Hiiraan Online
Thursday, May 7, 2015
Keith Ellison, U.S. Representative for Minnesota's 5th congressional district
WASHINGTON (HOL)---One day after the US secretary of state John Kerry paid a surprise visit to the Somali capital, US congressman Keith Ellison warned the US to protect Somalia's 'hard-fought' fragile gains by reopening Somalia 'lifeline' remittance services after US banks terminated contracts for Somali money transfer companies that sent hundreds of millions to Somalia every month.
Mr. Kerry who held talks with Somali officials at the Mogadishu airport and urged Somali leaders to ensure a better security for the city, saying 'we need to walk downtown next time', however, it's
unclear if the remittances' closure issue was on their agenda. .
"We must ensure Somali-Americans can maintain the ability to send money to their loved ones in Somalia; these remittances add up to $215 million a year, outpacing U.S. foreign aid to the country." Rep. Keith Ellison said in a statement issued on Wednesday.
He called for the Senate to also swiftly confirm the president's nominee to serve as U.S. Ambassador to Somalia Katherine Dhanani, she will be the first U.S. ambassador to Somalia since 1991.
"I'm sure Secretary Kerry left with the same sense of hope for Somalia that I felt during my last visit in 2013."
US banks that handled Somali money transfer services have terminated contracts for the companies over complicated banking regulations and fears about an anti-terror legislation have scared away several other financial institutions.
Somali hawala firms deliver hundreds of millions into the horn of Africa each month, including funds for aid agencies supporting the poor people in the impoverished horn of Africa nation.
The service faces further challenges after the Kenyan government also closed the accounts for 86 individuals, organizations, hotels and remittance companies it accused of being involved in terrorism
activities as parts of anti-terrorism crackdown in the East African nation.
The killing of 148 students by Somalia's Al-Shabab at Garissa, some 120 miles from the border, has piled pressure on President Uhuru Kenyatta to deal with the fighters who have killed more than 400
people in Kenya in the last two years, according to Ajazeera Television.
International organizations including the United Nations and humanitarian workers warned that shutting down the companies will have a huge impact on Somalia as it would cut off a vital lifeline for
Somalis whose anarchic country has no formal banking system.