(SomaliNet) After many months of back and forth negotiations, Puntland regional administration and the federal government of Somalia reached a settlement in which Puntland agreed to allocate long-term financial support for the interim government. In return, the federal government will not object Puntland's quest for oil and gas explorations which involve foreign companies.
Puntland has been one the federal government's key financial pillars since its inception last 2004 in Nairobi, Kenya.
Many insiders believe President Abdulahi Yusuf beat his many opponents when he was running for the office because of unsurpassed donations from Puntland administration. Mr. Yusuf ruled Puntland before he was elected as Somalia president in October 2004.
According senior federal government official involved in the negotiations, Mr. Ali Ismail Abdi-Giir, Puntland's financial backing of the federal government is now official and most important points of the agreement are in public domain. Mr. Giir, who talked to SomaliNet's Mohamed Siidi at Jowhar airport, said the federal government and Puntland signed a deal that benefits both sides of the table. The final agreement was signed on December 23rd, 2005.