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Somali bank resumes semi-annual, half-million dollar payments to al-Shabaab

May 9, 2013

An international Somali-based financial institution is reported to have resumed its recurring transfers of $500,000 twice a year to the al-Shabaab terrorist organization.  The longstanding transfers of money from Dahabshiil to al-Shabaab had allegedly stopped temporarily during a dispute between the bank and the jihadist group.

The allegation that payments have resumed is based on Somali radio and Internet sources, but the text of the news report appears to be available only on YouTube, which is one of the few web outlets that has escaped Dahabshiil’s history of attempts to eliminate negative Internet search.
 

Dahabshiil pays half a million dollar to Al Shabab as a tax- Report

Published on Apr 29, 2013

Spokesman of Al Shabab’s Somalia Mukhtar Robow faction told the media that the dispute they’ve had with Dahabshiil has now been resolved.

Al Shabab’s spokesman for operations Abdul aziz abu Musab said Al Shabab accepted the payment of the taxes they used to pay them which is $500,000 for every six months.

“Dahabshil renders services to the infidel government and Christian organizations, therefore we had an agreement five years ago which is basically for them to pay half a million dollars in every six months” said abu Musab.

Radio Al Andalus, the mouthpiece of Al Shabab said that the movement took necessary steps against Dahabshiil when the company refused to pay the tax as agreed.

Dahabshiil is facing a lawsuit pertaining to funding terrorist in the Netherlands. Abu Musab’s statement means a clear testimony that Dahabshiil finances terrorist organization.

Furthermore, Al Shabaab Somalia is facing an internal conflict within the leadership. With this regard, it is believed that Dahabshiil has sided with the Godane faction. The Indian Ocean News letter wrote about Dahabshiil’s setbacks with the headline “Series of hard blows for Dahabshiil”.

Dahabshiil has been the forefront of the money transfer business for a long time, but now the company is struggling with numerous difficulties, specially when Al Shabab closed its branches in Hiiraan, Galgaduud, Bay and Bakool regions. On top of that, Al Shabab has recently blasted the HQ of Dahabshiil in Mogadishu ,Somalia which killed head of the company’s security.

Experts say Dahabshiil is quite similar to sheikhs of Al-itisam or Al-itihad. Both organizations used to support Al Shabab but later on decided to revoke their support. Dahabshiil will be forced to pay the extortion money as long as Al Shabab is in Somalia. The credibility of the news of Dahabshiil’s payments to Al Shabab can be seen through Al Shabab’s internet portal somalimemo.netwhich has been writing stories favorable to Dahabshiil in the last couple of days. The website also posted Dahabshiil’s advertisement at the top of the homepage.

Sources: Kalshaale.com, Khaatumo State Of Somalia, Buhodle City Website.

A Minneapolis-based bank, U.S. Bancorp, established a new relationship with Dahabshiil in April to facilitate remittances from Somalis in Minnesota to Somalia.

10 comments

  1. “Dahabshil renders services to the infidel government and Christian organizations, therefore we had an agreement five years ago which is basically for them to pay half a million dollars in every six months” said abu Musab.


  2. […] addition to imposing zakat on commodities such as charcoal and sugar, and extorting funds from Dahabshiil wire service, al-Shabaab may be receiving support from Iran, a designated state sponsor of […]


  3. […] service has funded the terrorist organization al-Shabaab (which is well-known to readers of this blog and to those familiar with Somali finance).  The Somali Channel subsequently removed or altered […]


  4. […] resurgence included an expansion al-Shabaab’s lucrative charcoal smuggling operation, the resumption of payments from the Dahabshiil money service to al-Shabaab, and indirect support from the Gulf.  […]


  5. […] Times, Dahabshiil pays one-half million dollars twice a year to al-Shabaab. The payments allegedly resumed last year after a brief dispute during which Dahabshiil had ceased making payments.  One […]


  6. […] injunction forced their relationship to continue temporarily (despite reports that Dahabshiil pays $1 million to al-Shabaab annually).  Now Barclays and Dahabshiil have struck an agreement which will keep […]


  7. […] money services business (technically a remittance company, not a bank) that pays a $500K stipend twice a year to al-Shabaab. Somali journalists and musicians have alleged that the […]


  8. […] which means “goldsmith” by calling it Dhiigshiil, which means “bloodsmith.” Dahabshiil makes regular payments to […]


  9. […] money services business (technically a remittance company, not a bank) that pays a $500K stipend twice a year to al-Shabaab. Somali journalists and musicians have alleged that the […]


  10. […] to these compliance deficiencies, Money Jihad has previously reported that Dahabshiil makes recurring payments to the al-Shabaab terrorist organization in exchange for the “privilege” of operating […]



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