Central Bank Governor Resignations Letter
October 30, 2013
HE Hassan Sheikh Mohamud
President of Federal Republic of Somalia
Mr President:
It is with great sadness that I submit to you this letter to serve as
my official resignation of the post of Governor of the Central Bank of
Somalia.
Your excellency, when I accepted this role, I did so with the
interests of the Somali people in mind. Having worked at senior levels
at some of the largest financial institutions in the world, I was
looking forward to the opportunity to lend my skill sets to rebuild
the Central Bank and improve the lives of our people, as the Central
Bank is key to the development of the economy. I was encouraged and
inspired by the Somalis whom I met everywhere I went, so full of hope
that the nation’s recovery was near, and that they could soon partake
in the rebuilding process. Undoubtedly, economic recovery is critical
to this recovery from both a fiscal and security perspective.
However, it has become clear to me that my ability to act in the
interests of the Somali people has been undermined and will continue
to be undermined by various parties within the administration. From
the moment I was appointed, I have continuously been asked to sanction
deals and transactions that would contradict my personal values and
violate my fiduciary responsibility to the Somali people as head of
the nation’s monetary authority. To use one example, as you are aware
based on our multiple conversations on this matter, I vehemently
refused to sanction the contract with the law firm Schulman & Rogers,
regarding recovery of the Somali financial institutions assets frozen
since the fall of Siad Barre’s regime.
Your Excellent I have read both the Agreement and Power of Attorney which your office instructed the
former governor to sign with the law firm. I don’t believe that these
documents serve the interest of the Somali nation and I believe that
they put the frozen assets at risk and open the door to corruption. My
suggestion to let me share these documents with a Central Bank
appointed legal counsel for a second opinion fell on deaf ears. The
message that I have received from multiple parties is that I have to
be flexible, that I don’t understand the Somali way, that I cannot go
against your wishes, and that my own personal security would be at
risk as a result. I am the least concerned about the security threat,
but I am truly disappointed that I have not received your support and
leadership on this matter so that I could objectively perform my
duties.
Your Excellency, I am sure you are aware, Part II, Section 3, Article
6 of the Central Bank of Somalia Act states: “Except as otherwise
specified in this Act, the Bank, and the members of the Board or the
staff, shall not take instructions from any other person or entity,
including Government entities. The autonomy of the Bank shall be
respected at all times and no person or entity shall seek to influence
the members of the decision-making bodies or the staff of the Bank in
the performance of their functions or to interfere in the activities
of the Bank”. Unfortunately the Central Bank has not been allowed to
function free of interference, and as such cannot operate as a
credible institution.
Your Excellency, the Central Bank is in poor condition with payroll
processing the only semi-functioning unit. It will take dedicated
effort, expertise, and commitment from multilateral agencies to build
it into a fully functioning Central Bank. It requires a governance
structure starting with the appointment of a Board of Directors. Most
of all for the country’s economic recovery to start, financial system
to advance, and Hawalas to remain open and continue to serve the
Somali people, the Central Bank has to take its rightful place as
licensor, supervisor, and monitor of the country’s financial system.
In the seven weeks since my appointment as Governor, I have already
made significant progress. I met with global financial leaders,
including the World Bank, IMF, AfDB, Barclays and the US Government,
to raise the profile of the remittance crisis facing Somalia and help
drive a solution. I worked closely with the World Bank and the IMF to
develop a detailed plan to rebuild the Central Bank?s functions on a
large scale. The IMF has already started training our staff in
Nairobi. I reached out to the money transfer companies who are now
looking to the Central Bank for leadership and guidance. The staff at
the Central Bank is more motivated now than they been since before the
civil war. I can only imagine what could have been achieved provided I
had your support to perform my duties objectively.
Your excellency, while I am disappointed by this lack of support, I am
more disappointed for the Somali people who would have benefited the
most from these and future contributions.
Sincerely,
Yussur A.F. Abrar
Governor
