Somalia's Missing Millions of $$ Overseas

[AbdiWahab252]

Waryaa,


Excellent idea but a longer term project. What about selling the cellular, television spectrum ? That can net a cool 100 million.


As for if this crew will be different than its predecessors, time will tell.

abt the spectrum, I'd say not now. Mogadishu telecom companies are more powerful thn the gov and they've spent a lot of money on infrastructure. Besides, they have voices in the parliament. Too risky

Waryaa,

I doubt it. AS was taxing them large sums and they paid. Between Ex-Barakat (golis/telsom/hormood), nationlink, olympic, they can contribute a cool $30-40 million in taxes. All this infrastructure they built on, was it their's ? Rehabilitating a stadium or providing generators is a fraction of a penny in expenditure.
They enjoyed a tax free status for a long time.

If I was the Minister of Finance, raising $130 million for the budget wouldn't be hard at all provided the President had my back.

How much do you think Ex-Barakat grosses each year ? What about the Hawalas: Dahabshiil, Hodan Global, Amal, etc ? Billions in revenue.


Remember, financial independence allows the government to pursue an independent agenda and provide the necessary services required for stability and growth. AMISOM will not be there forever,

[Methylamine]

I should pursue a career in the Somali government, lots of money to be made

[waryaa]

awahab, I heard the largest carrier, Hormud reported 48 million in revenues in 2010 - not much. Energy is very expensive, salary, security, maintenance, purchases, dividend... the list goes on and on. Olympic is in the negative. Do you think these companies can pay much in taxes? I dnt think so. They will also fight back by any means necessary if the gov tries to auction the spectrum and allow foreign companies to compete.

lol@baris

[AbdiWahab252]

Waryaa,

Let them fight. It seems that no one is thinking longterm. This business of begging foreigners to foot bills for the most basic government services is stupid and full of folly. How do you ask them to pay for your security forces and still want to pose as a legitimate government ? Hormood's telephone revenues are understated but lets assume its $48 million, a 10% tax bill would be $4.8 million. Assume NationLink's revenue is much smaller, say 25% of Hoormood's, that its $12 million, leaves it with a tax bill of $1.2 million. So between the two, its $6 million. Assuming Golis and Telesom generate smaller profits than hoormood but for illustrative purposes, lets say 30 million each, so 10% tax rate will leave them with $3 million in taxes each for a grand total of $6 million. $10.8 million (Barakat Group - Hormod, Golis and Telesom) + $1.2 million (Nationlink) = $12 million in taxes just from the major telecoms which covers about 1 month of the government's budget (130million/12 = $10.8 million).


As for your assertion, can they afford to pay that much in tax ? Sure. It is a give and take. With increased stability and transitioning from a war economy, they have the potential for even greater revenues. If not, there is always the option of selling the spectrum which would be a tax of sorts.

[waryaa]

awahab, with all that cash in hand, it is very easy fort hem to replace any gov that tries to play hardball with them. Pure capitalism is at work in Somalia. They already have powerful reps in the parliament.

[AbdiWahab252]

awahab, with all that cash in hand, it is very easy fort hem to replace any gov that tries to play hardball with them. Pure capitalism is at work in Somalia. They already have powerful reps in the parliament.

Did not some try doing so with their financial support to the UIC and AS ?

[FAH1223]

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