MOGADISHU — In a shocking turn of events, three top officials of the Central Bank of Somalia have resigned from their positions on Sunday, citing increasing interference by President Hassan Sheikh Mohamud.
The departure of three out of the bank’s overall five-member board team has sent ripples through the financial sector, raising concerns over the independence and transparency of the country’s financial institutions.
The three resigned Board Members are Dr. Abdisamad Nur Loyan, Dr. Sakhawudin Mustapha Mohamed and Dr. Osman Salad Gabeyre, all of whom played crucial roles in the bank’s decision-making process. Their decision to step down was sent to the President Mohamud, in which they expressed their dissatisfaction with the President’s direct involvement in the bank’s affairs, rendering their roles virtually non-existent.
One of the major points of contention was the issue of procurement. The officials alleged that Governor’s interference in the procurement process compromised the bank’s independence and raised concerns over a lack of proper regulations, especially regarding the handling of contracts.
Since the re-election of President Mohamud, evidence has emerged indicating that the Somali government has engaged in unauthorized leases of prime land properties, some of which were originally owned by the Central Bank in Mogadishu. The sales have been conducted without proper procurement process or any public disclosure, casting doubt on the legitimacy and transparency of the transactions.
Adding fuel to the fire was a recent letter from President Mohamud, which appeared to dictate the board members’ handling of their mandated tasks, going as far as barring them from participating in crucial meetings, internal discussions and even banning virtual gatherings on platforms like Zoom. That highly controlling move only served to further exacerbate their frustration, ultimately culminating in their joint decision to resign.
The Board of Directors also voiced their strong opposition to the President’s proposal to extend the term of the current Governor of the Central Bank by an additional four years, a move which they said raised doubts about the President’s commitment to ensuring a fair and competitive selection process for top positions in the bank.
Moreover, the officials voiced their strong disapproval regarding the President Mohamud’s decision to empower his economic team, due to their close alliance with him as a factor that compromised the bank’s overall operations. They accused the presidential team of directly interfering in the bank’s day-to-day affairs, raising their concerns about the institution’s independence and impartiality.
According to them, the nepotistic approach undermined the credibility and effectiveness of the bank’s economic policies. The Central Bank has been widely criticized for the nation’s economic stagnation, with allegations that it has been utilized as a slush fund for Villa Somalia.
The lack of accountability regarding the withdrawal of funds for travel expenses by the Presidency has raised serious concerns and added to the mounting concerns by the international partners who have warned that the practice threatens to undo the recent progress made in improving the country’s financial system as well as the debt relief efforts.
The Board Members’ frustration over the overall economic state of the nation was evident in their resignation statement, underscoring the urgent need for reform and independent decision-making within the financial institutions.
The departure of these key Board Members has created a void in the leadership of the Central Bank, raising concerns among stakeholders and international observers about the future of the country’s financial stability and economic growth.
It’s worth noting that just two weeks ago, Dr. Elmi Mohamud Nur, the Minister of Finance, took the decisive action of suspending two officials at the Ministry of Finance for their alleged involvement in mismanagement and corruption. However, he faced a surprising push back from the president who compelled him to rescind their dismissal, only to be fired himself from his position a few hours later.
Mr. Nur’s sacking has however drawn significant public attention and triggered strong backlash, with many say that it has demonstrated that President Mohamud’s anti-graft rhetoric is nothing more than empty words, given that his family members and allied politicians continue to evade scrutiny for their involvement in dubious dealings and enjoy complete immunity.
President Mohamud’s office has not yet responded to the allegations made by the resigned officials. However, the Governor of the Central Bank is set to issue statement regarding the resignation of these key figures.
Facebook Comments