Category: ministry of finance

EDITORIAL: WHY PUNTLAND STATE HAS FALLEN BACK

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July 3, 2019
Successive leaders and administrations of Puntland have been losing vision and strategic planning for both Puntland and Somalia. In the absence of think tank, thought leaders and any attempts to study Puntland core systemic problems, had led to a situation of political pararlysis.
Over the years, existing local research centres, international and local Non-state Actors, NSA or NGOs as well as the civil society groups here and throughout Somalia, had been taught into and are all bent on engaging in international donor-friendly programs and projects. They don’t want to rock the boat, while at State level, amid corruption, lack of capacity for resources mobilization, expansion of revenue generation and having chronic bottle-neck budgeting issues of merely meeting the minimum State obligations, this political paralysis had been taking over the entire mandates of all Puntland Administrations – Administrations that even couldn’t figure out introducing pay-parking city regulations that can pay off the entire monthly salaries of all city and state employees comfortably, thus to be able to ear-mark and re-allocate the rest of the state revenue to socio-economic sectors and infrastructure projects. This is just an example of how to expand revenue generation. There are many other ways to fill up the government coffers by providing much needed services to the residents, in exchange.
In Puntland, like the rest of Somalia, there is no much planning for what to do next next day. It is hard to complete a long journey without pre-planning. It is equally impossible to reach at destination you don’t know, trouble-free.
This is why the State of Puntland has lost its way during its historic journey as the main Pillar of creating The New Somalia.

PUNTLAND PRESIDENT DENI’S FIRST BABY STEPS

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June 30, 2019

Puntland President, Said Abdullahi Deni, has finally started his first baby steps in governing PUNTLAND State of Somalia, after disappointing several months in office since he got elected in January 2019.

It is was a stiff learning curve for him to understand the extent of mess left by his predecessor and to figure out the complexity of Puntland sub-clan political culture that has been pulling down the State since its establishment in 1998.
To start this journey, he, after a while, had paid a working visit to two important PUNTLAND cities, Port City of Bosaso, the backbone of PUNTLAND economy, and Galkayo, the security bulwark of the State. Now, it was time to address an annoying matter in Puntland, the Dubai P&O – Bosaso Port contract. He had paid a quick private visit to the UAE to takle with the issue. This secret business contract is still surrounded by suspicion and doubt about its contents and contractual conditions. President Deni still has to clear that cloud of mistrust in this deal.
Among the pressing issues of PUNTLAND includes infrastructure, new ports and road network. PUNTLAND is not land-locked as it is blessed with the longest coastline in Africa, being washed by waters of both the Indian Ocean and the Red Sea. But, the State of Puntland has become air-locked with no reliable air-transport available despite modernization of its nternational airports in Garowe and Bosaso. That is because Puntland business community lacks behind all the rest of Somalia in their business outlook, entrepreneurship and collective pulling of finance to initiate and move major projects.
President Deni went on a quick travel, perhaps unprepared private visit, to Chinese firms in Peking. The visit and symbolic signing ceremonies were ill-advised to advertise, for the Federal Government and opponents of Puntland got noticed of DENI’S move in China, and according to informed source, they are trying to kill it. Nowadays, everything has to go through Mogadishu in the same way the world financial transactions go via New York City banking Swift codes. Welcome to Farmaajo-Khayre one city-state solution to all Somalia’s problems. Enroute to China via Addis Addis, President Deni managed to secure Fly Ethiopian Airlines deal to relieve Puntland passengers of the burden of driving all the way to and from Hargeisa of Somaliland. People see this here as one big baby step by President Deni. It is a welcome first step move.
Now, President Deni starts other baby steps like appointment of several regional and security officials. But, Puntland public is waiting for real reforms of government bureaucracy, fanance and security sectors, in particular, and creation of independent anti-corruption watch-dogs and legal instruments, and immediate movement towards democratization and multiparty elections. And, by the way, Deni re-election is only possible through multiparty election, if he does a good job in this Puntland Mandate.

PUNTLAND’S ACHEELS HEELS

Yes, an imperative reform in Puntland Administration is obvious to all and urgently needed. But, where do we start?

The sectors that had become the Achilles Heels of the State of Puntland are:
  1. Finance sector
  2. Security sector
Fix the two sectors, and Puntland would leap foward fast. These two sectors constitute half of Puntland’s entire problems.
Take first, Puntland Ministry of Finance where the management and personnel are on the same jobs for twenty years with 19th century rudimentary knowledge of financial management and that compoundedly streghtened by their chronic resistance to change, upgrading and reform. It is not an exaggeration – I worked with them as Puntland Chief of Staff at State Presidency during the first three years of Puntland foundation. How did they stay that long each one on the same job? That is their most guarded secret. What is it? The Ministry’s Top Management Team had developed and fine-tuned special skills to make sure that every incoming Puntland President and the new Minister of Finance are happy by providing them with unchecked and unaccounted for access to personal funds. But, if that is an open secret, why didn’t Puntland successive regimes do something about it? Good question! Have you heard the Somali word “Madax-ka-nool referring to Puntland governance?” Yes, you guessed – the President is everything in Puntland. He is the country’s minister of finance and cashier-general at same time. He can buy everybody, including the members of the House of Representatives (the Parliament). Then who would check the powers of the President? You tell me. With the financial muscle of the Ministry of Finance he owns the country and its people. You would say that is an exaggeration. You are free to carry out your own enquiries and independent investigations. But, don’t forget to share your findings with me.
But, that is not all. The top management of Puntland Ministry of Finance is the main obstacle and reason why international agencies and world financial institutions are unable to assist Puntland due to Ministry’s lack of transparency and financial accountability. The Ministry keeps secret even Puntland real revenue and expenses. This has created a situation where world community doesn’t know not only how to help Puntland in development projects, budget supplements and personnel capacity-building, but also how to work with the authorities. Puntland books are closed and they are Ministry’s Top Secrets.
Reform immediately that Ministry, and people of Puntland are half free.
Take Security Sector second, and you would discover the hard facts that nobody knows, even approximately, the number of men and women working in or attached to that sector, forget about their training, quality, incapacitation, mortality or even whether the names in ghost lists exist, or ever existed. How do you allocate resources, wages, pay etc? How do organizations in the security sector could assist Puntland improve its security needs? Yes, it is easy to blame others for your failures? But abive all, how do you defend your country when your lists of forces are ghost soldiers? That is why you hear calls for clan militia support whenever Puntland security is threatened.

These are the two critical sectors that require an urgent and radical reform, but the problems described above extend to other sectors and state departments as well.

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(Image credit: Dabaraani Media)