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Puntland State, Somalia Garowe _________________________________________________

January 10, 2010 First Anniversary of President Farole's Administration 1. O VERVIEW T he Puntland State w as establishe d in 1998, as a result of a series of com m unity-w ide consultations and constit utional conferences, aimed at setting up an a dministration t hat co uld bring la w and order in t he territory, secure stability, reinstit ute collapsed p ublic instit utions and promote develop ment for its people, w aiting to be part of a fut ure federal system of Somalia. It is unlikely t hat Puntland ret urns to the highly centralized form of government that existed before the fall of the central government of Somalia in 1991. W e belie ve that a federal system, in Somalia, can be achie ved by first b uilding state governments in other parts of the country w ith f unctional instit utions sup ported by their o w n constit uencies.

Puntland State is a stable region of Somalia w ith a surface land com prising one-t hird of Somalia and close to half of the co untry's coastline. A p proximately 3 m illion people are estimated to live and w ork in Puntland, incl u ding an influx of seekers of safe home and economic migrants from other parts of the country. T here is a f unctioning constit utional government w ith security forces and so und p ublic finance management. T he report on the first 100 days in office by the incumbent administration p ublishe d in A pril 2009 has been w ell recei ved both at home and abroad. T herefore, w e belie ve that it is t he responsibility of this go vernment to keep its citizens informe d and up dated on the achie vements and the challenges faced d uring the first year of its existence as w ell as the challenges ahea d. Puntland has w orked to w ards f ulfilling priority com mitments identified at the beginning of this adm inistration, such as security, p ublic finance management, democratization and im p roving t he social sector services, H o w ever, t he international com m unity has done very little to fulfill its p ledges to sup port Puntland to ad dress its priority needs.

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2. STATE SECURITY T he ne w government of Puntland set securit y as its first priorit y and started to reorganize la w enforcement instit utions as reported in t he first 100 da ys of the ne w administration. T he reorganization included to demobilize the excessi ve militia forces to red uce it to an affordable size. A major government achie vement in t his sector w as to pay salaries and other necessary costs to all securit y forces, together w ith other government instit utions, thro ugho ut the 2009. T he com mitment of the government to reinforce the security of the State w as not lim ited only to reforming t he security forces, b ut also to resol ving com m unity conflicts, mainly in the regions of M ud ug and Bari. · In the M ud ug region, after the assassination of the former Information and Telecom m unication M inister and t he region became v ulnerable to open com m unity conflict, a high delegation heade d by the President spent in G alkacyo more than fi ve w eeks from A ug ust and September, 2009 for conflict pre vention and com m unity relationship harmonization w ith the follo w ing o utcome: · · A com m unity-w ide a w areness cam paign w as carrie d o ut by the delegation. It w as Fostered an all inclusi ve regional administration that resulte d i n com m unity selection of local Co uncil for G alka yo district and election of a ne w M ayor and local co uncil chairperson. · · It w as ap pointed a ne w Governor for M ud ug region. It w as a arrested the former M ud ug governor w ho w as allegedly blame d of being part of the insecurity of G alka yo and w ho w as later on tried an d sentenced. · · It w as ap pointed a ne w Puntland Police Com missioner, M ud ug regional Police and station com manders. It w as Identified the perpetrators of the M inister's assassination w ho w ere later on sentenced in their absence. In t he Bari region a more than year old com m unity conflict, w hich started in 2008, and com promising the region's security, com pelle d the government to intervene w it h deployment of D ara w ishta forces to im plement ceasefire and subseq uently fostered com m unity-w ide peace p rocess, w hich resulted a benchmark reconciliation agreement in D ecember 2009?

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D espite all these positi ve efforts Puntland is yet to be im m une from the general insecurit y that is taking place in other parts of the co untry. T he brutal terroristic operations cond ucted in many parts of the central regions and M ogad ishu does not constit ute a looming t hreat only to Somalia b ut also to the w hole of the H orn and Yemen across the G ulf of A den if not tackled in time. T he t w isted p hilosophy of these lethal gro ups and their ind iscriminate dea dly killings goes against Islam theology, humanity and the Somali cult ure as w ell. A series of politically motivated selecti ve assassinations and exp losions, w hich took place recently in P untland, w ere aimed at destabilizing and com promising t he securit y of the State, but Puntland government and its people w o uld not succumb to the co w ardly criminal plots to discred it its achie vements. M ost of the perpetrators of these crim inal acti vities are ap p rehende d, held in custod y or alrea d y sentence d. T he government has undertaken acti vities aime d at em po w ering the instit utional capacity of the la w enforcement establishments, provid ing incenti ves to upgrade the forces and t he instit utions. T he government tightene d t he securit y of the major urban centers. W hile the crisis in the So ut h deepens, Puntland experiences an influx of I D Ps most of w hom being economic m igrants, causing a concern for o ur securit y. Some of these ne w arri vals are not genuine I D Ps and pose real security challenges to Puntland. T he Puntland Intelligence Service "PIS" has undergone extensi ve reform to streamline to the broad intelligence net w ork and securit y forces and it w as renamed as Puntland Intelligence Agency "PIA" working side by side w ith other government agencies. 3. RESPONSE TO PIRACY Piracy remains a securit y threat thro ugho ut the world and Puntland Government is com mitted to fight and event ually defeat it. Puntland stands a pioneer to fight piracy w itho ut any external sup port. In this context an article recently p ublished in a magazine reads:

"In any serious attempt to combat piracy, Puntland must play an integral role, yet is not recognized as a legitimate actor in the region and has been financially abandoned by the International community, which continues to ignore the reality on the ground."-Business daily, January 5, 2009 by Reuters.

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A chie vements in this regard incl ude: · E m po w ering its la w enforcement instit utions. · E ngaging com m unity leaders, traditional elders and Islam ic scholars to disco urage ne w recruits and con vince pirates to quit, · D etaining over 200 pirates and im po unding 21 boats, 8 vehicles and large q uantity of arms and am m unitions from the pirates. · · Com pelling the b ulk of the pirates acti vates to shift else w here, a w ay from their habit ual safe ha vens, such as E yl d istrict. M anaging to free hostages and repossessing t wo fishing boats belonging to neighboring Yemeni and O mani fishermen recently capt ure d b y p irates in E yl and Las-kora y d istricts · Recognizes the im portance of ending im p unit y of the pirates.

A major obstacle to fight against piracy is the ransom pa yment solicited by brokers and paid b y ship o w ners and insurance com panies. Puntland policy in t his regard is nonransom pa yment as t his practice enco urages more pirate recruitment and association of these criminal acti vities by other terrorist groups operating in Somalia. 4. HUM A N TRAFFICKIN G H uman sm uggling is a chronic problem and has been a frustrating factor to Puntland security. A nd Puntland strongly condem ns it. T he p henomena started after the ci vil w ar intensified in the co untry. Puntland Go vernment spends its o w n limited reso urces to fight against human trafficking, w hich is causing a great traged y, primarily to the people from so uth-central Somalia and Ethiopians, w ho enter t he co untry as illegal migrants. T he I D Ps after accum ulating eno ugh mone y from manual labor try to make the risk jo urne y to cross the G ulf of A den. E ventho ugh Puntland security forces cond ucted extensi ve operation to tackle the problem, by seized sm ugglers boats and other eq uip ments and also deporting many of them to Ethiopia and their original places in Somalia. To halt permanently the p roblem of human sm uggling is far be yond t he capacity of Puntland. 5. IDPs PROBLEMS IN PUNTLA N D Puntland has al w a ys p ro vided sanct uary to persons affected by conflicts and w ill continue to providing sanct uary to legitimate I D Ps. T hese I D Ps are from the sout hern and central regions as w ell as illegal im m igrants mainly from Ethiopia. Presently, these economic migrants are estimated aro und 300,000 4|Page

people concentrated mainly in the major to w ns of Puntland, such as G alkayo, G aro w e and Bossaso, but also are li ving in e very w here in Puntland. M ost of these people are from Bay, Bakool, H iran, Lo w er Jubba (K ismayo) and Banad ir (M ogadishu) regions of so uth-central Somalia. T he I D P sit uation constitutes an economic b urden to Puntland and also bro ught social p roblems, includ ing health and sanitation, shelter and securit y problems. T his issue poses a securit y threat to the stability of Puntland since some of the I D Ps ha ve been associated w it h extrem ist gro ups in the so ut h-central zones of Somalia. E lements in the I D Ps ha ve com mitted politically motivated assassinations and some of them w ere allegedly fo und p lotting to destabilize the co untry. Puntland government belie ves that stronger measures and reso urces are nee ded to ad dress t his gro w ing problem. 6. D IPLO M ATIC INITIATIVES T he administration has taken extensi ve dip lomatic efforts to promote Puntland p rogress and ad vocated strongly to seek possible solutions for the ever-w orsening Somali crisis and to clarif y its political position in t his regard. A high le vel delegation le d by t he President A bdirahman M oham ud M ohame d visited the U nited States on June 2009 and deli vered speeches in d ifferent forums. T he President testified in front of the US A H ouse Com mittee on Foreign Relations, subcom mittee on A frica and G lobal H ealth on 25 of June on p rospects for lasting peace and unified response to extrem ism and terrorism. T his w as a uniq ue op port unity for Puntland and t he President's speech w as w ell recei ve d b y t he aud ience. T he President also visited M innesota State w here t he largest Somali com m unity resides and made a remarkable speech at the M innesota State U ni versity. T he visit of the President re-energize d Puntland overseas com m unities and pa ve d the w ay to activate Puntland D iaspora Forum in N orth A merica and E urope. T he president's delegation got an in vitation from the Puntland com m unity in London and ha d the p ri vilege to visit the lead ing U K T hink-tank of C hattam H o use w here he made a key note speech. Similar positi ve visits w ere paid also to A d d is-A baba, D jibouti, N airobi and D ubai w here close relationships de veloped w ith the co untries in region.

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7. PUNTLA N D-TFG RELATIOSHIP Puntland w as and still is the backbone of the T F G struct ure and belie ves Federalism is the only viable system for political solution for Somalia, based on a bottom-up ap p roach of administration reb uild ing. Puntland ack no w ledges the urgent need for the participatory form ulation of a federal constit ution to smoothen w orking relationships bet w een the T F G and Puntland and other yet to emerge regional States. In A ug ust 23, 2009 Puntland signe d w ith the T F G a historic cooperation agreement w hen a high le vel delegation led by t he p rime M inister of the Transitional Fe deral Government (T F G) visited G alka yo. T he agreement ad dressed many im portant issues, such as securit y and p iracy, social-sector, develop ment and international relations. A ke y point of the agree ment w as the T F G recognition of Puntland being a peacef ul place, w hich co uld be em ulated by other f ut ure federal states. O n 12th N ovember 2009, the President of the Puntland State of Somalia met in N airobi w ith t he President of Transitional Federal Government H .E. Sharif Sheik h A hme d. U nfort unately the T F G president expressed reservations w it h regard to the legally binding G alka yo protocol, other national issues and Puntland de velop ment programs. 8. PUBLIC FIN A NCE Since the 100 days report of this adm inistration in office w as p ublished in A pril 2009, numero us im p rovements ha ve taken p lace in the Public F inance sector. T he M inistry of Finance has carrie d o ut im pro vements in p rovid ing efficient performance ap p raisal, w hich led to enhance the re ven ue collection capacity of the M inistry. In a d d ition to outlining Job descriptions, the M inistry laid off re d undant and incom petent staff, giving w ay to the placement of q ualifie d human reso urce in im portant positions of re venue collection. F urthermore, the enhancement of ad herence to the M inisterial policies and codes of cond uct w as done thro ugh sensitization seminars for t he staff. Besides this, the staff of the M inistry w ere gi ven in-ho use trainings and p ro vided w ith w orkshops aimed at strengthening their operational capacity and basic ministerial infrastruct ure. To im prove re venue collection in the transport sector, the M inistry of Finance entere d an agreement of partnership w ith the M inistry of Public w orks and Transport and a pri vate technical com pany called PIIT E C H . T he partnership de veloped ne w documentation for vehicle circulation, vehicle licensing and road tax management. T he 6|Page

ne w documentation w ill be com p uterize d in a data base system located in t he ministry of Public W orks and Transport com pound. This system replaces p re vio us hand-w ritten documentation system that co uld ha ve easily been forged. T his ne w system w ill also contrib ute to the securit y as it easies the identification of the vehicle o w ners In a bid to replace the current unitary tax system w ith an ad valorem system, w hich is according to value of the item, the M inistry of Finance has de veloped a ne w method based on an ad valorem system of taxation, w hich is read y to be introd uced as soon as possible. A t the inception of this a dm inistration, the initial b udget estimate w as thirty-t w o billion Somali shillings per month for the first quarter of 2009. T he M inistry of Finance undertook strong measures for the collection of the re venue, raising taxes on some nonessential items, adjusting inflation rate based on tax collection. T hese ne w measures bro ught a ne w b udget estimate of about 53b Somali shillings, w hich is 66% increase. A b udgetary re vie w for the final q uarter of the year p rod uced a f urther increase of the b udget by 7.5%. T he b udget incre ment of the last three q uarters of 2009 has bro ught an increase of salaries for p ublic em ployees and securit y forces. T he salary increment ranges bet w een 20% to 85%, according to the basic earning, gi ving p ri vilege to the lo w er income earners. T his enables to enhance t heir p urchasing po w er, w hile t he essential items taxation w as not increased. B udgetary preparation for the 2009/2010 takes a ne w form as more participatory methodology is being ap plied w ith the p rioritization of collection of inp ut from all stakeholders and t he macro-economic unit at the M inistry of Planning and International Co-operation p rovid ing economic forecasts and recom mendations for dealing w it h inflation. T herefore, the 2010 b udget has been forecasted to be 62.520b Somali Shillings, w hich carries 9% more increment. 2010 budget ma y f urt her bring an increment depend ing f urther im p ro vement of reven ue collection system, w hich w ill increase expend it ure on social sector and infrastruct ure develop ment. H ad upgrad ing of security forces, fighting against piracy and an expected expen dit ure for security issues not occurre d t he extra collected re venue w o uld ha ve contrib ute d significantly to social de velop ment initiati ves. 9. MINERAL A N D PETROLEUM EXPLORATION Re vie w and Re-negotiation of M ineral and Petrole um exp loration agreement, bet w een foreign com panies and Puntland government, w as one of the priorities in t he ne w administration's program in 2009. T his w as motivated by a major p ublic concern, w hich 7|Page

created tensions w it hin the society resulting from the ratification of a Prod uction Sharing A greement "PS A " by the pre vio us ad ministration. T he incumbent adm inistrations p ut efforts, aim ing to amend many articles in the pre vio us PS A . T hro ugh consultation and retaining international legal experts, the incumbent administration conclude d an agreed upon amendment to the PS A , w hich w as presented to the cabinet and parliament w here it w as overw helm ingly sup ported and ap pro ved by both organs. 10. DEM OCRATIZATIO N PROCESS T he democratization of the political system of Puntland feat ured at the top of the tasks of the first administration of Puntland since 1998. H o w ever, d ue to confluence of vario us factors, Puntland is still in transition to fully fledged democracy to be exercise d thro ugh m ulti-party system. A ltho ugh the former ad ministration of Puntland ha d issued a presidential decree that ha d define d a general road map of the democratization process, by D ecember 2006, it ha d only succeede d to accom plish the technical Re vie w of the Pro visional Constit ution of Puntland of 2001. T he current adm inistration firm l y belie ves t hat f urt her dela y of the democratization process to accom plish the major targets d uring the first t wo years in office w ould com promise the ple dge of the government to p ut in p lace the system w ithin first t w o years of its mandate. A s an indication of the le vel of com mitment of the government, a M inister of State for D emocratization and Federal A ffairs has been ap pointed. T he efforts of the last year prod uce d a com plete constit ution re vie w w here by both the cabinet and parliament has ap prove d the amendments in D ecember, 2009. A nother major step w as the introd uction of the Puntland Flag and E mblem as a result of p ublic participation to choice ap propriate design and feat ures, then ap pro ved by the cabinet and the parliament. T he democratic f ut ure for the Puntland State of Somalia looks very promising w ith plans: · D rafting electoral la ws · · · · · Formation of electoral com mission Public referend um for the constitution, Establishment of Political parties E lections for the local Councils and Legislati ve organ and Presidential election for the next term

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11. SOCIAL SERVICES In Puntland social service deli verance has made remarkable im pro vement d uring the first year of this administration. 11.1 Education | Steps ha ve been taken forw ard by t he M inister of ed ucation to analyz e the state of ed ucation in Puntland w here he re ported to the Co uncil of M inisters to ha ve found a dismal sit uation. T he M inistry is carrying f undamental ed ucation sector reform, w hich has beg un alread y. F undamental ed ucation reform has been done in this sector w ith the follo w ing achie vements: · · · · · · H armonization of the secondary school curricul um. E d ucation b udget increased and 200 teachers recruited A ccred itation for Puntland Secondary and Primary Certificates in neighboring co untries A considerable number of scholarships ha ve been secured from Yemen and Sudan and d istrib uted on a merit basis. Increments in E C funded projects w ere achie ve d Efficient A dministration and Finance struct ures introd uce d.

T he harmonization of the curricul um and the official recognition of the Puntland certificates by a number of co untries is indee d a great step to w ards the achie ve ment of the national vision and w ill enable Puntland st udents to p ursue their higher ed ucation. D uring first q uarter of the 2010, the M inistry of ed ucation is planning to revie w ed ucation and Teacher T raining policies and de velop the ed ucation A ct and t he E d ucation Strategic Plan. It is also in the plan of the M inistry of ed ucation to recruit 200 more teachers t his year and carry o ut com prehensi ve curriculum re vie w in the year 2010. F urt hermore, the M inistry of E d ucation intends to seek more scholarships and recruit highly q ualifie d ed ucation experts in key departments to facilitate ed ucation q uality im pro vement. O ther ke y priorities include; increase access to ed ucation, to introd uce ne w skills training p rograms and establish an internal reso urce pool for ed ucation f unds. O ne of the ke y challenges in the ed ucation sector remains the limited number of q ualifie d teachers and the lim ited reso urces for ed ucation materials.

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11.2 HealthCare | T he health system and service deli very is an obligation of the M inistry of H ealth in Puntland and the follo w ing p riority areas of health system de velop ment, such as healt h technology and medicines, human reso urce de velop ment and health care deli very ha ve been covere d. · H ealth system and service deli very mainly achie ve d the standard ization of information management system in all hospitals and M C H S in t he Puntland State of Somalia in harmony to the national system. · T he Puntland healt h sector recei ved 24 refrigerators and freezers for im m unization. A f ully eq uip ped malaria referral lab w as installe d. V accines for H 1 N 1, H epatitis B and Yello w fever w ere introd uce d. · 115 personnel took in-service training w hile 31 laboratory technicians grad uated successf ully · T he construction of 3 ne w TB centers in the to w ns of Q ard ho, Baran and G aldogob and Four (4) M other-to-C hild H ealth centers w ith o ut-patient departments highlighted the achie ve ments. · A presidential initiati ve sup ported b y t he pri vate sector in Bosaso recei ve d eno ugh f unds to carry the construction of t w o story b uilding of 100 beds to increase the capacity of Bosaso p ublic hospital.

12. PUNTLA N D AIDS CO M MISSION (PAC)

Puntlan d A I DS com mission (P A C), established for the coordination, harmonization, synchronization, management an d monitoring the em ploy ment of H I V / A I DS activ ities, in partnership w ith the international agencies have con d ucted extensive a w areness cam paign to prevent the spread of the v irus. The areas that need support in the coming years include strengthening of the regional A I DS Com mittees, data collection an d analysis systems, ad ditional sup port to the most-at-risk pop ulation, mainstreaming H I V program me w ith the line ministries an d private sectors.

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13. PUNTLA N D A GENCY FOR SOCIAL WELFARE (PASWE) P A SW E w as established d ue to the unp recedented increase in the number of d isp lace d persons w ho are in desperate nee d of basic h uman services. A nother reason for its establishment w as an upsurge in t he n umber of v ulnerable gro ups like D isabled gro ups, orphans, street children, and w omen w itho ut sup port in the co untry. D ue to these pre vailing circumstances, the government of Puntland ap pointed Puntland A gency for Social W elfare "P A SW E " to deal w ith the problem of the less fort unate and v ulnerable members of the society. P A SW E is run by a Board of D irectors composed of 16 major stakeholders; includ ing the M inistry of Justice, the M inistry of E d ucation and the M inistry of H ealth, t w o from the C i vil Society gro ups, N ine from B usiness com m unities and t w o from religio us gro up. P A SW E sup ports more t han 1,000 O rp hans and disabled people in Puntland w ith $35 monthly to each of these d isad vantaged gro u ps donated by the Puntland government. P A SW E has opene d a small mental health centre in the Bosaso main H ospital com pound. A nother mental health center is under construction in G aro w e. To fulfill its mission this agency needs genero us endo w ments both from local com m unit y and international philant hropists.

14. INFRASTRUCTURE A nother ke y de velop ment that has taken place w it hin t he last year in terms of infrastruct ure reb uild ing, under t he g uidance of the ministry of Public W orks and Transport and the M inistry of the C i vil A viation and A irports include: · · · · Installation of traffic signs for the north-so ut h high w ay w hich connects Bosaso to G alkaio in collaboration w ith the b usiness com m unity. Continuo us maintenance of the damaged parts of the high w ay. Com pletion of Bosaso airport terminal w ith the introd uction of modern system of im migration management and com pletion of its access road. To obtain I C A O ap p roval certificate soil experiment of the run w a y w as underta ken and recom mendations to repair identifie d damaged spots of the run w ay w as recei ved from I C A O and w ill be im plemented soon. 11 | P a g e

15. CHALLENGES AHEAD

Despite improvement in various sectors of Puntland, including the achievement of some of the priorities in the government's program, there is imminent danger from extremist and terrorists, which has taken root in many parts of the South-Central regions of Somalia. The bigger challenge is balancing Puntland's adherence to international humanitarian laws addressing IDPs and migrants without compromising its obligation of maintaining internal security. Security forces made discoveries of terrorist elements that infiltrated Puntland disguising themselves as genuine IDPs and refuges while perpetuating assassinations targeted at key figures in the Puntland society and planting explosives. Puntland intelligence networks and security forces detained many such criminals, while some were killed by the security forces as they tried to flee from the crime scenes. It is worth noting that AL-Qaeda's proxy in Somalia announced its intentions to overrun peaceful and stable regions of the country. These groups claim that they intend to venture across the Gulf of Aden to support insurgent groups fighting in Yemen. Puntland takes this threat seriously and has intensified its security to defend its borders. On the other hand, piracy has been an international phenomenon making Puntland a victim especially in the security and economy sectors of the State. Puntland invested heavily in the fight against piracy, using its internal resources that could have been invested in other productive sectors of the economy. Another menace, which has drained the meager resource of Puntland, is human trafficking. The daring human trafficking practice in the Gulf of Aden has been responsible for the death of hundreds of people hailing from parts of Southern Somalia and Ethiopia. In a bid to control this social menace, Puntland security forces mounted land and waterfront patrols. This has resulted in the seizure and detention of traffickers as well as their gear. In addition to that, many suspected illegal voyagers were nabbed at checkpoints across Puntland and subsequently deported to the point of entry. The fact that Puntland is a peaceful and stable region attracted an influx of IDPs and economic migrants who pose significant threats to the stability of the country. Therefore, Puntland appeals to regional and international partners to support the state in overcoming the challenges ahead in the following year We urge partners to collaborate in the promotion of the common cause of regional stability.,

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