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Updated: Oct 7, 2008 - 6:34:18 PM

Somalia

Range Resources donation to Somalia airport questioned
7 Oct 7, 2008 - 5:48:57 PM



GAROWE, Somalia Oct 7 (Garowe Online) - An annual report released by Australian mining firm Range Resources, Ltd., on October 3 details money the company spent in its controversial operations in Somalia. [ READ: Financial Report For the Year Ended 30 June 2008 - *PDF]

On page 38 of the report, Range Resources claims that the company spent US$591,411 to help with the construction of an airport in Garowe, the capital of Puntland region in northern Somalia.

But an official on the Garowe airport construction committee told Radio Garowe that Range "only promised a donation of US$250,000."

Dahir Mohamed "Sanweylod," a committee member, confirmed that Range donated US$250,000, channeled through the Puntland Ministry of Finance, which deducted US$15,000 for unspecified expenses.

"In the end, we [airport committee] received US$235,000 from Range," Mr. Sanweylod said.

He expressed surprise at Range's claim that it donated US$591,411 to the Garowe airport project, saying he is "unaware" of such amount because Range originally agreed to donate only US$250,000.

According to Mr. Sanweylod, the airport construction committee is planning to write a letter to Range Resources asking for full information about the US$591,411 donation the company claims to have paid for the Garowe airport project.

Garowe Online sent an inquiry to Range Resources on this story but has not received a reply yet.

Separately, Range's annual report stated that Mr. Liban Muse Bogor – was then a member of Range’s Board of Directors – was paid handsomely for his services.

Mr. Bogor collected US$196,935 in 2007 paychecks, while receiving US$280,962 in 2008, according to page 14 of Range's annual report.

He resigned from the Board of Directors in July, after being involved in Range's oil exploration efforts in Puntland since mid-2005. [ READ: Puntland ruler's relative resigns from Range Resources]

Disclosure of Mr. Bogor's extravagant paychecks comes at a time when the Puntland government has failed to pay for the services of its employees, including civil servants and the security forces.

Critics say foreign companies with controversial exploration contracts in Puntland have donated funds before, but the money was mismanaged by local officials.

Since there is no accountability in Somalia, critics called for Western governments to hold to account companies dealing with corrupt officials in the war-torn Horn of Africa country.

Source: Garowe Online