How a $5 Million Extortion Scheme Sparked a Clash Among Powerful Allies of Somalia's President

by: Ali Yusuf | 17 February 2025 19:05
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    How a $5 Million Extortion Scheme Sparked a Clash Among Powerful Allies of Somalia's President

    MOGADISHU, Somalia (HORN OBSERVER) – The Banadir Regional Court has initiated legal proceedings against Auditor General Ahmed Isse Gutale over allegations of corruption, abuse of power, and extortion, marking one of the most significant fraud c

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The Game is Among Scoundrels: Supreme Court Judge Salah Ibrahim Dhiblawe (left), Banadir Regional Court Judge Salah Ali Mohamud (centre), and Auditor General Ahmed Isse Gutale. | PHOTO/ HORN OBSERVER.
MOGADISHU, Somalia (HORN OBSERVER) – The Banadir Regional Court has initiated legal proceedings against Auditor General Ahmed Isse Gutale over allegations of corruption, abuse of power, and extortion, marking one of the most significant fraud cases in Somalia's history.

However, the court itself faces credibility issues, as its officials stand accused of widespread corruption, money laundering, and even sexual exploitation of vulnerable women seeking justice.


Ahmed Isse Gutale, a former journalist, had his contract with BBC Media Action terminated in 2010 due to incompetence.

In February 2023, he was appointed as Somalia’s Auditor General by President Hassan Sheikh Mohamud, reportedly as a reward for his role in a propaganda campaign through Radio Mustaqbal during the 2021 Mogadishu street violence and the 2022 presidential election.

Radio Mustaqbal, a Mogadishu-based media outlet, is co-owned by Gutale and his cousin Mustaf Yasin, the Director of Somalia’s National Communications Authority.

From the outset, experts and civil society groups voiced concerns about Gutale’s lack of experience and his alleged corrupt practices.

How the Scandal Began to Crack Open

Gutale soon found himself at odds with other government officials. He allegedly demanded a 5% bribery on all transactions processed at the Central Bank of Somalia through the Office of the Auditor General, leading to tensions with Finance Minister Bihi Iman Egeh and Accountant General Abdirahman Mohamed Anas.

In November 2023, the Accountant General sought legal clarification from the Solicitor General regarding the dispute. That same month, the Finance Minister, Egeh, took the unprecedented step of barring Gutale from involvement in government payment processes.

Two senior officials—Quality Control Auditor Abdale Mohamed and another audit management officer Sadaq Ahmed Abdulle—were dismissed after raising concerns about Gutale’s conduct.

Additionally, a female employee, Hafso Abduqadir Ali, was suspended and placed under security investigation after Gutale discovered she had married the ex-husband of his second wife, triggering internal turmoil within the Auditor General’s office.

The $5 Million Extortion Scheme

Under the guise of combating terror financing, President Hassan Sheikh Mohamud and his former National Intelligence Director, Mahad Salad—Gutale’s cousin—allegedly orchestrated an extortion campaign targeting businesses, NGOs, and individuals. The government froze assets including those alleged to have linked to al-Shabaab and demanded payments, generating an estimated $5 million.

According to sources, these funds were funneled into private accounts through Premier Bank which is co-owned by President Hassan Sheikh Mohamud. The extortion scheme forced several business leaders to flee Somalia, redirecting millions in local investments to Kenya, Dubai, and Turkey as it has been confirmed by a member of parliament, Abdirahman Abdishakur, months ago.

"The five million dollars were withdrawn from various accounts. These funds were generated through extortion from businesses and individuals whose assets were frozen between 2022 and 2024,” a Banadir Regional Court official revealed.

A Mogadishu-based businessman in the car dealership sector confirmed that he was forced to pay 20% of his $300,000 savings to court officials to regain access to his frozen funds.

"I had to pay 20% to Banadir Regional Court officials to access my money. Otherwise, I would have lost it completely. This was pure extortion,” the businessman, who requested anonymity, stated.

Court Summons and Power Struggle

The conflict escalated when Gutale demanded a share of the illicit proceeds, prompting court officials to retaliate.

On Saturday, Banadir Regional Court Judge Salah Ali Mohamud, himself implicated in corruption, issued a summons ordering Gutale to appear in court within 24 hours on charges of corruption, fraud, and abuse of power.


In response, Gutale held a press conference accusing top judicial officials—including Banadir Regional Court Chairman Salah Ali Mohamud, Appeals Court Chairman, Supreme Court Judge Bashe Yusuf, and his associate Salah Ali Dhiblawe (also known as Salah Dheere)—of massive corruption and obstructing financial audits.

"Our investigation found that from 2016 to 2025, there has been no audit of the finances collected by the Banadir Regional Court, the Appeals Court, and district courts. Furthermore, court officials blocked all our attempts to audit these funds,” Gutale claimed.

Two of the accused officials, Salah Ali Mohamud and Salah Ali Dhiblawe, are close allies of President Mohamud and have previously been linked to terror-related activities and allegations of sexual abuse against minority women seeking justice in the courts.


DANGEROUS: Two of the accused officials, Salah Ali Mohamud (pictured left) and Salah Ali Dhiblawe (right), are close allies of President Mohamud and have previously been linked to corruption, terror-related activities and allegations of sexual abuse against minority women seeking justice in the courts.


Presidential Intervention and Uncertain Resolution

A source within Villa Somalia confirmed that President Mohamud intervened in the escalating crisis, instructing Gutale, Salah Ali Mohamud, and Salah Ibrahim Dhiblawe to cease hostilities. 

The same source indicated that the disputed $5 million has already disappeared. 

"The issue now is not about the money. It is stopping this conflict from spilling over," the source added.

With no clear resolution in sight, the response from the Prime Minister’s office remains muted. Although the Auditor General technically falls under the Prime Minister’s jurisdiction, aides to Prime Minister Hamza Abdi Barre have refrained from taking sides in a conflict involving some of the president’s most powerful and corrupt allies.

Independent legal expert Abdullahi Dudaaye described the case as "unprecedented,” urging Gutale to comply with the court order.

"Gutale appears to be interfering with judicial processes and should surrender himself to the court,” Dudaaye told Universal Somali TV.



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