Report reveals corruption and Russian Oligarchy's connection in Somalia's Central Bank

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Report reveals corruption and Russian Oligarchy's connection in Somalia's Central Bank

MOGADISHU (HORN OBSERVER) – A 62-page document presented by Member of Parliament, Abdullahi Hashi Abib, Chair of the Accountability and Transparent Caucus of the Somali Federal Parliament's House of the People, reveals a web of corruption

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Somalia Central Bank Governor, Abdirahman Mohamed Abdullahi (pictured right) paid over $1.4 to company owned by Russinan oligarchy, Anatoly Igorevich Loginov (pictured left).

MOGADISHU (HORN OBSERVER) – A 62-page document presented by Member of Parliament, Abdullahi Hashi Abib, Chair of the Accountability and Transparent Caucus of the Somali Federal Parliament's House of the People, reveals a web of corruption within the Central Bank of Somalia.

This damning revelation titled ‘Corruption, manipulation, and abuse of workers’ rights within the Central Bank of Somalia’, unveiled on August 22, 2023, exposes the embezzlement of the nation’s wealth, including grants from international organizations such World Bank grants intended to build government capacity.

The Russian oligarch

At the heart of the scandal lies the involvement of a Russian oligarch-owned company contracted to create a dubious payment switch system for ATMs and POS [Point of Sale] operations within the Central Bank.

The contract, awarded to BPC Technology (also known as BPC Smartvista FZ-LLC) based in Dubai, was shrouded in secrecy, never advertised as legally required.

Between January 2020 and December 2021, the Dubai-based company received payments totaling $1,453,380.

Between 1 January 2020 and 31 December 2021, the Dubai-based company received payment sums totaling $1,453,380. To conceal their corrupt dealings, the Central Bank’s Governor and associates established the Somali Payment Switch (SPS), aiming to profit from the contract. However, as captured by the Parliamentary report, the system collapsed, and four years later, nothing still works.

Hussein Ssegujja, the Managing Director of SPS, resigned on August 1, 2023, citing insurmountable obstacles, mismanagement, and corruption within the Central Bank.

In his resignation letter dated 30 July 2023, he revealed that he had been threatened with termination if he did not accept BPC as the awardee of the contract.

"The MD [Managing Director] has been threatened to get fired if he fails to accept BPC. Unfortunately, this choice is not within my control as the Managing Director but it entirely depends on the board,” Ssegujja writes in his resignation letter.

"Given the situation as outlined above, it is difficult for me to continue operating as the MD for the company,” he writes "I therefore, tender my Resignation Notice from the role of MD starting from the 1st of August 2023,” Hussein Ssegujja wrote.

Documents also shed light on BPC Banking Technologies, founded in 1995 by Anatoly Loginov, the CEO, and founder.

Anatoly Igorevich Loginov is among Russian nationals who have become ‘Maltese citizen’ through the purchase of Maltese passports, a tactic frequently employed by Russians to evade international sanctions.

Loginov’s name appeared in a list presented by Maltese authorities in 2018.

An investigation is needed to determine if Loginov is on any sanctions list.

MP Abdullahi Hashi Abib confirmed to us that the SPS system’s failure was due to the unsuitability of the chosen company. The Governor of the Central Bank, Abdirahman Mohamed Abdullahi, is suspected of benefiting from the contract, explaining why BPC was the sole recipient of the lucrative deal.

The Somali Parliamentarians are now calling for an international inquiry to determine if the Russian company is subject to international sanctions.

Despite our attempts to seek clarification from the Central Bank Governor, Abdirahman Mohamed Abdullahi, regarding this contract and other suspicious transactions, he has remained unresponsive.

Similarly, BPC has yet to address our inquiries regarding their agreement with the Central Bank of Somalia and their connections, if any, to Russian authorities.