Due to wide practice of corruption in Somaliland unseen in the region before, international donors plan to stop giving direct aid to Somaliland's notorious administration led by ailing Ahmed Silanyo. Instead they plan to set up a trustee fund that will be co-managed the likes of Denmark and the UK.
The new scheme, dubbed The Somaliland Government Fund, was established by Denmark and the British government.
During last week's international conference on Somalia in Brussels, the EU also declared it would make "special arrangements" for Somaliland, indicating that some of the funds pledged to Somalia will be given to Somaliland region but only through the trustee fund.
In recent times, Ahmed Silanyo has been out muscled and reduced to only mere figurehead. Inside Hargeisa, almost every decision is made by Hirsi Ali Haji Hassan, Minister of "Presidency", who is often regarded as the true president of the region.
Under his leadership corruption has sky-rocketed and as a result many major potential investors have withdrawn their interest in Somaliland all together.
Just weeks ago, the Anglo-Turkish energy giant Genel left the region after Hirsi and other ministers demanded up front payment that did not go through the Ministry of Finance. The London-based company also had problems with the locals with every man and tribe demanding their cut even before the company was able to convince its sub-contractors to unload their trucks.
This conditions have made international firms difficult for them to work and many are now avoiding Somaliland region all together. It is believed Ophir Energy also sold its blocks because of the wide corruption.
Just this week, the British Government appointed a special represent for the Somaliland Fund to participate in a conference in Brussels as part of a “New Deal for Somalia”. During the meeting, international donors have pledged €1.8 billion in reconstruction aid for Somalia but the largest junk will be spent in Mogadishu and southern Somalia.
VIDEO: UK-appointed, Somaliland Fund special representative addresses The New Deal conference in the Belgian capital.
Anyone doing business with Ahmed Silanyo and his tribal administration is advised, they at their own risk. It is like doing business with Nigeria's renowned scams.
Aid agencies should also go through the Fund in order to see their projects succeed.
No-confidence motion filed against president Ahmed Silanyo
The wide spread corruption in Somaliland region has further isolated the poor region as Silanyo's administration lost confidence with investors, international community, locals and the region as whole. Now at least 15 members of Somaliland's small parliament have already submitted no-trust motion against President Ahmed Silanyo.
Unrest in eastern regions
Several people were injured Friday in Erigavo in Sanaag region when Somaliland regional police and military forces opened fire on demonstrators before reeling the town under curfew, witnesses said.
The region has been tense since Somaliland made a controversial decision to blacklist Somalia's weak but internationally recognized Shilling notes as the main trading currency. This has angered merchants who said they were losing hundreds of thousands since Somaliland currency is not recognized by a single entity outside Hargeisa.
For the past three weeks clashes have been erupting in the eastern town.
