Thursday, November 6, 2014
Press Release
London, England - Somali remittance is vital lifeline to millions of families in Somalia to meet their daily necessities: to feed their children, to care for their elders and to educate the next generation. The hawala system is the only channel for Somali Diaspora members to support their loved ones in Somalia and other regions.
The entire country relies on remittance and the highest percentage of households is led by women who will not be able to feed their children, clothe them or take them to school. An entire generation’s educational welfare and wellbeing is at stake. Families tend to share what little remittance they are sent with extended relatives and communities and they cannot afford to have their income cut. People will not be able to afford health care. They will starve to death.
There is a danger of undermining Somali’s lifeline of transferring money and the result is dire consequences for those who rely on their relatives’ support for their livelihood, if banks continue to close remittance accounts.
Australia’s Somali community is the current target as the last Australian bank to allow money transfers to Somalia threatens to shut remittance accounts over unfounded fears the money flowing into Somalia is going into the wrong hands. Australian banks have not reported any breaches of financial regulations and closing the last remittance account at Westpac is merely an aversion to risk on the part of the bank.
If there is no reprieve by Australia’s Westpac, 10,000 Somali Australians will not be able to send much needed money for families to survive. You cannot just stop people’s source of survival. As there is no other source of income for most of those likely affected families, interfering with the flow of income will severely impact people’s lives, especially the most vulnerable: women, children, and elders. This is a breach of their human rights.
Global Somali Diaspora (GSD) is seriously concerned about Australia’s situation. Nur Fiqi Osman a GSD board member, who is based in Melbourne, stated “Remittances are vital for Somalia’s fragile economy and its ability to feed and sustain itself. The remittances are used for the purchase of staple foods like sorghum and maize, sugar and flour and tend to have a multiplier effect in local communities; indirectly benefiting households that do not receive remittances themselves.”
GSD Australia Team added “Money transfer operators followed Australian regulations and were frustrated that they have not been given a reason for the decision by the bank.”
GSD Australia Team is working with the Somali Remittance Action Group to stop this drastic and unnecessary decision as it is putting lives at risk.
GSD urges the Australian Federal Government to intervene in this issue and to provide a long term solution that keeps open this vital lifeline for Somalis who rely on remittance to meet their most basic of needs. The government of Australia must ensure the Somali community are able to send their hard earned money to Somalia so that their relatives have access to food, shelter, clothing, education, health and other basic necessities.
Media Contact:
[email protected]
www.gsd.so