4/27/2024
Today from Hiiraan Online:  _
advertisements
Tensions rise between Somali federal government and Puntland over debt relief responsibility


Wednesday May 10, 2023

 

Mogadishu (HOL) - Somali Prime Minister Hamsa Abdi Barre has accused Puntland regional state President Said Abdullahi Deni of being responsible for any failures in Somalia's debt relief program.

At a Mogadishu event on Monday, PM Hamsa stressed that the federal government would not accept failure in the lengthy debt forgiveness process. He called on President Deni not to politicize the process and addressed Puntland affairs openly for the first time.

advertisements
In March, the International Monetary Fund (IMF) announced a staff-level agreement for the fifth review of Somalia's Extended Credit Facility (ECF) arrangement. Somalia became eligible for debt relief under the HIPC Initiative in March 2020, significantly reducing its external debt and creating fiscal space for investment in development priorities.

Puntland plans to hold statewide direct local elections on May 24, following a pilot election in December. However, prominent politicians, including former Puntland Presidents Abdirahman Faroole and Abduwali Gaas, are boycotting the elections, citing mismanagement.

Prime Minister Hamza also emphasized that the federal government would not accept an election that could harm Puntland. He suggested that people should have free elections, but if it leads to Puntland's destruction, it should be done in an agreed-upon manner.

Puntland President Deni warned the federal government against interfering in Puntland, particularly its implemented democracy. Speaking at a political rally in Galkacyo on Tuesday, Deni said that the first response to the federal government would be the people voting on May 25, 2023.

President Hassan Sheikh Mohamud criticized President Deni during a Friday sermon at Villa Somalia Mosque, urging Puntland's leadership to avoid actions that might undermine the region's stability.


In response, Puntland Minister of Planning Mohamed Said Faroole stated that none of the projects funded by loans taken in Somalia's name had been implemented in Puntland. Faroole claimed the loans were used for projects in Mogadishu and Hargeisa and that the current Somali government had misused some of the loaned money. He added that Puntland did not accept a debt they were unaware of and had not been consulted on.

Faroole argued that the federal government aims to use the $2 billion in debts to corrupt and destroy the country. In January, President Deni severed ties with Somalia's federal government, announcing that Puntland would function autonomously until a constitution was drafted and a referendum held.



 





Click here