Government officials and community leaders in Somalia's Puntland region are involved in a dispute about the mismanagement of a US$500,000 donation that was awarded by Africa Oil Corp., a Canadian company which claims to have oil exploration rights in the region.

In May, Africa Oil delivered exploration equipment to Ufeyn district in Bari region and reportedly began exploration activities.

But the district's community elders did not receive the funds and were handed documents confirming that Africa Oil donated the money in two separate installments to Finance Minister Mohamed Gaagaab and Mr. Liban Muse Bogor, insiders told Garowe Online.

The money was supposed to be used for community improvement projects in Ufeyn district.

The revelations have reportedly created friction between Finance Minister Gaagaab and his deputy, Yasin Artan, who is originally from Ufeyn and played a key role in Africa Oil's arrival and operations in the district.

Mr. Artan is frustrated that donations promised to the local community were mismanaged, which has helped stir tension among locals in Ufeyn.

Reliable sources who did not want their name in print told Garowe Online that some of the district's traditional elders have informed IMC - which is contracted by Africa Oil for Puntland operations - to leave Ufeyn district while other voices have called for patience until Puntland President Adde Muse returns from overseas.