Money Markets
Somalia says informal money transfers funding al Shaabab
Somali women receive food aid at a distribution centre in southern Mogadishu. Somalia’s central bank governor warns the country could face starvation if it is hit by a Zimbabwe-style inflation. File
Posted Wednesday, January 13 2010 at 18:16
The United Nations Development Programme has managed donor money since the central bank’s collapse in 1991 and charged 8-14 per cent for its services, Ali said.
The government contracted PricewaterhouseCoopers (PWC) to take over the U.N. body’s services in mid-2009.
“The only monetary agent for the government is the central bank. Therefore it is unconstitutional for private financial institutions to be involved in the management of government money,” Ali said.
“Private companies can be employed as auditing firms, not management.” -Reuters
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