MOGADISHU (Somaliguardian) – Somalia’s federal government has diverted World Bank funds allocated to regional administrations as part of a political deal that allows three regional presidents to remain in office indefinitely, Caasimada Online news website reported on Monday.
Under a recent agreement, President Hassan Sheikh Mohamud is said to have allowed the leaders of Hirshabelle, South West State and Galmudug to stay in power without holding elections in their regions. In return, each state allegedly transferred about $1m from World Bank funds intended for their regional budgets to the federal government, sources said.
The talks initially stalled after the three regional leaders proposed contributing $500,000 each. However, following pressure from the federal leadership, the amount was later doubled to $1m per state, bringing the total transferred to $3m.
The alleged arrangement comes at a time of mounting financial strain for Somalia’s federal government. A number of international partners, including the United States, have recently reduced or suspended budgetary and other financial support to Mogadishu, worsening an already fragile fiscal situation.
Soon after the federal government received the funds, President Mohamud visited the headquarters of the National Electoral Commission and instructed officials to boost preparations for local council elections in Mogadishu, saying that funding constraints had been resolved.
The developments have raised concerns among observers that the alleged diversion of funds could undermine Somalia’s economic reform programme, which is closely monitored by the World Bank and the International Monetary Fund. Any breach of agreed financial safeguards could risk the suspension of key budgetary support and subsidies provided by the two institutions.
Neither the Somali federal government nor the World Bank has publicly commented on the reports.
Somalia has been working to strengthen public financial management and governance as part of wider reforms aimed at securing long-term international support and debt relief. Critics warn that any misuse of donor funds could damage confidence in those reforms and further strain relations with international partners.
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