People rushed to the banks in Mogadishu including Premier Bank to withdraw their their funds, however due to severe cash crunch, made it difficult for the bank to honor withdrawal requests or refund their customers.

"I want to withdraw my money from Premier bank, but now I am disappointed as the bank says everyday that they do not have cash” one customer standing in queue outside Premier bank  and requested to remain anonymous  told Horn Obsrver, "I don’t know why the bank is not paying me my own money I deposited”

These financial institutions invested in real estate, building houses in the hope of making a profit. However, the houses were deemed unfit for habitation, resulting in the loss of tenants and the inability to resell the land.

Early January, Somalia opposition leaders, including former President Sharif Sheikh Ahmed, former Prime Minister Hassan Ali Khaire, and MP Abdirahman Abdishakur Warsame, have strongly condemned the ongoing auction of public lands by Hassan Sheikh Mohamud's administration. In a joint statement the three leaders accused the government of breaching constitutional and legal provisions by auctioning public property. 

This was followed by after more than 100 federal lawmakers recently called for the Banks not buy the government lands which the government is auctioning, should they buy it, they will likely lose their money as it is deemed unlawful.

In Mogadishu, enforced evictions persist as internally displaced persons (IDPs) and vulnerable families are removed from public lands, which are then sold to wealthy businessmen. Among the sites affected by these sales include former military camps, a public cemetery, schools and several abandoned government ministry buildings, leaving displaced  residents in dire circumstances.

Economic experts have pointed out that the banking problem is increasing the government’s occupation of these lands, which has led to people who can buy them. This leaves banks unable to liquidate their assets to recover funds.

Private banks in Somalia are important to keep the savings of many citizens, who rely on these institutions for financial security. The potential failure of these banks could lead to significant financial losses for depositors.

- Horn Observer -