In brief
- On 13 September 2018, Horn Diplomat reported that the Islamic Development Bank suspended the Dryland Development Project in Somalia over accusations of corruption and mismanagement.
- The report cites an IsDB audit and letter, an internal government report, and statements from officials and the accused’s lawyer.
- The report does not establish what happened after that date, including whether the project resumed or the case was resolved.
On 13 September 2018, Horn Diplomat reported that the Islamic Development Bank (IsDB) suspended the Dryland Development Project in Somalia over accusations of corruption and mismanagement. The report, sourced to VOA, does not establish what has happened since that date; no primary IsDB suspension notice or audit document is provided, and there is no information on the project after 13 September 2018.
The project, which started in October 2016, was being conducted in three unnamed rural villages to help pastoralists build drought resilience, access health and education services, and develop livestock and crops. It was set to cost $5 million overall. Since February 2017, the IsDB had transferred about $1.5 million to an account at Somalia's central bank in three installments, according to the report.
An IsDB audit found that a progress report by project coordinator Abdishakur Aden Mohamud contained "no substantial information" on achievements, according to the report. A letter by IsDB written on July 5 and seen by VOA Somali's Investigative Dossier program said there was no supporting evidence for claims in the report. The letter stated the audit raised concerns including lack of a coherent payment system and overpayments to a supplier. The IsDB said that during the audit the project coordinator made cash and check withdrawals "not in line with the fiduciary and financial management system." IsDB asked the Somali federal government to investigate and take appropriate actions, and froze the account.
The Somali government says project coordinator Aden was arrested August 1. Deputy Attorney General Jamal Mohamed Ahmed said he is confident the government has a strong case against Aden, describing it as a large corruption case. Aden did not win his job competitively and started work in October 2016 without a proper contract, earning $6,000 a month, according to an internal government report seen by Investigative Dossier. Former finance minister Mohamed Aden Fargeti confirmed Aden had a "letter of appointment" instead of a proper contract. The internal report details that the project spent more than $505,000 on salaries of 19 staff members, exceeding the $407,743 spent on the project during its entire first year. The report could not find documentation for nearly $100,000 reported spent on office supplies. It suggests only about $400,000 of the first $1 million allocated has been spent on needy people, with no evidence it was spent correctly on pastoralists.
Aden's lawyer Ali Halane denies the allegations, saying the government relies on five project employees as witnesses and that withdrawals were countersigned by the Ministry of Finance. A court in Mogadishu refused to release Aden on bail.
IsDB set conditions for resumption: financial management training for project staff and appointment of the coordinator on a competitive basis. IsDB said the project will resume as soon as the Somali government accepts the conditions, expected within a couple of months. The report does not state whether those conditions were accepted or whether the project resumed.
Frequently asked questions
What mismanagement was alleged in the Dryland Development Project?
The IsDB audit and letter, as reported by Horn Diplomat, cited lack of a coherent payment system, overpayments to a supplier, cash and check withdrawals not in line with fiduciary systems, and a progress report with no substantial information.
What is the status of disbursements and works?
As of 13 September 2018, the IsDB had transferred about $1.5 million and frozen the account. The project was suspended. No information is available on activities after that date.
What does this mean for other IsDB projects in Somalia?
The report does not address other IsDB projects. It only describes the suspension of the Dryland Development Project.