Somaliland Development Corporation discussed in the House of Parliament

9 Feb 2012 : Column 509

House of Commons

Thursday 9 February 2012

2.25 pm

Alun Michael (Cardiff South and Penarth) (Lab/Co-op):

My second point is that I know that the Minister has already welcomed one initiative, namely the establishment of the Somaliland Development Corporation. It is being established because of the lack of recognition that makes involvement in international trade and business difficult. It will be launched on 22 February, the day before the conference, which Ministers will host. The point of the corporation is to facilitate international investment in Somaliland and economic interaction for the benefit of the Somaliland people. As an unrecognised state, it is isolated. Despite its extraordinary achievements in stability and democracy, international donors cannot deal directly with its Government, and foreign investors face uncertainty about whether contracts—the basis of secure business—can be enforced. The point of the corporation is to establish an entity to circumvent that problem. Indeed, I hope that it might lead the Foreign Office, through our trade arrangements, to be able to underpin some of the potential for business development and trade with Somaliland, which is difficult at present.

The development corporation will deal with donors such as Governments, aid agencies and international financial institutions; individuals, including enhancing the contribution that is made by many members of the Somaliland diaspora, as the Foreign Secretary rightly said; philanthropists and foundations; and foreign companies that wish to invest for profit. The founding directors are co-operating with the Crown Agents on the provision of banking services, and the intention is to develop a business plan with aims and objectives in the short, medium and longer term that will be available on the corporation’s website. The plan would be influenced by the development priorities of the Somaliland Government, the decisions of the two boards and the Somaliland development corporation trust. The launch on 22 February will show the confidence of the Somaliland Government in engaging with business and economic development as well as being a participant at the table at the conference.

I greatly applaud the Foreign Secretary for initiating the conference. By acknowledging that Somaliland’s participation is a positive way of coming into the international community, I hope that the UK Government’s lead in these matters will be acknowledged in return.

I hope that the Minister will cover some of these points in his response. I return to my initial point and congratulate the Foreign Secretary, the Secretary of State for International Development and the Minister not just on this initiative but on their personal commitment to making it work. I hope they achieve success.

Tony Baldry (Banbury) (Con):

The example of Somaliland has demonstrated that, when left to themselves, Somalis can form a viable nation state.”

I am therefore delighted that President Silanyo is coming to the London conference. It is excellent that UK initiatives are being taken by the voluntary and other sectors to set up a Somaliland development corporation, so that we here can give Somaliland whatever help we can with investment and job creation.

Alun Michael: The hon. Gentleman is making a very good point. Of course, economic development is also important for long-term stability. Does he agree that we must find mechanisms to allow investment in Somaliland in the absence of recognition, in order to make sure that what is a successful self-governing area—or independent country, if that is one’s view—is not penalised? The people of Somaliland should not be penalised in respect of economic development.

Martin Horwood: The right hon. Gentleman makes an extremely important point, one I was going to address in due course. He has highlighted the importance of the establishment of the Somaliland Development Corporation, and I certainly welcome that.

I also particularly welcome one of the four priorities DFID has identified for its development programme. It says that it will “boost wealth creation through supporting investment climate reform, skills development and job creation.”

It is essential that we help young Somalis to prosper. In some respects, promoting economic development may seem like a hopeless task, but we must seize all opportunities to help to increase prosperity.

It may seem even more hopeless to talk about the prospects for tourism, but a former diplomat has told me that Somaliland is a relatively peaceful and prosperous country that is safe for visitors and apparently has beautiful beaches. If it was recognised and had the status of a separate country, and then began, as it were, to build its brand separately from Somalia and the areas still affected by war and conflict, Somaliland could become quite a positive economic development story, and tourism could be a key sector. We must seek out opportunities to help Somaliland to develop. It is absolutely right that 40% of DFID’s development aid is focused on Somaliland and that we are taking steps such as establishing the Somaliland Development Corporation, because that example of prosperity and stability could send a very powerful message in the region.

Mr Bellingham

This is an important conference for President Silanyo. He has been invited to take part. We feel strongly that this is a conference to which the Somalilanders can contribute. They can tell the rest of Somalia what they have done to build stability, what has worked in their free and fair elections, and why they are a good development partner for the UK. His decision is a brave one and the right one.

My hon. Friend the Member for Banbury asked me whether Somaliland’s position will be enhanced by attending. I believe that it will. President Silanyo will have a chance to speak. He will talk not about independence for Somaliland, but about what Somaliland can do to enhance the peace process in Somalia and about what is happening on his doorstep. By coming on to the international stage, he will meet a large number of international statesmen and Heads of State. He will be able to explain to them what he has done that has worked in Somaliland and why it has been so successful. I take on board what my hon. Friend said about the Somaliland development corporation and the role of the private sector.

http://www.publications.parliament.uk/pa/cm201212/cmhansrd/cm120209/debtext/120209-0002.htm

Somaliland Development Corporation (SDC) official launch on 22nd February 2012 at the House of Parliament, Westminster

Somaliland Development Corporation was, officially, launched by the Republic of Somaliland President, H.E Ahmed Mohamed Mohamud - Silanyo, and Henry Bellingham MP, UK Minister for Africa, the UN, Overseas Territories and Conflict Issues. The launch, which took place at the Jubilee Room, Houses of Parliament, Westminster on the 22nd February 2012, was organised by the Chair of the All Party Parliamentary Group for Somaliland and Somalia, Rt Hon Alun Michael MP and Vice Chair, Tony Baldry MP, and attended by many honourable guests from both the British and Somaliland governments, international investors and businesses, civil societies, and the media.

 

Lunch Meeting with H E The President Of Somaliland et al, The Commonwealth Club, London, Monday 21st November 2011

Lunch Meeting with H E The President Of Somaliland et al
The Commonwealth Club, London, Monday 21st November 2011

On 21st Nov 2011 Friends of Somaliland and Founders of the Somaliland Development Corporation (“SDC”) hosted a lunchtime meeting with the President of Somaliland, with the agenda item being a discussion on the Somaliland Development Corporation. 

Len Tiahlo, an SDC CO founder sponsored the event. With him was Legal Advisor and co –founder Jeremy Carver CBE, formerly Head of International Law at Clifford Chance and Board Member of Transparency International, Steve Taylor, Director of Crown Agents, who have agreed to provide SDC banking services and Paul Whiteway of Independent Diplomat.  Fellow co-founder Ambassador Myles Wickstead CBE was absent on travel but passed on his best wishes with great expectations for the SDC.  The Minister of Planning and Development Dr Saad Shire, Mr Eid Ahmed Cardif based management and development consultant,  Mr. Osman Mohamed, Contracts Executive with Abu Dhabi Oil Company ADNOC and Secretary to the SDC in the UAE were also absent and conveyed their best wishes for the SDC.

The lunch was held at the Commonwealth Club and was joined by the First Lady of Somaliland Amina-Weris Sheikh Mohamed, Minister of Foreign Affairs and International Cooperation Dr Mohamed Omar, Minister of State for Foreign Affairs Dr Mohamed Rashid Sheikh Hassan, Director of Somaliland Television in Europe Mr. Khadar Ali, Mrs. Lulu Todd and Ahmed Kadleye both from SIRAG.

The SDC Leader for this meeting was SDC Director Jeremy Carver After welcoming the President of Somaliland and his delegates, Jeremy Carver recapped past statements about Somaliland’s self sufficiency, self reliance and outstanding achievements over the last 20 years while receiving minimum assistance from the outside world. Jeremy also stressed the fact that Somaliland has fulfilled all the criteria that a state has and have every right to govern their own affairs. The “you tube” Internet videos referenced in this dispatch cover these issues and also introduced the concept of the SDC as a trustworthy vehicle for economic interaction with the International Community.

President Ahmed Mohamed Mohamud (Silanyo) thanked the SDC Founders and Friends of Somaliland from Great Britain who are always there to support Somaliland Government and their people whenever Somaliland is in need.

Further, the Minister of Foreign and International Cooperation  Dr Mohamed Abdillahi Omar thanked the Founders of the SDC and associated Friends of Somaliland and stressed the fact that Somaliland needs an initiative like this for Somaliland’s development. Dr Mohamed Rashid Hassan Minister of State of Foreign Affairs  and Director of the SDC highlighted the need to strengthen Somaliland's engagement with the outside world and to strengthen the role of the Diaspora in Somaliland's development. Somaliland Diaspora attendees also gave a short speech thanking the SDC Founders and the importance of the SDC  especially during this time whilst Somaliland is not formally recognised.

Background Info. of SDC: SDC  was established for the benefit of the people of Somaliland where the SDC will be owned and managed for the exclusive benefit of the people of Somaliland with full operational and financial transparency.  The following “you tube” video information provides further background on the need for international economic and political recognition.

Go to:  http://www.youtube.com/user/somaliland1960  for the following two videos: 

Somaliland Development Corporation

Somaliland - Recognition - No Downsides - Congratulations!

Somaliland Development - Jeremy Carver CBE

For further information contact:

Mrs Lulu F Todd, Osman Mohamed or Len Tiahlo
Email: somaliland.devcorporation@gmail.com

Somaliland Development - Jeremy Carver CBE

Somaliland Development 
– The need for action beyond democratic elections and the quest for recognition.   

1) We are standing close to the Commonwealth club where, seven years ago, Captain Zarroug of Al Reem Company, Abu Dhabi, and Enex sponsored the visit of the then Somaliland President Riyale and Foreign Minister Edna Adan to London in their quest for Somaliland's recognition by the British Government. 

At that time, as in our last video, we presented the clear view that Somaliland has amply satisfied all the criteria that international law requires for independent statehood. 

Now, in this second message, we want to focus on the practical matter of how to establish the most direct, efficient and transparent means for supporting Somaliland's economic development.

2) We ask you to support Somaliland in the creation of the Somaliland Development Corporation.  

Let me explain why this is so very important for Somaliland's future prosperity, and what it could achieve 

As an unrecognised State, Somaliland is isolated not only because other governments will not deal with it properly and openly.  Their legal systems also cannot deal with Somaliland.  This means that donors and companies cannot make proper bargains with Government of the State.  We know that support in the form of goods, aid or investment is directed to recognised institutions outside Somaliland.  Little finds its way to Somaliland, and is sadly minimal and insufficient to meet the needs of your people.   

3) How would the Somaliland Development Corporation solve the problem?  It would do so because it would exist as a body that would be recognised by everyone.  Others could deal directly with the Corporation, without compromising their attitudes to recognition of the State.  The Corporation would be visible to foreigners.  At the same time it would be transparent to the people of Somaliland, who could observe the direct benefits of its work on their behalf. 

As funds flow to the Corporation, it will organise for the necessary work - such as essential infrastructure projects, roads, water supply, electrical power, health clinics and the like - could be competently planned and budgeted with emphasis on use on maximum use of local resources.   

4) Let me describe how the Corporation would be established. 

The Corporation should be created as a company in a place with a neutral, predicable administrative and legal system, with transparent company law and minimal effective tax rates, welcoming to non-resident business.  One of the new international centres of the UAE could be suitable. 

The purpose of the Corporation would be to provide Somaliland with a recognised legal entity, capable of dealing with donors, investors and markets. We suggest calling it the “Somaliland Development Corporation”. 

As a company, it needs a board of directors, who would decide on the projects to be undertaken and the terms on which grants and investments would be made.  The board would appoint the most highly qualified managers of the Corporation's work, which could be organised and run from a convenient location such as London. 

5)  The board will be answerable to the owners of the Corporation: all the people of Somaliland, represented by trustees commanding the widest non-sectarian respect. They will be the human focal point for attracting funds and overseeing effective direction of the Corporation's affairs to achieve the best results for Somaliland.  

The board and the trustees would meet separately, sufficiently often for effective control of the Corporation's work.  Details of each meeting would be posted to the Corporation's website so that all stakeholders have direct access to the Corporation's affairs. 

6) The Somaliland Development Corporation would be the engine that generates the business plans, the project specifications and budgets that reflect the most urgent basic needs of the country.  The directors, acting collectively, would respect and authority by including qualified politicians from the main Somaliland parties and other suitable non-partisan individuals from across the country. 

7) Joint Ventures and other commercial business activity by the State can have their shares held by the Somaliland Dev Corporation. Foreign partners and investors will in this way have confidence in knowing that their interests are properly and openly managed without the uncertainties of transient political perceptions or the uncertainty of pending recognition.  

8) What this arrangement does is to create a clear means whereby Aid providers, Donors and Investors can work openly with Somaliland. It overcomes the present situation where very little resource finds itself to local real results.  

9) Somaliland has identifiable highly urgent needs for development.   Such as: Roads, water and sanitation, community health education and governance support, agriculture, micro finance, electrical power supply and much more.  

All this can be done through direct transmission of resources to the Trustees and the wholly owned Somaliland Development Corporation, acting for the whole of Somaliland. 

We commend this proposal to you all.