Dr_Osman Posted March 8, 2012 PUNTLAND OIL: We will not fall into the mistakes made by others, said Farah Ali Jama, Puntland Minister of Finance March 8, 2012 9:31 am GMT - Written by Yusuf - Edited by Yusuf NAIROBI, 8 March 2012 (IRIN) – The recent discovery of oil deposits in the self-declared autonomous region of Puntland, northeastern Somalia, could improve its population’s livelihoods as long as it is handled properly, officials and locals told IRIN. “The discovery of a valuable natural resource anywhere in Somalia is welcome and it should benefit all the people of Somalia. The finding of adequate oil in Puntland would change the lives of the people of Somalia for the better provided it was managed properly and Somali authorities learned from the experiences of other African countries where oil was found. Oil has the potential of bringing corruption and curses to a country if not handled well,” said Mohamed Abshir Waldo, an independent analyst and Somalia expert. Farah Ali Jama, Puntland Minister of Finance, said he was confident that any money from the oil would be handled properly and improve the lives of all Somalis. “I am 100 percent confident that this resource will improve people’s livelihoods,” he said, adding, “we will not fall into the mistakes made by others.” Jama said any funds from the oil find, which is expected to come on-stream soon, “will not fall into the pockets of any individual or group. This is for all of the Somali people wherever they may be.” However, there is as yet no legal framework in place for who will collect the money. “We are working on a legal framework for the relationship between the TFG [Transitional Federal Government] and the Puntland government on who will do what,” said the minister. He said the draft constitution, which is expected to be completed before August 2012, “will make it clear how resources will be divided”. Until then, “we [Puntland] will make sure that whatever money comes out of this will be handled transparently and every penny accounted for”. Great expectations Farah Hassan Atosh, a traditional elder and resident of Armo town, 28km northwest of the oil field, said: “We are expecting great things. It will change our lives for the better. Insh’Allah [God willing] we will never depend on others to give us food again.” He said that change was already happening in Armo town (population 25,000). “You can see many more people arriving every day and it can only add to the development of the town.” Drilling began in January 2012, and locals support the project, he said. “We not only support it, we will defend it from anyone who wants to stop it.” He said the project was also contributing to peace-building in the area. “They are employing many young men who would have been idle and easy prey for recruitment into militias.” Benefits Awad Husein Ali, the former district commissioner of Armo, told IRIN that residents were already feeling some of the benefits. “Businesses are starting in the area. We have a construction boom going, with hotels and big houses being built to accommodate the [oil] company employees and contractors.”Oil has the potential of bringing corruption and curses to a country if not handled well Ali said that even the Somali shilling had started to appreciate against the dollar. “A few months ago we were exchanging US$1 for 32,000 Somali shillings. Today it is 23,000 Somali shillings. Who knows, our shilling may become like the Kuwaiti Dinar!” New infrastructure projects are expected to follow the oil, he said. “They are already putting in roads and hopefully, schools and hospitals will follow soon.” Reality check However, a regional analyst, who requested anonymity, told IRIN that although the Puntland administration had so far said all the right things, “it does not mean that all will be well when the money starts flowing”. He also questioned if Somalis had the expertise to deal with an international oil company. “It is not even clear how much the Somalis will get and how much the oil company will get. There needs to be transparency on how much money the company will get. Is it 50 percent, 20 percent or more?” He warned that, given the TFG’s poor record on handling finances, there had to be “a way to monitor how any money collected is spent. There should be a stringent legal framework in place to make sure that the money goes to the people of Somalia and not to individuals’ pockets.” Source: IRIN Quote Share this post Link to post Share on other sites
kingofkings Posted March 8, 2012 like PL government is going to give its oil revenues that easily. god i love the mindset of some people. i say once PL starts producing oil, PL should entertain the idea of being ....... Quote Share this post Link to post Share on other sites
uchi Posted March 8, 2012 Faroole's admin aren't thiefs~ by the way who is this regional analyst who doesn't even know the sharing agreement. Please~ Quote Share this post Link to post Share on other sites
kingofkings Posted March 8, 2012 Earlier today, IRIN, an independent news service of the United Nations, recorded interviews with the people of Puntland, ranging from high-ranking government ministers to diapora-based analysts and ordinary civilians in the region on the subject of a recent oil discovery in the region. Opinions varied from person to person, but remained relatively positive. Independent analyst Mohamed Abshir Waldo had this say on the subject. The discovery of a valuable natural resource anywhere in Somalia is welcome and it should benefit all the people of Somalia. The finding of adequate oil in Puntland would change the lives of the people of Somalia for the better provided it was managed properly and Somali authorities learned from the experiences of other African countries where oil was found. Oil has the potential of bringing corruption and curses to a country if not handled well. Farrah Ali Jama, the Puntland Minister of Finance stated the following when asked about how funds would be handled by his administration. I am 100% confident that this resource will improve people’s livelihoods. We will not fall into the mistakes made by others. The funds will not fall into the pockets of any individual or group. This is for all of the Somali people wherever they may be. We are working on a legal framework for the relationship between the Transitional Federal Government and the Puntland government on who will do what. The draft constitution will make it clear how resources will be divided. We will make sure that whatever money comes out of this will be handled transparently and every penny accounted for. Jama is a highly competent minister and is an integral member of Puntland president Faroole’s ‘technocratic’ cabinet. On a more telling note, the agency also spoke to Farrah Hassan Atosh, a traditional elder in the town of Armo, a mere 28 km from the Dharoor valley oil field. We are expecting great things. It will change our lives for the better. Insh’Allah, we will never depend on others to give us food again. You can see many more people arriving every day and it can only add to the development of the town. We not only support it, we will defend it from anyone who wants to stop it. They are employing many young men who would have been idle and easy prey for recruitment into militias. Atosh, as with many locals in the region, is extremely defensive of oil exploration and believes his community has a lot to gain, and nothing to lose. The former district commissioner of Atosh’s hometown, Awad Hussein Ali, had this to add. Businesses are starting in the area. We have a construction boom going, with hotels and big houses being built to accommodate the company employees and contractors. A few months ago we were exchanging US$1 for 32,000 Somali shillings. Today it is 23,000 Somali shillings. Who knows, our shilling may become like the Kuwaiti Dinar! They are already putting in roads and hopefully, schools and hospitals will follow soon. The optimism in the region is to be expected, because while oil itself has yet to bring in actual dollars for the local economy or the people directly, the exploration and energy surrounding the project has brought many tangible benefits to the region, especially the financial sector. Not long ago, it was renegade pirates bringing in cash injection to the region, but they have been replaced by a more proper financial steroid, and a hugely appreciated one at that. DissidentNation Quote Share this post Link to post Share on other sites
General Duke Posted March 8, 2012 A safe pair of hands, well done to the Minister. Quote Share this post Link to post Share on other sites
AfricaOwn Posted March 8, 2012 They should 100% of the oil revenues me thinks. Other regions in the future should do that as well. This policy keeps things in perspective as clan is everything. Quote Share this post Link to post Share on other sites
General Duke Posted March 8, 2012 What Puntland does with it's Oil is none of your secessionist business. Quote Share this post Link to post Share on other sites
