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From Bad to Worse: Ending cash transfers threatens Somalia’s displaced communities

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MOGADISHU (KAAB TV) – On May 11, the Commissioner of the Somali Disaster Management Agency (SoDMA) announced plans to end the cash transfer programs for displaced communities in Somalia.

This decision comes amidst a worsening humanitarian crisis and pervasive corruption that hampers aid delivery to the most needy.

The announcement was made during a meeting discussing preparations for the Country Humanitarian Forum (CHF). The Commissioner stated that the cash programs for internally displaced persons (IDPs) would be terminated due to their negative impact, as reported in a statement posted on X.

The agency says it has approved a plan to exchange cash for vocational training to achieve financial independence.

Worse outcomes

Humanitarian activists quickly condemned the decision, warning it could lead to even worse outcomes.

“Eliminating cash programs for vulnerable people in IDPs could have serious negative impacts on their capacity to manage their lives in extremely difficult conditions. Therefore, reconsider coordination process and target the right people,” said Mohamed Ibrahim, an advocate for quality healthcare.

Many believe the cash transfer assistance was introduced to prevent the massive diversion of food aid, which had long been exploited by corrupt entities.

Initiated by UN agencies and later adopted by various NGOs, the program provides direct monetary assistance to needy IDPs, including women-headed households.

Humanitarian expert Shirwac Maggan urged SoDMA to address theft and corruption rather than ending the aid.

“IDPs need cash for essentials, not skill programs. SoDMA should address theft, not cease cash aid. Despite 30 years of TVET [technical and vocational education and training], few graduates benefit due to low productivity. Develop better strategies and thoroughly assess aid diversion,” he added.

NGO workers informed Kaab TV that families receive $130 a month to help them buy essential food and water, supplementing their livelihoods.

Humanitarian governance expert Bashir Moalimu emphasized that cash transfers empower needy families by providing them the autonomy to make decisions based on their specific needs and priorities.

“Cash transfers programming give cash recipients autonomy and empower them to make decisions based on their own needs and priorities. Compare to in-kind interventions,” he said.

SoDMA has also faced allegations of aid diversion, a recurring issue raised by MPs and humanitarian groups, which remains unaddressed.

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