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Message From The Company      

Puntland: A situational assessment of the farole administration Part(I)

 

By Dr. Qasim Gashaan

 

 

 

Farole came to power on the back of the need for major reforms in Puntland that was way overdue at the time. Puntland was run-down by his predecessors Add Muse and Abdullahi Yusuf. As a Puntlander it pains me to see how the State has once again been dilapidated by the policies of the Farole Administration. Farole has even surpassed the maladministration of his predecessors by wholesale destroying the Economy, Security, and Justice systems at once in Puntland.

 

Recently, the United Nations Monitoring group published a damning report on Farole and some of his Ministers notably ‘Ilkajiir’ and even has termed them as being part of the Piracy menace swiping the Horn of Africa[1]. Puntland elders are also very dissatisfied with the Farole Administration and even the Security Agency the Puntland Intelligence Services (PIS) is on a collision cause with the Farole administration on the illegal appointment and possible replacement of its head. The US is also not pleased with how Puntland is being run and recently over three weeks Farole was in a sort of house arrest at ‘Safari Park Hotel’ in Nairobi together with some of his Ministers. The US government has given them three month probation on a wait and see situation of how the Farole administration behaves on – Piracy and collusion with fundamentalists. This is the situation Puntland is facing today.

 

In a three part series we shall find out what has happened in Puntland objectively. We shall first look at the economic destruction under the watch of Farole.

 

Economic destruction

 

The economy of Puntland was the envy of most countries in the region and even the respected Economist[2] talked of Bossasso port as being more efficiently run and managed than Djibouti or Dar-esalaam and other African ports that was in the year 2000.

 

Initially, when the administration of Farole came into office on the back of a major support from Diaspora Puntlanders on 9th January 2009 many people thought the economy would improve but that was only to become a mirage. Taxes were increased across the board on all Imports, Exports and local taxes on small traders who could hardly afford those Taxes. Small traders who are mostly women with many dependants became the biggest casualty. These people earn less than fifty dollars a month yet this administration had the audacity of taxing them through the nose a fiasco and shame of the Farole Administration that should be exposed in plain language.

 

 

Secondly, amid increases in taxes and a bloated Government with almost hundred Ministers, we thought services will improve but the opposite happened and mismanagement and wastage of state resources became endemic. Huge sums of money were dished to Ministers as a bribe to secure their clan support and government services started deteriorating.

 

Investors started voting with their wallets. Traders, UN organizations, NGOs and companies who used to use the port of Bossasso shifted to Berbera and Djibouti who offered better services, less red-tape and less Taxation.

 

Berbera Port Takes over Trade from Bossasso

 

Though the economy of Somaliland is much smaller than that of Puntland, the Riyale Administration however corrupt and incompetent froze increases on Taxation culminating in many Puntlanders and other Somalis at shifting to Berbera port for their main Imports and Exports.

 

Another issue that has led to a shift in port operations from Bossasso to Berbera has mostly to do with the maltreatment of Ogadenis and other Somalis in Puntland. A particular case in point is the detention and surrender of Somalis who were from the Ogaden Clan to Ethiopian Authorities. The Ethiopians latter released the so called ‘suspects’ after they were found to be innocent business people- an embarrassment to the Legal and Justice System of Puntland if that exists.

 

Unemployment is also very rife in Puntland yet the Farole Administration did nothing about job creation and employment- the unemployment rate is touching north of 45%.Higher Insurance costs  incurred due to Piracy in the region by shipping companies have also been pushed to the Puntland consumer who mostly rely on remittances from the Diaspora. Most commodities have doubled or tripled in prices and if that is not checked properly it might soon lead to massive insecurity in Puntland.

 

On International Law and Treaties the Farole administration even went further into signing dubious deals with the same petroleum companies that confused, cheated, and bribed his predecessors. It is claimed that Farole and his henchmen were given a mere $1million dollars for his signature by Africa Oil and his ‘boys’ who run the cabinet have stashed those funds in Dubai, Malaysia and even Australia.

 

In Australia, they were not that lucky and AUSTRAC[3] followed the money trail when they wanted to buy a house in Melbourne, for a staggering $1.2 Million Australia dollars. They had to abandon that transaction when they could not answer questions from AUSTRAC – a question begs whose money is this? And were did it come from? A year ago these chaps were on the unemployment queues in Australia and the US.

 

The injustice, corruption, and bad management has even affected the goodwill the Diaspora had for Puntland who wanted to invest, and resettle back into Puntland. A missed chance that could have created more jobs and employment for the desperate youth who are now finding themselves into Piracy as a form of career.

 

On the issue of Oil and Gas in Puntland, Amsas Consulting a company that is run by a Somali Stateman and a Puntlander, Dr.Ali Abdullahi from Melbourne, Australia challenged the legality of concessions that were signed by the Adde Administration in December 2007[4]at the Puntland High court. But the court system in Puntland seems to be non-existent and non-functionary possibly what we might term as a Kangaroo Court of sorts. No cases are heard, and no cases of substance has ever been handled by the court systems in Puntland. The case of Amsas Consulting Vs Consort Pty.Ltd, Range Resources and Africa Oil has only received the approval of the elders court but is still mired on the corridors of injustice in Puntland. The issue of illegal oil deals led to the demise of the Adde Administration and even then Farole a defunct Minister of Adde criticised the deal when he commented[5] in an interview he gave in 2007.

 

Amazingly, what has changed the script of Farole from a critic of the Oil deals in 2006-2008 when he was thrown out of his Ministry by Adde Muse.  Now, he seems to be dancing to the tunes of Consort Pty.Ltd, Range Resources, and Africa Oil all are minnow oil companies with no revenues? No track record of Oil Discovery and Production. Why is the Puntland administration hell-bent on dealing with companies that have dubious background?

 

 

Finally, if Farole and some of his Ministers are found guilty of involvement in Piracy and related clandestine activities what should be their fate? should they be impeached for high treason against the state of Puntland and possibly of Somalia. Should they be taken to The Hague for Justice?or should we have a small Kangaroo court in Puntland for that? How should Justice be delivered to them? And who should be the judge? I will leave that to you our readers who can by now make a wise decision on the way forward for Puntland!

 

On the stalemate between the PIS and Farole and its political and security implications will be discussed in our Part II article.

 

 

 

Dr.Qasim Qurac Gashaan is a Somali  Analyst and a Puntlander and can be contacted from QGashaan@gmail.com.

 

 

References

 

 


 

[1] Report of the Monitoring Group on Somalia,10th March 2010(S/2010/91)

 

www.reliefweb.int

 

 

[5] www.somalitalk.com

 

Listen to the interview in Somali below

Translated from Somali: Abdirahman Mohamud Farole who was once the Minister of International Relations in Puntland gave an interview to the BBC indicating his rejection of the deals Adde Muse signed with companies that had no motive of exploring for oil and gas in Puntland and who do not deserve to be negotiated with as a company of any substance.

 

‘Cabdiraxmaan Maxamed Maxamuud Faroole, oo Puntland ka ahaan jirey Wasiirka Xiriirka Caalamiga iyo Qorshaynta, oo Dec 29, 2007 waraysi siiyey Idaacadda wararka u faafisa dalka Ingriiska ee "British Broadcasting Corporation" ayaa mar kale caddeeyey sababtii uu uga baxay maamulka DGPL in ay ahayd khilaaf ka dhashay heshiisyo uu Gen. Cadde Muuse u saxiixay shirkado dadka 'Ku maaweelinaya in ay khayraad soo saarayaan" kuwaas oo "aan u qalmin" in heshiiyo lala galo’

 

 

 

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