http://online.wsj.com/article/SB1000142 ... 3Dcomments
I think its way more than $100 million. Probably close to $300 million.
Somalia, at War, Rummages for Cash
Government, Lacking Funds to Fight Militants, Hires U.S. Lawyers to Recover Money Stashed Abroad by Past Regimes
By SARAH CHILDRESS
The cash-strapped Somali government is searching to recover funds locked in bank accounts around the world, in an attempt to stave off bankruptcy and fund a battle that has accelerated in recent days against an al Qaeda-backed insurgency.
Somali and African Union troops last week launched a counterattack against Islamic militants in the capital, Mogadishu, in an effort to carve out space to govern. At least 48 people have been killed, according to medical personnel.
Reuters
A fighter from al Shabaab, the Islamist insurgency trying to unseat the government of Somalia, runs from a burned African Union tank in the capital, Mogadishu, on July 2.
The government of President Sheikh Sharif Sheikh Ahmed controls only a small area of the city, with much of the largely lawless country under the sway of clans, pirates or militants from the al Qaeda-backed group, al Shabaab.
Mr. Ahmed has reached out to neighbors to support the fight. A special summit of East African leaders this week ordered the deployment of 2,000 additional troops to Somalia to strengthen the 6,000-troop African Union peacekeeping mission.
To keep itself running, Mr. Ahmed's government is trying to replenish its coffers a few million dollars at a time. Previous Somali regimes have left at least $100 million in overseas accounts—nearly enough to keep the government running for a year—according to people familiar with the matter.
"It was something very important, to return the Somali republic's frozen assets," said a Somali official who is familiar with the effort. "It could help restore the country's lost life."
The missing funds were stashed away in U.S. and European bank accounts under the last strong federal government—led by Mohamed Siad Barre nearly 20 years ago—and the last government, of President Abdullahi Yusuf Ahmed, who resigned in 2008.
Ali Amalow, the head of the central bank under Mr. Barre, kept a detailed roster of the funds, and brushed off attempts by various warlords to retrieve the money when Mr. Barre's regime collapsed in 1991.
For the past two decades, Mr. Amalow has worked with banks to ensure that the accounts couldn't be accessed by anyone until an established central government could claim them, according to a person familiar with the matter.
Mr. Amalow declined to comment. Somali officials familiar with the matter said the president had instructed them not to discuss the matter publicly until it was concluded, but some shared details on condition of anonymity.
Last year, President Ahmed appointed Mr. Amalow to lead the effort to recover the funds. The government contracted Maryland-based law firm Shulman, Rogers, Gandal, Pordy & Ecker, P.A., to help recover the assets, according to a copy of the agreement between the two parties that was seen by The Wall Street Journal.
A representative of Shulman Rogers confirmed that the firm was working to recover assets on behalf of the Somali government. The firm has experience in tracing and recovering assets, often for companies or wealthy individuals.
Work on recovering the money began in earnest in February. At least $1.5 million has been recovered from European banks so far, according to a Somali government official familiar with the process. He declined to offer further details.
The Somali government needed help collecting the funds because many of the accounts have become dormant. And banks, as part of their normal compliance process, are typically required to ensure those attempting to access the account should be authorized to do so.
That can be complicated in some countries that lack full diplomatic ties with Somalia, including the U.S., where some of the bank accounts are located. Though the U.S. supports the Somali government, it has yet to establish formal diplomatic ties with the administration.
A U.S. State Department spokesman didn't respond to requests for comment on the collection effort.
U.S. officials have said the current government represents Somalia's best hope for stability after nearly two decades of conflict. The U.S. has given the government weapons, assisted with efforts to train its troops and invested in the African Union peacekeeping mission that protects the weak Mogadishu regime.
Yet the Somali government isn't merely weak, it is nearly broke. Its 2010 budget—believed to be the country's first published budget in two decades—is themed "Keeping Our Heads Above the Water." The government estimates it needs about $110 million per year to boost its security sector and pay government employees—which is far short of the $22 million it expects to earn in customs duties this year. Somalia relies instead on donor support to pay civil servants and government troops, who are liable to defect without a regular monthly salary.
Yet donors have given little money to the Somali government directly, in part due to concerns about accountability. By December, the government had a little less than $3 million from donors in its coffers.
