An effort by Ethiopia to mediate between the current and former leaders of the self-declared autonomous region of Puntland, northeastern Somalia, has failed, according to local sources.

A local journalist in Bosaso, Puntland's commercial capital, told IRIN on Wednesday that current president, Jama Ali Jama, and former leader, Colonel Abdullahi Yusuf, had been invited to Addis Ababa by the Ethiopian government. However, the two rivals failed to meet in face-to-face talks.

Also speaking from Bosaso, Usman Mahmud, an adviser to Jama, said the Puntland leader had returned home. "The president was disappointed that nothing positive emerged from the mediation," he told IRIN.

Mahmud blamed what he described as "Abdullahi Yusuf's intransigence" for the failure of the talks. He said Jama had been prepared to talk about anything "except the constitution of Puntland". "That would have to be respected, but Abdullahi Yusuf wanted to flout it," Mahmud said.

Abdullahi Yusuf meanwhile returned to his base, Galkayo, on Tuesday, a local journalist in the town told IRIN. Dahir Aflow, of the Galkayo-based weekly 'Bulsho', said that on arrival Abdullahi assured the public he would "protect the safety and security" of the Puntland people. Aflow added that Abdullahi had blamed the failure of the Addis talks on Jama's "refusal" to meet him face to face.

Informed sources in Puntland told IRIN the Ethiopians had proposed that the two enter into a power-sharing arrangement, with Abdullahi Yusuf as president and Jama as prime minister. This was rejected by Jama as "unworkable", the sources said.

"The failure of these talks is likely to lead to more instability and insecurity in Puntland," a Somali political observer told IRIN. However, he downplayed the likelihood of an imminent resumption of hostilities.

Usman Mahmud told IRIN that Jama's Puntland administration "will not undertake any military action against anyone, but is ready and willing to defend itself". Mukhtar Sa'id, a journalist with the Bosaso-based Midnimo radio, said active mobilisation was in progress in and around Bosaso. He said large numbers of militias were being ferried to Qardo, on the road between Bosaso and the regional capital, Garowe, which is controlled by forces loyal to Abdullahi Yusuf.

The Galkayo journalist, Dahir Aflow, said that despite talk of an imminent attack on Bosaso by Abdullahi's forces, "neither side has the ability to sustain a protracted war". He said nearly all the supporters of the two men wanted peace.

"People are fed up with this situation, and just want to get on with their lives," he said. He added that civil society groups were still working hard to find a solution, and "in the final analysis, both men know they cannot win a war and will therefore have to come to the negotiating table".

"I am optimistic that a peaceful resolution will be found, hopefully soon," Aflow concluded.