Somaliland is under attack from Global scam-mongers and fraudulent pseudo investors.

Somaliland is under attack from scam-monger and fraudulent pseudo investors. We should formulate Investor Screening & Approval Due Diligence Policy before it’s too late.

Ever since Somaliland has declared its independence, scores of false investors have been trying to scam money out of the people savings, and also plundering public resources.

Nonetheless, respective governments in Somaliland have failed and continue to fail taking corrective measures aimed at putting an end to this shameful and humiliating occurrences – we have become the laughingstock in the Global Business Community.  The government is also blamed for lack of information, and transparency in the face of the operations of these dangerous potential looters. This has created an information vacuum which is normally filled by speculations and rumor mongers.

In April 2019, a company by the name of Singapore New Silk Company has commenced talks with the Somaliland government regarding investments involving construction of a refinery at Berbera. They talked about spending millions of dollars coupled with the training and subsequently recruiting about 400 young graduates.

However, only minutes after listening to this news, I conducted a quick background check on their capabilities and it turned they were nonexistent. The only evidence of their being on the global map was an address on a High street in Singapore – they had all the hallmarks of professional scammers. Based in my longstanding Corporate banking, I am fully aware that people of this caliber are looking for some agreement or MOU which they intend to sell to potential investors or engage in some illegal operations.

Once again, only last week, a reportedly Chinese company in the name Africa Agricultural Development Group has proposed to grow caster beans in the plain of Tog Wajaaleh. A large delegation led by the Minister of Agriculture has accompanied the Chinese potential investor. Once they reached the Wajaale farming site it was declared that the Chinese will be given some 2,000 acres of farmland where they will grow Caster Beans.

Out of curiosity, I have googled the uses of Caster oil and beans. I shocked to learn that whilst castor oil is used to treat constipation etc., it is also the source of high toxic and often military-grade poisonous material called Ricin.

More Seriously, the following extract from world-class Research shows that growing caster beans could be disastrously dangerous to the local community and the seeds could spread across the Country in matter of few years:

QUOTE

The leaves and especially the seeds of the plant contain the powerful toxin ricin and for that reason it is one of the most poisonous plants in the world: if you eat a half-dozen seeds and do not get medical treatment (which, obviously, I do not recommend) it can be fatal. Growing the plant as an ornamental or a crop is not illegal, but extracting and concentrating ricin from it is, as you would in effect be making a potent biological weapon (obviously, I do not recommend that, either).

UNQUOTE

To sum it up, it is obvious there is total lack of controls, absence of accountability and coordination regarding approval of large-scale investment opportunities. It is also obvious that Somaliland has become the target of international scam and fraudulent investors.

In this context, I would recommend the adoption of the following Policies and Procedures, which I believe, will discourage any scammer and also safeguard the national resources from International and Local Criminal Groups.

1. The Ministry of Investment should have the SOLE mandate to approve or disapprove any application for any potential foreign as well as local investors above certain pre-agreed threshold.
2. The Ministry of Investment should formulate Investor Screening & Approval Due Diligence Policy. This document should be on the table as soon as possible and should be made public and well-distributed.
3. Every potential investor should go through at least the following validation and background checks before they are allowed to discuss business opportunities with any Public or Private Organization.

A) Legal and Security Background check via the Secret Services, MOI and related authorities.

B) Full Analysis of the investor’s business and financial capabilities. This process should handle by qualified and experienced Chartered Accountants and or Corporate Bankers etc.
B) Economic & Technical Viability Study: This should be handled by qualified and experienced economists or products experts who should ascertain whether the proposed projects/services will actually benefit the socioeconomic wellbeing of the population.

Only after this process has been fully completed, should the Ministry of Investment give any potential large-scale investor the greenlight is start discussions with the concerned ministries, other government bodies, private companies and communities.

If we fail to put in place struct policy and procedures aimed at curbing the scores of criminal outside, knocking our doors, Somaliland will become prey to criminals and fraudulent scammers.

By:

Hassan Abdi Yousuf

Geopolitical Analyst

Hargeisa , Somaliland