Corrupt Practices at GENEL Energy’s Oil Exploration Sites in Somaliland Trigger Local Discontent, community protest and Potential Violence

Introduction: The discovery of oil and gas in Somaliland has raised hopes of economic prosperity for the young nation. However, recent
revelations of corrupt practices by a senior official of Genel Energy in Somaliland, Mr. Ibrahim, and his affiliated company, ADCON, have sparked tensions in the Hood and Hayira villages of the Togdheerregion, where the company's oil exploration projects underway.

A mob of protesters have halted work on the site in response to the embezzlement of millions of US dollars in funds that
were initially targeted and aimed at local development.

Corrupt Practices

At the forefront of these allegations is Genel Energy, a British oil exploration company with a significant presence in Somaliland. In recent times, it was revealed that Genel's most senior official in Somaliland, Mr. Ibrahim, had embezzled millions of US dollars through a company he controlled, ADCON.

The funds were entrusted to ADCON, tasked with carrying out interventions to enhance local development, foster improved basic services such as health and education in the local community, and raise awareness of the local community about the project and its short-term and long-term benefits.

However, due to the reckless, unprofessional, and utterly mesmerizing actions of those at the top of the company's decision in Somaliland, all those plans and budgets were dashed away. The funds were clearly mismanaged to enrich the likes of Mr. Ibrahim and a few others at the expense of the needy population.

Most embarrassingly, the funds allocated for prolonged awareness-raising have gone to Mr. Ibrahim and his close confidantes’ pockets, and the only media that has been circulated since then is that of the project's inception.

In addition, Mr. Ibrahim has severed ties with the community after engaging in a conflict-of-interest dilemma with the community related to staffing and managing rental vehicles. He has openly targeted local staff and local vehicles to replace them with affiliated individuals and ADCON-owned vehicles for his own economic interests.

This puts the larger interests of Genel Energy and Taiwan, a major shareholder, in greater jeopardy.

Impact on Local Community

The corrupt practices at Genel Energy have had a devastating impact on the local community. The embezzlement of funds has deprived the community of essential development projects, such as improved healthcare and education.

The conflict of interest and nepotism have also led to the exclusion of local people from employment and other economic opportunities related to the oil exploration project.

The local community's anger and frustration are boiling over. Mass protests have erupted at the oil exploration site, and there is a growing risk of violence. The situation is particularly volatile given the history of conflict in Somaliland.

This greedy and corrupt behavior has made the locals outraged, disappointed, and deceived, resulting in mass protests on site and burning of tires, halting of work. This is clear evidence of the extent of corruption emerging and how it could lead to damaging repercussions if not addressed swiftly.

The community's anger is currently directed only at Mr. Ibrahim, but if the company's senior officials and Taiwan, as a major shareholder, do not take corrective actions, the situation could escalate beyond Mr. Ibrahim and send a different message to the community. A message that adds insult to injury will bring about a situation that cannot be mended.

Possible remedy

To address the situation and take proactive steps in diffusing the local tension, the following recommendations are made: Genel Energy must immediately investigate Mr. Ibrahim, other officials, and their affiliated company involved in corruption.

The company must return all embezzled funds to the local community and rectify decisions made on the basis of nepotism and in favor of personal gains. Genel Energy must implement a transparent and accountable system for managing local development interventions.

The company must engage in meaningful dialogue with the local community to address their grievances. Taiwan, as Genel Energy's major shareholder, should use its influence to ensure that the company takes corrective action.

Conclusion

The corruption and mismanagement at Genel Energy's oil exploration sites in Somaliland is a serious threat to the country's stability and economic development. The company's senior officials, as well as its major shareholder, Taiwan, must take immediate corrective action to address the grievances of the local community. Failure to do so could lead to violence and jeopardize the future of the oil exploration project.

It is important to note that the situation at Genel Energy's oil exploration sites in Somaliland is just one example of the many challenges facing the oil and gas industry in the developing world. Corruption and mismanagement are widespread problems, often leading to conflict and environmental damage. The oil exploration partners and the local community must work together to address these challenges and ensure that the benefits of oil and gas development are shared equitably.

By: Abdi Rageh
Email: ragea876@gmail.com

Burco

The views expressed in this article are the author's own and do not necessarily reflect Garowe Online's editorial stance.