.

The names mentioned by the Somaliland Presidential spokesman are important here: “BCIMR” … “BRED” … and “BMCE”.

“BCIMR” is of interest to Somalilanders due to its appearance in Wikileaks revelations dating back to 2009. A conversation between US senior Somalia desk officer in the US Embassy in Djibouti, the Djibouti-Somalia watcher and Banque Pour le Commerce et l,Industrie’s (BCIMR) CEO Ould Amar Yahya was leaked by the site, with contents that were not given much attention by Somaliland’s media. Here is an important excerpt:

Senior Somalia Officer and the Djibouti Somalia Watcher discussed Somalia’s economic outlook with BCIMR’s Yahya on October 1. Yahya presented an optimistic prediction for the future if security was achieved, noting that Somali businesspeople that deal in every imaginable commodity sold throughout the region are the foundation of BCIMR’s deposit base. Somali qat (a leaf that produces a mild narcotic effect when chewed) livestock, sugar, pasta, edible oil and cement in particular have enjoyed particularly high profits in recent years; and are the backbone of the regional economy. A score of dealers in these commodities have current individual accounts worth more than $150 million each, and there are hundreds of other accounts in the seven to eight-figure range, Yahya said. And those are just the accounts for individual Somali businesspeople. When you add corporate, local and national government, NGO, international organization and individual accounts, Yahya said that BCIMR’s projected growth for 2009 was in the process of being revised upward, despite the global economic crisis. As soon as the security situation permits, Yahya continued, BCIMR plans to provide financing for companies involved in Somalia infrastructure repair projects, such as the Berbera port renovation project proposed by the French-owned Bollore Africa Logistics Group.

Who Benefits From Somalia’s Continuing Disarray?

At a time when local, regional and international actors are coalescing behind the TFG, friends of Somalia have to acknowledge who benefits from disarray in Somalia and discuss ways that they could reap similar benefits from a re-unified Somalia, Yahya said. Local and international businesspeople make astronomical profits (despite the risk) since they are relieved of the necessity of paying the normal costs of doing business in a stable society. Front-line states receive income, as well as international assistance, that would go to a unified Somalia if it existed. And, international organizations and NGOs that are created to work in Somalia expend the bulk of their resources on supporting ever-increasing staffs that work “on” Somalia in Nairobi, but with few in-country initiatives.

The leaked conversation reveals shocking levels of corruption among Somaliland’s business elites and oligarchs (of whom Mr. Guelleh is one). The CEO BCMIR clearly states a couple of stunning facts:

1- The Somalilander business elites, particularly ones dealing with commodities are the foundation of BCIMR’s deposit base.

And more importantly:

2- That a score of these businessmen have individual accounts with the bank worth more than $150 million, each.

The Oxford dictionary describe a score as “a group or set of twenty or about twenty”.

To have 20 businessmen from Somaliland have individual accounts worth more than 150M USD brings a total foreign-holdings of Somaliland oligarchs in excess $2 billion!

For businesses operating in such an impoverished state, with a population suffering acute deprivation, to have profits of this magnitude is nothing short of national treason. Somaliland has inadvertently created a climate ripe for huge businesses to get infinitely richer on the backs of the poor, unemployed and suffering people of Somaliland. Many of the most basic commodities are signed off to be monopolised by one mega-dealer who owns the exclusive rights to import the commodity and set its price with little scrutiny by the government.

This is very dangerous. And to make matters worse, these massive businesses would choose to store their earnings in offshore accounts in Djibouti instead of investing in the country, creating jobs, and contributing to the local economy. There is also the issue of inflation exacerbated by these huge sums of money leaving the country and removing much needed hard currency from circulation.

But wait, there is a twist…

BCIMR being the largest bank in the region, is a subsidiary of BRED Banque Populaire, this entity owns 51% of the company whilst 16% is owned by a Yemeni bank and the remainder 33% is owned by… wait for it… The Government of Djibouti.

The chain of corruption engulfs not only greedy Somaliland oligarchs and a French bank, but it extends to the Government of Djibouti, who benefits directly from the current situation of complete monopoly of Somaliland’s markets by a few exceedingly powerful oligarchs such as Mr. Guelleh.

Do not get distracted by the games being played by Mr. Guelleh or the Government of Djibouti. The only real losers are the people of Somaliland.

About the Author: Warsame Abdinour is an Engineer from Somaliland based out of Wellington, New Zealand and can be reached @
warsameabdinour@gmail.com

His Previous op-eds include Saami Qaybsi: The Tyranny Of Somaliland’s Minorities – A Critique Of Ahmed I. Samatar’s Op-Ed

Disclaimer: The viewpoints expressed by the authors do not necessarily reflect the opinions, viewpoints of Somaliland Chronicle and it’s staff.

Notice: This article by Somaliland Chronicle 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: Areas We Can Improve without Recognition

By

Staff

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April 7, 2019

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Often we heard the following oft-repeated, but empty, rhetoric from our politicians: “we cannot make improvements in many areas because we are not yet recognized or have no funding.” But there are many areas we can improve without recognition and with limited funds. Although areas we can improve abound, this short article attempts to shed light on few areas.

Traffic Police

Somaliland’s traffic police have the ability to make outstanding improvements. These improvements will have two positive outcomes: first, it will generate revenue for the traffic police; and second, it will improve and enhance overall public safety. It is a win-win situation. They should effectively enact and enforce the following traffic laws:

They should erect traffic sings at the side of, or above, all main roads in Hargeisa to give instructions for drivers. These traffic sings include, but may not limited to, the following: parking signs; speed limit signs; direction; prohibitory signs; special regulations signs; danger warning sings; mandatory signs; priority signs; etc. Violators of these traffic signs should be fined according to the traffic sign. For instance, let us say, a traffic sign has the road speed limit of 48 kph. Any driver who exceeds should be fined. Or if a driver parks on a “no parking” area, he or she should also be fined.
They should have the mandate to issue driver’s licenses. Before issuing driver’s licenses, they should test potential drivers theoretically as well as practically. When testing drivers and issuing driver’s licenses, they should levy fees.
They should enact, or enforce a minimum driving age—which is the age at which an individual can obtain a driver’s license. Let us say, anyone over fifteen (15) and anyone over eighty (80) years. Any driver younger than eighteen or older than eighty should be fined

These fines and fees for tests and driver’s licenses will generate revenues for the traffic police. In addition, it will make drivers adhere to the existing traffic laws which, as a result, will improve and enhance public safety. If the revenues are managed properly, the traffic police will then increase the salary of its officers and it will also acquire traffic cars, walkie-talkies, computers, etc. These improvements require neither recognition nor huge funding.

Police National Database

Currently, our police stations utilize the outdated “Occurrence Book” (OB) to record the information of the arrestees; such as, their names, ages, arrest day, nature of the crime, etc. The OB contains thousands of names of offenders/criminals. It is almost impossible to retrieve specifically the names of the repeat offenders; that is, if someone commits a crime several times, our police are unable to retrieve prior arrest records of the offender. For instance, let us say that a young man commits a robbery and he is arrested at the same police station on 05 November, 2018; 29 February, 2019; 01 March, 2019; and again 20 March, 2019. Unless the police recognize the robber, it is impossible for the police to know that the young man commits the same crime many times. If a single police station is unable to do so, how about when the offender commits similar crime at different locations in Hargeisa, or worst in other cities like Burao, Borama, Berbera, Las-anod, etc. This consumes not only the police’s limited resources, but it also creates a safe haven for repeat offenders and criminals.

Our police can make the following improvements:

They need to acquire simple desk-top computers, database software, finger printing machines, etc. The aforesaid equipment could easily be obtained with cheaper prices or for free. When an offender is finger-printed and his information is entered into a computer, it is easy to retrieve his prior arrest record. This will help the police and the court to punish the repeat offenders which will contribute to the overall public safety. It will also help police to use its resource effectively.
They need to hire university-graduated students to perform the aforesaid duties since graduates are savvy. This will have many benefits: it will reduce the current unemployment rate and it will also encourage university student focus on their studies since they realize that they would be employed. This improvement can be easily accomplished without recognition or funding.

Somaliland Medical Association

Currently, our healthcare system is in shatters. There are countless medical charlatans (or fake doctors); imported and unregulated medications; and skyrocketed unregulated clinics and pharmacies. To contain, control and improve our devastated healthcare system, it is high time to create Somaliland Medical Association (SMA). The SMA will consist professional and independent medical team and will have the required knowledge and expertise to monitor and set standards for healthcare system. To do so, the National Health Professional Commission should outsource its mandate of overseeing healthcare system to SMA. The SMA shall:

Have the mandate to issue and revoke licenses. Currently, there are countless medical charlatans (fake medical professionals) operating in Somaliland. Therefore, in order to contain these medical charlatans, the SMA shall reexamine all existing medical professionals and have the mandate to issue, renew, and revoke any medical licenses.
Set standards for imported medications. Currently, our imported medications are unregulated. The businesspeople import fake, expired, and ineffective medications. Therefore, the SMA will have the mandate to oversee all imported medications; that is, it will act as a quality control agency for imported medical and health related items.
Set standards for medical schools and internship programs. Currently, there are countless ineffective universities “medical departments.” The SMA will have the mandate to oversee these departments and shall revoke the license of any department that fail to meet the SMA standards.
Set standards for spiritual healers. Currently, there are numerous spiritual healers throughout the country. Majority, if not all, of these spiritual healers run healing centers while they are not medically trained. The SMA will have the mandate to assess, examine, and set standards for these spiritual healers.

If SMA is created and is permitted independently to oversee the aforesaid, and many other, aspects of our healthcare system, it will improve and enhance our healthcare system.

Improving these areas require neither recognition nor huge fund.

“If there is a will,” the old adage goes, “there is a way.”

About the Author
Abdi Hussein Daud and can be reached @ abdihdaud[at]yahoo.com

Disclaimer: The viewpoints expressed by the authors do not necessarily reflect the opinions, viewpoints of Somaliland Chronicle and it’s staff.

Notice: This article by Somaliland Chronicle 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.

Breaking – German Ambassador to Kenya, Seychelles and Somalia to visit Somaliland

By

Staff

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April 7, 2019

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A delegation led by the Ambassador of Federal Republic of Germany to Kenya and Head of Mission to Seychelles and Somalia, Annett Güntheris is coming to Somaliland tomorrow April 8th.

Ambassador Güntheris who is based in Nairobi is also the Permanent Representative of Germany to the United Nations Environment Program (UNEP) and to the United Nations Human Settlements Program UN-HABITAT.

The Federal Republic of Germany is Somaliland’s biggest donor on infrastructure projects including Hargeisa water expansion, road network and others. According to sources, diplomatic sources, Ambassador Güntheris will be visiting some of these projects.

Image result for Linneweber GIZ — GIZ Country Representative Mr. H. Linneweber

The German Ambassador are accompanied by the Deputy Ambassador to Somalia Markus Bollmohr, GIZ Country Representative Mr. H. Linneweber and others,

Breaking – United States Ambassador to Somalia Donald Yamamoto to Visit Somaliland – Update

By

Staff

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April 7, 2019

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According to sources in Ministry of Foreign Affairs and International Cooperation and other diplomatic sources in Nairobi, the United States Ambassador to Somalia, Donald Yamamoto is expected to visit Somaliland.

This the first time Mr. Yamamoto is visiting Somaliland since appointed to head the United States Mission to Somalia on October 19, 2018

Details of Mr. Yamamoto’s delegation and itinerary were not clear, but sources in Somaliland government state that the United States is looking to assist Somaliland in the security sector, it is unclear if Mr. Yamamoto’s visit is related.

Updated: Friday, April 12 2019.

The United States Ambassador to Somalia, Mr. Donald Yamamoto and his delegation arrived in Hargeisa, Somaliland with his delegation and met President Muse Bihi Abdi.

President Bihi met with Mr. Yamamoto and his delegation in the Presidency where they discussed investment opportunities for US companies, democracy and Somaliland’s upcoming elections.

President Bihi Fires the Head of the NHPC and Replaces him with A Real Doctor

By

Staff

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April 7, 2019

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President of the Republic of Somaliland HE Muse Bihi Abdi today sacked the head of the The National Health Professions Commission Dr. Ahmed Hashi Oday and appointed Dr. Lul Jirde Husein Dualeh to replace him.

New Chairwomen of the NHPC Dr. Lul Jirde Husein Dualeh

Dr. Oday a veterinarian has been at the helm of the NHPC since its founding and under his leadership the agency has been largely non-functional and only small fraction of medical professional professional has been licensed.

President Bihi’s choice to lead the NHPC, Dr. Dualeh is Canadian trained pediatric doctor and one of the original founders of the NHPC.

Ambassador Yamamoto is the Personification of America’s Shrinking Stature in the Horn of Africa

By

Staff

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April 5, 2019

1

Ambassador Donald Yamamoto assumed the role Somalia Ambassador right around the time President of Somaliland HE Muse Bihi Abdi was elected. Yet Mr. Yamamoto has so far chose to completely ignore Somaliland.

Ambassador Yamamoto in Puntland province of Somalia last week

Understandably, one can argue that Ambassador Yamamoto is the US Ambassador to Somalia and directly engaging with Somaliland might be out of bounds and could possibly anger and earn him a Persona Non Grata Status from his hosts in Villa Somalia.

U.S. Ambassador to Somalia Donald Y. Yamamoto and Jubaland President Ahmed Islam Madobe met to discuss regional politics and development issues. pic.twitter.com/jIABeeKQbb
— U.S. Mission-Somalia (@US2SOMALIA) April 5, 2019

That argument falls apart very quickly when one considers the bold actions of his predecessor, Ambassador Stephen Schwartz who not only engaged Somaliland directly but has successfully brokered the ceasefire between Somaliland and Somalia on the border dispute in Tukeraq.

@US2Somalia Ambassador to #Somalia Donald Y. Yamamoto and Puntland President Said Abdullahi Deni met to discuss regional politics and economic development. pic.twitter.com/zlKsFjdTr1
— U.S. Mission-Somalia (@US2SOMALIA) April 1, 2019

And to the possibility that Somalia may assign a PNG status to Mr. Yamamoto? We say hogwash! the United States is not the United Nations.

Historically, United States Ambassadors have a great latitude and their core mission is to advance the interests of the United States. However, Mr. Yamamoto has failed this basic tenent of his assignment by prioritizing a relationship with provinces of Somalia over Somaliland and its strategic importance to the long term interests of the United States. Hint: Red Sea and control of Bab Al-Mandab.

it’s never too late to do anything. We must focus on what is important.
Ambassador Yamamoto

Even worse, the United States Embassy in Somalia in Nairobi (We meant to write Mogadishu) is helping sell the Villa Somalia’s propaganda to hide its abysmal failure in securing that country and assert any meaningful control beyond few kilometers.

There are reports of the Somali Prime Minister Hassan Khaire heading to Washington DC to meet with members of the Trump Administration including National Security Adviser Mr. John Bolton. We imagine that Mr. Yamamoto has not shared an accurate assessment with the US government on how things are going or the fact that he may have granted a visa to a member of the Prime Minister’s entourage with suspected ties to terrorist groups – the head of NISA Mr. Fahad Yasin.

If unconfirmed reports of Mr. Yamamoto’s visit to Somaliland are true, Somaliland government should reject his effect to make Somaliland look like the provinces of Somalia he has been wandering.

While Mr. Yamamoto does not have the authority to recognize Somaliland, he must remember that the people of Somaliland has decided to stand on their own and have not been part of Somalia for 30 years.

Ambassador Yamamoto once said “it’s never too late to do anything. We must focus on what is important”. This is a sound Advice Mr. Yamamoto.

Notice: This article by Somaliland Chronicle 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.

PRESS RELEASE: HIGH-LEVEL VISIT BY INTERNATIONAL PARTNERS TO HARGEISA, SOMALILAND

By

Staff

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April 4, 2019

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4 April, 2019

A high-level delegation of Ambassadors and representatives from Denmark, European Union, Finland, Norway, Sweden, Switzerland and the United Kingdom visited Hargeisa, Somaliland, on 2 to 3 April 2019. The delegation met with H.E. President Muse Bihi Abdi, all political parties, Parliament, the Electoral Commission and representatives of civil society organisations.

The main purpose of the visit was to demonstrate the partners’ continued support for Somaliland’s democratisation process and, in that context, underline the need for parliamentary and local council elections to take place on time on 12 December 2019. The delegation noted with concern the lack of progress in the preparations for the elections due to disagreements between the three main political parties and in the passage of electoral legislation in the Parliament.

The delegation regretted this state of affairs, and underlined the risks that further delay would pose to the democratic credentials and international perception of Somaliland. Partners urged all political parties to demonstrate their commitment and will to make the necessary compromises to unblock the stalemate and to support the work of the Electoral Commission. They also urged the House of Representatives to accelerate the passage of the Electoral Law.

They underlined that elections should be held according to the principles of inclusiveness, transparency and credibility in a peaceful environment and stressed that women and minorities needed to be provided with a legally enforceable right to participate and be elected.

The delegation expressed the willingness of the international community to work with Somaliland to address the current drought. The delegation stressed that the long-term solution to the negative impact of recurrent droughts lay with a sustainable and resilient development trajectory.

They also welcomed a commitment by the H.E. President Muse Bihi Abdi to pursuing dialogue with H.E. President Mohamed Abdullahi Mohamed Farmajo and with H.E. President Said Abdullahi Deni of Puntland, including on current security challenges.

The delegation thanked their hosts for their warm hospitality during the visit and reaffirmed their support for Somaliland’s development and democratisation.

END

Somaliland Presidential Spokesman Asserts that Mr. Geele is Sought by INTERPOL

By

Staff

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April 4, 2019

1

In attempt to clarify the ongoing row over the dispute between the Djibouti government, a private bank and Somaliland businessman Mr. Ahmed Omer Geele, Presidential Spokesman Mr. _ made a statement that further muddied and added more confusion to the case that has captivated Somaliland in recent days.

Mr. Mahamoud Warsame Jama stated that Somaliland has made its position clear that court judgement from Djibouti or France has no merit in Somaliland and gave a chronology of events that the public was unaware before such as the visit of the French Ambassador in Nairobi to Somaliland to discuss the case of BCIMR, parent company and GSK and Mr. Geele.

During the press briefing, the Presidential spokesman contradicted an earlier assertion by the Minister of Interior by stating that Mr. Geele is sought by the INTERPOL.

Somaliland Chronicle has checked INTERPOL Red Notice database and was unable to substantial the Presidential Spokesman’s claim of an INTERPOL interest in Mr. Geele. We have been unable to reach Somaliland Presidency for comments.

Mr. Jama confirm the existence of documents from Djibouti to Somaliland government and accused the SBI Chairman Mr. Geele of illegally obtained them from the Ministry of Foreign Affairs and misrepresenting it to his tribal leaders as a warrant for his arrest. Mr. Jama id not specify what laws were broken and if the documents were considered classified and whether Mr. Geele was entitled to receive a copy.

One of the GSK properties allegedly confiscated by Djibouti

Finally, the Presidential Spokesman linked the case to Somaliland’s image and its commitment to rule of law and to ensure the outside does not view Somaliland as a place where one can come to evade his debts and hide from the law.

Unconfirmed reports state that a delegation led by the Minister of Interior of Djibouti and Chief of Police are headed to Somaliland early next week. It is unclear if the purpose of thier visit is related to the case of Mr. Geele.

Djibouti’s Undue Influence over Somaliland and the Case Against Mr. Ahmed Osman Geele

By

Staff

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April 4, 2019

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Mr. Ahmed Osman Geele also known as Ina Geele Arab is one of the most prominent businessmen in Somaliland and the owner of Somaliland Beverage Industries (SBI) which produces Coca-Cola products, an assortment of juices and Lis dairy products.

What set Mr. Geele apart from other wealthy Somaliland businessmen is the manufacturing nature of his business and the staggering price tag of 17 million US dollars it took to to build out the beverage plant.

International media including the Financial Times and The Guardian in 2012 widely covered the inauguration of the SBI’s plant in Somaliland.

Mr. Geele is a dual national of Somaliland and Djibouti and has done business in the latter before he started SBI in Somaliland but since October 2017, Djiboutian authorities sought to arrest Mr. Geele for unspecified crimes.

According to sources familiar with the row between Mr. Geele and the President of Djibouti Mr. Ismaïl Omar Guelleh, the dispute centers on Mr. Geele’s decision to manufacture the Lis dairy products in his SBI facility in Somaliland rather than build a plant in Djibouti in partnership with the first lady of Djibouti Ms. Kadra Mahamoud Haid.

Because of the fallout with the first lady, authorities in Djibouti confiscated all of Mr. Geele’s assets. An asset estimated to at least 100 million US dollars.

Mr. Geele and Djibouti authorities’ dispute and legal tangling spilled over to Somaliland where unsubstantiated reports of an imminent extradition of Mr. Geele and tribal elders warning of dire consequences dominated social media sites.

The issue was briefly compounded by a fake letter purportedly written and signed by the former Minister of Justice Mr. Abdiqani Ateye (Fariid) instructing law enforcement agencies to apprehend Mr. Geele due to crimes he committed against Djibouti. The Minister has since issued a statement calling it fake news.

The Minister of Interior Mr. Mohamed Kahin Abdi who was asked about the alleged extradition request from Djibouti, told reporters it is untrue that there is a warrant for Mr. Geele’s arrest.

Director General of Ministry of Justice
Mr. Abdirahman Sheikh Hassan

So has Djibouti asked Somaliland to extradite or take any action against Mr. Geele? The answer is no but there is more to it than that. Let’s unpack what we have learned so far.

Ministry of Foreign Affairs stamp and the Director General Mr. Abdinasir A. Hersi signature

Both ministers who spoke about this issue told partial truths and neglected to mention that Djibouti has submitted a legal document through its diplomatic mission in Somaliland. Mr. Ateye, the Minister of Justice at the time is the second ministry to have dealt with this document.

Ministry of Justice Stamp and signature of the Director General Mr. Abdirahman Sheikh Hassan’s signature

Djibouti submitted a legal document from its Appeals Court through its Ambassador to Somaliland who delivered it to the Ministry of Foreign Affairs and International Cooperation where the Director General Mr. Abdinasir A. Hersi signed, stamped it and sent it on to the Ministry of Justice. The Director General of the Ministry of Justice Mr. Abdirahman Sheikh Hassan also stamped, signed it and forwarded it to the Appeals Court in Somaliland.

The document known as the “Certificate of Non-opposition or Appeal” referring to a case No 192/18 that took place on 04/04/2018 in which Mr. Geele’s GSK Holdings S.A.S supposedly lost and the Bank that was suing him won – La Banque Pour Le Commerce Et L’industrie – Mer Rouge also known as BCIMR. A bank that is rumored to have the first family of Djibouti as major stakeholders.

It is unclear what the next steps are in this case but sources in Somaliland judiciary stated that BCIMR and Djibouti authorities are seeking to shutter Mr. Geele’s businesses in Somaliland and specifically SBI until they settle the dispute. It is unclear if they are seeking this with the current one-page document or are planning to take legal action against Mr. Geele and sue him in Somaliland’s legal system.

It is unclear what the next steps are in this case but sources in Somaliland judiciary stated that BCIMR and Djibouti authorities are seeking to shutter Mr. Geele’s businesses in Somaliland and specifically SBI until they settle the dispute. It is unclear if they are seeking this with the current one-page document or are planning to take legal action against Mr. Geele and sue him in Somaliland’s court system

Currently, the documents sent by Djibouti are with Somaliland’s Appeals Court and may be reviewed by the Chief Justice Aden Haji Ali.

A central question that remains unanswered by Somaliland government is what Djibouti is asking Somaliland? A court’s decision has no validity outside of its sovereign territory. That is the role of international courts and arbitration venues. An arrest warrant from one country is equally invalid unless the two countries have an extradition treaty, and a warrant is submitted through INTERPOL.

It is important to note that Djibouti does not recognize Somaliland as a sovereign country and regards it as part of Somalia.

Legal scholars also point out that while a foreign entity such as BCIMR can open a civil case and sue Mr. Geele in Somaliland, there is an issue of jurisdiction where Somaliland cannot enforce any judgement against BCIMR should they loose.

There is a negligible trade between the two countries since most of Somaliland business men such as Ibrahim Dheere, Hoogsade and others have moved the bulk of their operations to Somaliland. So what makes Djibouti loom so large over Somaliland? The answer is passports.

Foreign Policy magazine referred to Djibouti as a Friendly Little Dictatorship has controlled the means with which most Somaliland politicians and many others travel because it issues them passports, a short-lived passport with a validity period of three years.

According to a member of Somaliland parliament who insisted on anonymity for fear of loosing his passport, the vast majority of members of Somaliland Parliament host a Djibouti passport. He added that as soon as someone is appointed for a position, Djibouti issues them a passport.

This is one of the many side effects of lack of recognition and the need for people to travel for commerce and more often to seek medical attention overseas but also gives a major leverage to a regional economic and strategic rival.

Our efforts to speak to key personnel from Somaliland government and Mr. Geele have been unsuccessful. Our request for clarification from the former Minister of Justice and current Minister of Defense have not been answered.

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.

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