The announcement was made by Farhan Jimale, the spokesman of the Office of the Prime Minister, during a mini reshuffle on Saturday night, appointing Bihi Iman Egeh as the new finance minister.

The replacement came after a consultation with President Hassan Sheikh Mohamud, the spokesman added.

The sudden sacking of Minister Nur has left many Somalis in shock, especially as it came a day after he was compelled to retract his official statement suspending Accountant General Mohamed Abdirahman Anas and the Finance Ministry’s Director for Revenue, Feisal Mohamed Hashi.

In his initial letter, Minister Nur accused the two officials of various misconduct, including actions detrimental to national interests, obstruction of the ministry’s administration, deliberate payment delays, unwarranted salary withholding, and hindrance to accessing the Somalia Financial Management Information System (SFMIS), a World Bank and IMF-supported financial reporting system.

‘Stern warning’

However, in an unexpected turn of events, Minister Nur reversed his decision on Friday, stating that the suspensions were lifted but emphasizing that the administrative charges remained, serving as a stern warning for future conduct.

Official sources have revealed that President Mohamud exerted pressure on Minister Nur to rescind the suspensions, as the two officials involved are closely associated with the president.

Both Mohamed Abdirahman Anas and Feisal Mohamed Hashi have longstanding connections to President Mohamud’s political party. Anas, in particular, has been a longtime friend and party member, having come from SIMAD University, which was co-owned by President Mohamud before he joined the Premier Bank, another institution affiliated with the president. Hashi, the Director of Revenue, also hails from SIMAD University and has been an active member of President Mohamud’s political party.

The sacked officials are regarded as highly influential figures in the government’s financial sector, with one insider stating that they hold significant responsibility for releasing funds, including kickbacks for the president and his family.

Don’t touch those connected to the big fish

The abrupt dismissal of these powerful individuals, who are connected to influential figures within the government, has raised concerns about the extent of corruption within Somalia’s political landscape.

Political analyst Ahmed Ali has criticized the sacking, suggesting that Minister Nur should not have dared to dismiss these influential individuals due to their close ties to powerful figures within the government, including President Mohamud.

“For your own survival, you don’t touch those connected to the big fish,” he said.

Meanwhile, MP Ayub Ismail of the Somali Federal Parliament has described the situation as a serious matter that affects the entire government, emphasizing the limited power of both the prime minister and the finance minister to fulfill their constitutional duties.

“Where the head of government does not have any power to fulfill his constitutional duties, one can imagine how limited the power of the minister is. Therefore, this move is not surprising,” MP Ismail, who also comes from the region as minister Nur, said.

In response to his removal from office, Minister Nur expressed his accomplishments during his tenure, highlighting that he ensured timely payment of government employees’ salaries and attempted to maintain a non-political approach to financial reforms.

“I tried to keep politics out of the financial reform program. I have tried to maintain the institutional system of the Ministry of Finance so that it can efficiently fulfill its mandate, so that we can effectively serve our people,” he wrote on his Facebook.

However, the events surrounding his dismissal have further exposed the widespread corruption within the Somali government. Many citizens have begun to point fingers at President Hassan Sheikh Mohamud, accusing him of granting economic benefits to his family members, relatives, and friends while nearly half the country’s population still need humanitarian assistance, including 230,000 at serious risk of starvation.

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Mohamed Abdirahman Dhabancad, the Minister of Finance for Puntland, has accused the federal government in Mogadishu of hijacking the process, leading Puntland to withdraw its participation.

“Puntland, the only region with a functional governance system within the federal government of Somalia, has walked out of the entire debt relief process. We are not part of it,” declared Dhabancad.

The Minister disputed a recent statement made by the Minister of Finance at the federal level, Dr. Elmi Nur, who claimed that Puntland was in agreement with Mogadishu regarding the debt relief process. “We are not satisfied with how the process has been managed. The regulations unilaterally passed by the Mogadishu-based Parliament were not endorsed by Puntland as a federal member state. Therefore, any decision reached concerning the debt relief will not be valid,” stated Dhabancad.

Minister Dhabancad also emphasized that the debt relief process in Somalia cannot proceed unless the country resolves its political differences. Puntland also cited severe corruption within President Hassan Sheikh Mohamud’s cabinet as another reason for distancing themselves from the authorities in Mogadishu.

Although Somalia is already in debt distress, it cannot access full debt relief from the International Monetary Fund (IMF) until it demonstrates commitment to structural reforms that ensure effective utilization of public resources for the benefit of all Somali people and efforts to promote stronger economic growth leading to more job opportunities.

On March 25, 2020, Somalia achieved the HIPC Decision Point, allowing partial settlement of its debt, most of which had accumulated before the civil war in 1991 and remained unpaid for three decades.

In October last year, the IMF announced a staff-level agreement with Somalia, enabling the release of approximately $10 million to the East African nation, subject to approval by the IMF board.

However, numerous critical challenges still persist. The country grapples with rampant corruption in the public sector, lack of transparency, and a deficient governance system, hindering efforts to combat these issues. Furthermore, growing divisions between federal authorities in Mogadishu and federal member states, along with clan-based clashes erupting in various regions, pose risks of plunging the country back into chaos.

Economic and financial experts express concerns about these challenges potentially reversing the hard-earned gains made by the poverty-stricken and heavily indebted nation.

Somalia’s external debt is estimated to exceed $5 billion, with the United States being the largest creditor, owed $1 billion. Countries eligible for the Heavily Indebted Poor Countries (HIPC) Initiative by the IMF and World Bank must commit to economic and financial reforms, poverty reduction, and political stability.

Transparency International, a non-profit organization, ranks Somalia as one of the most corrupt countries globally.

In its 2022 Corruptions Perceptions Index, Transparency International placed Somalia at the bottom, highlighting President Hassan Sheikh Mohamud’s dissolution of two vital anti-corruption bodies through a decree.

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