A senior Puntland cabinet minister has denied accusations from federal government leaders that it is undermining the country’s debt relief program.
Addressing a large crowd in Garowe, Puntland’s Minister of Planning, Mohamed Said Faroole, argued that none of the projects financed by the billions of dollars in loans taken out in Somalia’s name had been implemented in Puntland. Faroole claimed that the loans were instead used for projects in Mogadishu and Hargeisa, with the current Somali government allegedly misusing some funds.
“We don’t owe any money. The loans taken by previous governments were meant for projects. Puntland hasn’t received a single project from these loans, except for two airports in Bosaso and Garowe and a grant provided by Italy,” Faroole said.
Faroole also suggested that the federal government aims to use the $2 billion in debts to corrupt and destabilize the country, adding that Puntland did not consent to a debt it was not consulted on or aware of.
On the other hand, Somali Prime Minister Hamsa Abdi Barre accused Puntland President Said Abdullahi Deni of being responsible for any setbacks in Somalia’s debt relief program.
At an event in Mogadishu, Prime Minister Hamsa stressed that the federal government would not accept failure in the extensive debt forgiveness process, urging President Deni not to politicize the issue.
In March 2020, Somalia qualified for debt relief under the HIPC Initiative, which allowed the government to significantly reduce external debt and create fiscal space for investment in development priorities. This past March, the International Monetary Fund (IMF) revealed that Somali authorities had reached a staff-level agreement for the fifth review of Somalia’s Extended Credit Facility (ECF) arrangement.
