Posts Tagged ‘al-Shabaab’

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Claim: al-Shabaab financiers tend to come from one clan

August 19, 2014

Money Jihad cannot confirm the accuracy of a recent claim that financiers of the al-Shabaab terrorist organization tend to come from the Hawiye—the dominant clan in Mogadishu.

A Somali news site says it investigated al-Shabaab’s funding for six months and identified 10 entrepreneurs from various Hawiye sub-clans working in Somalia, Kenya, and Dubai who allegedly fund al-Shabaab. Money from the businessmen is said to be routed through Sheikh Yusuf Sheikh Issa, a.k.a. “Kabkutukade,” but separate media accounts appear to contradict that statement by reporting that Kabkutukade was jailed a year ago.

There is some corroboration that one of the men named in the article, referred to as “Muse Mohammed Ganjab,” does indeed have militant connections. The Times recently reported that “Musa Haji Mohamed Ganjab,” an adviser to Somali president Hassan Sheikh Mohamud, sent an arms shipment to al-Shabaab weeks after the terror siege of the Westgate mall in Nairobi, Kenya, and that he personally delayed an attack against an al-Shabaab base in Barawe.

There is also some indication of Hawiye roots and connections to al-Shabaab: the Jamestown Foundation says that the Islamic Union of Courts and its al-Shabaab offshoot were initially criticized as a Hawiye clan militia, the website Terror Free Somalia has previously noted that al-Shabaab’s sanctioned leaders are “mostly Hawiye,” and the Somalia Report says that al-Shabaab used to be referred to as a Hawiye clan based group. But it is also possible that some claims originate from rival clans, and al-Shabaab has members and supporters from non-Hawiye clans as well.

Nevertheless, the tribal connections are mostly immaterial, since al-Shabaab is, at its core, a jihadist group aligned primarily around its belief in fundamentalist Islam, and not along clan lineage.

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Al-Shabaab profits from Somali telecom sector

August 18, 2014

Without a stable central government, Somalia’s telecommunications network has been unregulated for decades.  This has allowed for tremendous growth and fairly low prices for phone and Internet access in Somalia compared to neighboring countries.

However, this has also created a Wild West atmosphere of clan elders and businessmen in Mogadishu cutting deals with international—often Saudi-backed—telecommunications providers like Arabsat.  Arabsat is based in Saudi Arabia and is owned by the Arab League.  In addition to providing phone coverage, Arabsat’s satellites host television broadcasts by well-known hate channels Al Manar and Al-Aqsa.

The government of Somalia has made attempts recently to begin taxing and regulating the telecommunications industry, but the bigger factors at play are the taxes you don’t see.  Some evidence suggests that informal licenses are granted by warlords or businessmen in exchange for bribes paid behind the scenes.

Reporting from the Gulf News earlier this year went even farther, suggesting that the warlords allow the telecoms to over-charge customers so they can pocket the difference or pay off al-Shabaab too:

…By persuading other telcos worldwide to clip the ticket for them, these [Somali telecommunications providers] groups has [sic] become wealthy enough to avoid attempts by government and the regulatory International Telecommunication Union (ITU) to rein them in.

Not only do these groups exploit vulnerable customers charging them often beyond their means and disproportionate to costs, there are also suspicions that some sponsor the terrorist scourge, Al Shabaab.

By negotiating with foreign companies to charge above the usual rates and to put money collected into overseas funds, these “companies” avoid tax — and have sufficient clout to offer deals to favoured factions, or fund groups they believe will deliver a government suited to their economic or ideological aims…

There are also rumors of relationships between, or at least pressure exerted by, al-Shabaab on several specific Somali telecommunications companies including Hormuud Telecom.  RBC Radio reported this year that, “Al Shabab has closed down Hormuud Telecom Company’s branch in Jilib town, Middle Jubba region after the company failed to pay $50,000 which Al Shabab demanded from local companies,” and added that, “Extorting money from private business companies and aid agencies operating in Somalia is seen as the biggest source of investment for Al Shabab’s war with the government.”  Some sources have gone further, describing Hormuud as “al-Shabaab’s messenger” or “the phone of death” taking its cues from al-Shabaab.

In October 2011, Hormuud was allowed to remain in operation while two rival companies were closed by al-Shabaab.  One of those rivals, Nationlink Telecom, eventually reopened after allegedly paying $30,000 to al-Shabaab to resume operations.  An al-Shabaab member told the Somalia Report that non-cooperative companies would be forced to close “until their managers agree to pay taxation for the war against the infidels as well as the crusaders.”

While it is possible that some of the claims about the telecommunications business in Somalia have been exaggerated due to clan or business rivalries, former al-Shabaab commander Mohamed Farah Al-Ansari confirmed the role of extortion against Somali telecommunications companies in funding al-Shabaab in an interview with Voice of America last year.

There are enough grounds for concern that international investors and corporations would do well to examine any business deals with Somali telecommunications companies with the utmost caution.  Similar to the risks of doing business with the money transfer company Dahabshiil, the taint of al-Shabaab is simply too strong to ignore.

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Somali in Holland funded al-Shabaab

August 4, 2014

Farhia Hassan, a Somali living in the Netherlands, has been arrested as part of a U.S. sting against an international cell of East African women who financed al-Shabaab. Additional arrests were made in Virginia and Washington state. The women sent the money back home to “brothers in the mountains,”—al Shabaab fighters in Somalia. The money was transferred in small increments probably to avoid scrutiny. Hassan is said to be pregnant, which her lawyers will probably use to argue against her extradition.

Thanks to Theo Prinse for sending over the story from Omroep Zeeland. An English account of the development comes from DutchNews:

Dutch Somali woman faces deportation to US over terrorist funding

A 30-year-old woman who lives in Terneuzen faces extradition to the US on charges of helping finance the al-Shabaab terror group.

The woman was arrested on Wednesday on the request of the US authorities, the public prosecution department said.

The woman, who was born in Somalia, has Dutch nationality. She will appear in court on Friday and the US has requested her extradition, the prosecution department said.

Brothers

The US department of justice said in a statement that two other women from Kenya and Somalia were also arrested in the US on Wednesday and two more remain ‘fugitives’.

Three defendants who were arrested face charges of providing material support to al-Shabaab, a designated foreign terrorist organisation that is conducting a violent insurgency campaign in Somalia’, the statement said.

The statement said the women referred to the money they sent overseas as ‘living expenses,’ and they repeatedly used code words such as ‘orphans’ and ‘brothers in the mountains’ to refer to al-Shabaab fighters, and ‘camels’ to refer to trucks needed by al-Shabaab.

The money transfers often were broken down into small amounts as low as $50 or $100, and the funds were intended for use by al-Shabaab insurgents operating in Somalia…

Prior Money Jihad coverage of terror financing based in the Netherlands is here. Posts about the financing of al-Shabaab are here. See this and these for the use of “orphans” as code for terrorist financing.  The AP and the Washington D.C. affiliate of ABC News have more information on the arrests here.

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Dahabshiil offices closed for skipping payment to al-Shabaab

July 26, 2014

Somali news outlets reported on July 12 that several Dahabshiil offices in southern Somalia were ordered to close after the money transfer company failed to make required “sako” [zakat] payments to the al-Shabaab terrorist organization.

According to Radio Kulmiye, Middle and Lower Juba offices in Bu’aale, Saakoow, Salagle, and Jilib have been ordered to close. The same development was also reported by Shiniile News, and the website Dayniile says that “feet dragging” by Dahabshiil on making the payments is what prompted the closures.

According to some Somali news outlets, Dahabshiil routinely gives money to al-Shabaab, which the remittance company denies. For whatever reason, payments are occasionally decreased or delayed, and al-Shabaab threatens Dahabshiil in order for payments to resume. The most noteworthy example of this was the April 2, 2013, bombing by al-Shabaab of Dahabshiil’s office in Mogadishu because of a short payment.

The reason you haven’t read about this elsewhere is because English-language media simply don’t report on Dahabshiil’s ongoing financial relationship with al-Shabaab. But the compliance division of Barclays bank is likely aware of such reports, which has why it has tried desperately and rightly to sever ties with Dahabshiil.

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Singer shot dead after saying Somali bank funds terror

July 25, 2014
Somali super star singer

MP Saado Ali Warsame

Saado Ali Warsame, a well-known singer and member of parliament in Somali, was assassinated Wednesday on the streets of Mogadishu near the Ambassador Hotel. The jihadist organization Al-Shabaab claimed responsibility for the murder.

The BBC reports that “a spokesman for the Islamist al-Shabab group, Abdulaziz Abu Musab, told the BBC that she was targeted for her politics.”

Warsame herself believed that a bounty was offered for her killing by Dahabshiil, a UAE-based money transfer business that operates primarily in Somalia. In 2013, the news website Suna Times reported that Warsame had “accused Dahabshiil of putting a two million dollar bounty for her death, shortly after she released a song called Dahabshiil ha dhigan (‘Don’t Deposit with Dahabshiil’).” Money Jihad has been one of the only other English-language websites to cover those allegations.  Dahabshiil’s attorneys have previously denied the allegations in correspondence with Money Jihad.

Warsame’s album warned fans about Dahabshiil’s ‘linkage to tribalism and extremism,’ and satirized the company’s name, which means “goldsmith” by calling it Dhiigshiil, which means “bloodsmith.” Dahabshiil makes regular payments to al-Shabaab.

A dual U.S. citizen, Warsame’s family should demand a full investigation by federal authorities, and the family should consider legal action against the perpetrators.

Despite all the warning signs, prominent charities and spokesmen such as Olympics medalist Mo Farah have insisted that Barclays bank continue offering remittance services in conjunction with Dahabshiil. Those advocates for partnership with Dahabshiil should review this tragic case of Ms. Warsame.

Speaking at her funeral, Prime Minister Abdiweli Sheikh Ahmed said, “We will never stop to hunt the criminals and we will punish them.” Let’s hope that is the case. Another East African musician, Nimo Djama, has also sung out against Dahabshiil’s role in terrorist financing. Officials in the UK and U.S. need to wake up about the threat of Dahabshiil before this happens again.

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Gulf charcoal purchases prop up al-Shabaab

July 7, 2014

Money Jihad has long reported on how al-Shabaab profits from Somalia’s charcoal smuggling business, particularly by charging a checkpoint tax authorized by Islamic law. A new report from the United Nations Environmental Programme and Interpol confirms that this activity is ongoing despite a UN ban against Somali charcoal exports, saying that “Al Shabaab retains about one third of the [charcoal] income, which alone constitutes about USD 38–56 million” annually.

A map in the report shows a key al-Shabaab tax checkpoint at Buulo Xaaji, main points of embarkation from Kismayo and Barawe, major delivery locations at Jizan (Saudi Arabia), Dubai and Sharjah (UAE), and Khasab (Oman), with additional deliveries in Egypt, Yemen, and Kuwait.

Somali charcoal exports

In addition to “normal” smuggling of charcoal from Somalia to the Gulf states, it is Money Jihad’s belief that rampant trade-based money laundering is occurring between al-Shabaab and these states in which wealthy Arabs are transferring funds to al-Shabaab through over-invoicing for charcoal purchased. In other words, terror financiers in the UAE and Saudi Arabia are intentionally overpaying for Somali charcoal as a means of funding al-Shabaab without simple detection. The Gulf states are doing this to pursue larger strategic interests in Africa.

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