Islamic Development Bank Freezes Somalia Project.

The Islamic Development Bank has suspended a multimillion-dollar project in Somalia due to accusations of corruption and mismanagement.


Started in October 2016, the Dryland Development Project was being conducted in three rural villages to help pastoralists build resilience to drought, give them access to health and education services, and develop livestock and crops.

The project was set to cost $5 million overall, and since February 2017, the Islamic Development Bank (IsDB) had transferred about $1.5 million to an account at Somalia’s central bank in three installments.


But according to an IsDB audit of the project, a progress report submitted by the project’s coordinator, Abdishakur Aden Mohamud, contained “no substantial information” on what the project has achieved.


A letter by IsDB written on July 5 this year, seen by VOA Somali’s Investigative Dossier program, said there was no supporting evidence for the claims made in the report. The letter stated the audit raised several concerns, including the lack of a coherent payment system and overpayments to a supplier.


The IsDB also said while the audit was being conducted, the project coordinator made cash and check withdrawals which it said was “not in line with the fiduciary and financial management system.


” The bank has asked the Somali federal government to investigate and take appropriate actions. In the meantime, IsDB has frozen the account.

Source: Voice of America