By Ahmed Hirsi

When I first read the terms of the deal between Soma Oil and Gas and the Federal Government of Somalia I didn’t know what to say except to raise my eyebrows, because I knew Soma Oil and Gas was formed in 2013 without much track record or enough funds at the time of signing the deal.

Africa is experiencing an economic boom, due to its natural resources and the prices of gold and copper being relatively high, although the oil prices have plummeted. Africa is blessed also with rare metals used in various hightech gadgets and tools such as mobile phones and cruise missiles to name a few, hence, attracting swamps of predatory companies.

Paradoxically most African countries that are rich in oil and other minerals still live in abject poverty coupled with civil wars. The  corrupt leaders of African, who do not have the stop or shame mechanism in their brain and body keep on squandering and stealing from the poor masses.

Most African leaders live under luxurious habits and are seen as the main culprits but the West is also responsible and play a key role in this culture. According to an article published in Politikken a Danish news paper Equatorial Guinea with a population of less than 700,000 people ought be ” Africa’s Kuwait ‘ . Its people should be healthy and live in a prosperous society but the opposite is true.

President Obiang’s shameless corruption has maintained and kept the majority of his people in abject poverty. Africa is littered with dozens of resource rich countries with citizens not benefiting from their natural resources, other examples are South Sudan, Liberia, and Nigeria.

Besides, its well documented that Africa’s oil and mineral wealth has failed to ameliorate prospects for the poor. Corrupt and undemocratic regimes routinely collaborate with predatory investors to fleece the needy and the poor alike.

According to Nicholas Shaxson , author of the book ‘ Treasure Island ‘, a new book on tax havens, warns rightly, that it is necessary to take control of the international financial infrastructure that make corruption possible if we want to stop Africa’s resource curse.

In 2003, it emerged that US oil companies had transferred more than $ 1.5 billion in President Obiang’s name on an account in Washington. Furthermore, according to Global Financial Integrity, an independent American think tank and financial watchdog, estimates that Africa lost more than 30 billion Dollars a year on average from 2000-2008 due to illegal financial transactions.

As a matter of fact this astounding or collosal sum constrains Africa’s development. But the figure also reflects an international quandary, not an African quandary per se. Why would Obiang and others listen to Western Anti-corruption Groups when it is in the West, that is keeping his fortunes ? Luke Patey

Another worth mention aspect is that the extent some UK’s Conservative Party members and associates will go to quench their appetite for African’s resources is well documented. For instance unpublished version of memoir by former SAS officer Simon Mann records Baroness Thatcher’s endorsement of plan to depose Equatorial Guinea’s oil-rich president. I am not against the Conservative Party as such but history hasn’t been kind to them.

So why on earth are we going to believe the former leader of the Conservative party Lord Howard is God sent angel that has good intention to help poor Somalis?

It’s beyond a shadow of a doubt that Somalia needs Foreign Direct Investment- FDI, but the terms of any deals between the Federal Government of Somalia and foreign investors must be approved by the Federal Parliament in conjunction with Regional States if the deal/deals fall under the jurisdiction of/ or area administered by a regional entity.

David Shinn whom I had interviewed recently stated “I don’t know the details of the agreements reached between foreign energy companies and Somali authorities. My impression is that some of these deals have been signed with regional authorities. This raises serious questions about their validity. Even those signed with the federal government are highly suspect because of the manner in which they were negotiated. Once there is a functional national government, all of these agreements will need to be reviewed.”

In conclusion the Somali Parliament should review all oil and other deals entered with foreign investors. The international Community should ignore shrewd and powerful former politicians and lobbyists that have connections and friends among the members of the Security Council. Soma Oil and Gas deal is indefensible and morally wrong no lobbying or arm twisting will do them any good.

The UN Monitoring Group’s recommendations shouldn’t be undermined by some members of the Security Council if corruption has to be curbed in Somalia or elsewhere. Soma Oil and Gas illustrates the dangers posed to fragile states by big boys that really can pull some strings.

Ahmed Hirsi
Freelance Writer
E.mail: Ahmed.hirsi@yahoo.com