CENTRAL BANK OF SOMALIA
Press Release
CBS/03/05
September 29, 2005
Dr. Mohamud M. Uluso
Governor
Central Bank of Somalia
I would
like to bring to the attention of Somalis, the International
Community and the Media that my removal from the Office of
Governor of the Central Bank of Somalia based on Presidential
Decree No. 001 JS dated September 24, 2005 is unconstitutional
and unlawful in accordance with the Transitional Federal Charter
and the Central Bank Act No. 6 of 19 October 1968. It is a
manifestation of abuse of power. Thus, I remain the legitimate
Governor of the Central Bank of Somalia and seek your support.
Article 15 of
Central Bank Act prescribes that the Governor of the Central
Bank can only be removed from office following the procedures
provided for his appointment. Article 44 of the Transitional
Federal Charter provides the procedures for my appointment. As
required, the Council of Ministers of TFG did not approve my
removal.
In addition,
the allegation of disobeying order from the Prime Minister, Prof
Ali M Gedi is baseless and preposterous. The President of the
Republic, whose responsibility is to ascertain accusations
concerning government officials through due process, did not
offer me the opportunity for rebuttal on the false allegation
made against me. Aside, the Governor of the CB has the
obligation and duty to refuse orders contrary to law from the
Prime Minister.
Furthermore,
the Central Bank Act establishes the term of office of the
Governor in order to protect him from such abuse of power,
illegal removal on baseless accusations, and to let him fulfill
his duty with integrity, independence and accountability. The
claim that an official can be removed by the person who
appointed him has no legal basis and it is erroneous belief. TFG
is subject to the Transitional Federal Charter, the 1960
Constitution and all democratic laws passed before 1969.
There may have
been differences of opinions or expectations on the issues
briefly described in the annex such as printing new currency,
management of government funds, opening of accounts in foreign
countries, role of the Central Bank, opening of Central Bank
Office in Jowhar, and preparation of government budget
I call upon
the international community – especially partners of Somalia to
examine my unconstitutional, unlawful and without due process
removal and to ensure that the Transitional Federal Government (Jowhar)
adheres to the rule of law and good governance practice. It is
also important that the International community publicly
dissociates from any on-going unconstitutional and unlawful
activity and condemns it for the advancement of the Somali
National Reconciliation. Otherwise the international community
will bear responsibility for potentially disastrous
consequences.
I also call
upon the media to take interest in my illegal removal from
office for public interest. A government that disregards the
legal protection afforded to public servants sets a dangerous
precedent and encourages bad governance. Public officials
without legal protection cannot properly serve the country and
ultimately, corruption, poverty and civil war will mar our life.
Finally, I
appeal for the Transitional Federal Parliament as representative
of the Somali people to consider my unconstitutional and
unlawful removal and lack of due process for appropriate
resolution as soon as it convenes.
Annex
1.
The Central Bank has the sole and exclusive right to issue
banknotes and coins. Printing new currency is one of the
critical issues the Bank faces. As Governor I had contacts and
discussions with IMF, World Bank, reputable printing companies –
De Le Rue and Giesecke & Devrient FZE-, experts on currency
reform in post-conflict countries as an advancement preparation.
Under current circumstances, the Bank took the position to
cautiously proceed and not promote printing new currency until
the institutional capacity of the Bank is established. The Bank
also limited the involvement of private businessmen in currency
issuance process for its sensitivity, integrity and security and
advocated for open competition and transparency in the process.
To eliminate recent public anxiety on the flood of fake and
counterfeit banknotes in the country, it is absolutely necessary
that the Leadership of Transitional Federal Government make
public statement on its determination for preventing such event
and taking concrete measures.
2.
I have questioned the role of the Minister of Planning and
International Cooperation, Dr. Abdirizak Jurile and the Director
of Finance and Administration of Prime Minister’s Office, Mr.
Mohamed A. Americo as counterparts for the administration of
“Somali Emergency Budgetary Support Project” that receives and
disburses donor support fund on behalf of TFG, while the
institutions responsible for the management of public resources
had no role in any stage of the process. I have suggested
discussing new procedures for proper resource management in line
with the institutional responsibilities within the TFG. The
current arrangement of financial management is sort of resource
control without accountability, transparency and parliamentary
oversight within the Transitional Federal Institutions. The
Central Bank issued a memorandum outlining the government
procedures on financial aid management and the ability of the
Central Bank to fulfill its responsibilities on behalf of the
government. But the Minister of Planning & International
Cooperation opposed the Bank’s effort to improve the credibility
of the government and sanctioned the current imperfect
arrangement of financial management.
3.
I have also complained that opening of accounts in foreign
countries by Government Institutions is against the law and
pleaded with the President to stop. No action has been taken.
4.
The Central Bank Act requires that the Prime Minister and the
Council of Ministers seek the advice of the Central Bank before
deliberations on certain matters take place. I provided
constructive comments on important government project proposals
taking into account TFG and public interest. Paradoxically the
Minister of Planning and International Cooperation waged a
campaign forcing especially some donors to disregard the
independent role and required advice of the Central Bank.
5. The
Bank is a constitutional autonomous institution with fiduciary
responsibility and works directly with all Transitional Federal
Institutions. Like the Executive Branch, it is accountable to
Parliament. Its legal/business headquarter is Mogadishu. In
consideration of the facts that the Government has no control
over Jowhar, the bank lacks resources and could not function
properly anywhere in Somalia under current arrangement of
financial management, we had to undertake other important tasks
here in Nairobi for 3 months; the PM has been informed about our
work plan in July 2005 and did not object to it.
6.
In fulfillment of the report of Economic recovery, institution
building and resource mobilization committee of the Somalia
National Reconciliation Process, I strongly recommended that the
Ministry of Finance and Ministry of Revenue prepare a one-year
government budget. This budget would spell out goals,
objectives, priorities and financial requirement of the
government. It will also represent a basic document for
government operations, transparency and accountability. Since
first years’ budgets should almost be financed through
international aid, TFG must address the fund raising challenge
in a planned, effective and responsible manner. My
recommendation did not get consideration for a while. Then a
budget document has been approved by the Council of Ministers
without follow up through parliament approval and appeal to
donors. In my judgment this has undermined the functioning and
capacity building of the Transitional Federal Government in
transparent, accountable and lawful way.
Cc:
Hussein Warsame
Minnesota
KKE Architects,
Inc.
Hawars02@smumn.edu
