Somalia Petroleum Ministry dismisses allegations by UN investigators

MOGADISHU, Somalia, August 13, 2015 (Garowe Online)-Somalia’s Ministry of Petroleum and Mineral Resources dismissed as ‘quid pro quo’ allegations of improper payments made to individual government officials amid vote of no confidence in the President, Garowe Online reports.

Somalia Federal Government entered into Capacity Building Agreement with the British Oil Company, Soma Oil & Gas on April 25, 2014.

8-member panel of UN experts said in confidential report that Soma transferred payment totaling $490,000 to senior civil servants at Mogadishu Petroleum Ministry.

“We are proud that our institutions are improving and progressing.Good governance, transparency and accountability are of greater essence to Somalia in the proper management of its resources. Transparency in public service pay and procurements are a national priority and monitored through our internal and international mechanism such as the Financial Governance Committee (FGC),” Ministry of Petroleum and Mineral Resources unveiled on Thursday.

It also called the allegations of acting in a conflict of interest ‘misleading and inaccurate’, a few days after Soma Oil & Gas strongly contested confidential UN report.

In response to the alleged payments, Soma insisted that UN monitors fundamentally misunderstood the nature of payments made under the terms of Capacity Building Agreement.

Soma is in agreement to execute Seismic Option deal passed by Council of Ministers.

Somalia is also currently assessing its oil and gas potential, gaining the attention of investors keen on stake in the country’s oil and gas industry.

In the wake of the UN report, UK’s Serious Fraud Office (SFO) investigated the company’s headquarters in London, Reuters reported.

UN-backed national government has drafted first petroleum bill and reportedly awaits cabinet passage in the coming weeks. 

GAROWE ONLINE