UNDP Somalia rocked by scandal

The allegations of a 20-year Africa development veteran against the agency in Somalia have rocked the reputation of the region and the non-profit organisations working there. News released by the agency in Washington DC says that the whistleblower, Dr Ismail Ahmed, claims that the UNDP in Somalia has harmed the remittance industry in the country and violated compliance regulations. UNDP Remittance Programme.

An insider says that the allegations of wrongdoing are focused around the UNDP Remittance Programme that was intended to help Somalis gain access to financial services and micro finance by putting to use remittances received from relatives abroad. The Program was further aimed at assisting Somali MTOs to self-regulate and comply with international norms for money transfers, after the closure of the largest Somali MTO in 2002 by the US Treasury Dept for supposed links to terrorist organisations.

This and other related programs had funding from the European Commission and UK’s DFID. Terror links and corruption Corruption during bidding processes for contracts awarded to KPMG East Africa are also indicated and the most sensational of all, UNDP’s support of a Somali MTO with alleged links to terror outfits. The latter may have allowed the MTO to fraudulently acquire remittances estimated to amount to $30 million. The UNDP allegedly released frozen funds and arranged access to visa documents, in addition to supporting the election of questionable persons to high positions in the financial services authority.

The MTO in question collapsed in 2006. The situation is likely to adversely affect the remittance industry in an already conflict-ridden region. Industry insiders claim that the allegations may be only one side of the story and the situation is highly political in nature.

Questions about the motives of and evidence supplied by the accuser remain as yet unanswered.