In his latest report to President Hassan Sheikh, renown corruption fighter MP Dr. Abdillahi Hashi Abib identifies extreme discrepancies in the 2023 Federal Government of Somalia budget.
MP Dr. Abib in a letter to President Hassan Sheikh reminds the President that “prudent financial management is not just a matter of technical necessity but a moral imperative.” He then tells the President that he bears “the ultimate responsibility for ensuring that every shilling of public money is used efficiently and transparently. This requires a steadfast commitment to accountability and integrity at all levels of government.”
MP Abib in his letter to the President continues, “It is crucial for you to understand how imperative accurate and transparent fiscal budget submissions are to the Federal Republic of Somalia’s Parliament. Until you grasp these fundamental concepts, it will be impossible for you to comprehend the gravity of the violations present in the 2023 fiscal budget submission since you appointed most the incompetent and with lack of understanding these fundamentals of economics and financial management the Minister of Finance, Auditor General, Accountant General and Chairman of National Economic Council. The Fiscal Budget of 2023 has failed to meet the basic requirements set forth by the Appropriation Act of 2023 and Public Financial Management Act (PFMA) of 2019 of the Federal Republic of Somalia.
The Minister of Finance and the Accountant General have failed to comply with the Public Financial Management Act of 2019. As of today, the 2023 Financial Statement Report, which was mandated to be published and uploaded on the Office of the Accountant General’s website by April 30, 2024, remains unavailable. This omission constitutes a direct violation of Article 45(1) of the Public Financial Management Act of 2019.
Following agreements with the World Bank and IMF for Debt Relief, the administration employed the budget as a political tool to garner support from international donors. This practice involved inflating revenue projections and expenditure commitments, a clear violation of the Appropriation Act and the Public Financial Management Act. Such actions not only compromised the integrity of Somalia’s financial system but also eroded the trust of both international partners and Somali citizens.
Mr. President, by manipulating budget figures, the administration intended and aimed to secure more grants and support for its political agenda. However, this short-sighted strategy undermined the principles of transparency and accountability. The distortion of financial data to present a misleading picture of economic health jeopardized the credibility of Somalia’s financial management.”
Critical discrepancies in the 2023 Budget are listed as follows:
Financial Statements of 2023 Reports (Internal Revenue and Donor Funds) submitted to the IMF and World Bank are being falsified to meet debt relief and Extended Credit Facility (ECF) review benchmarks.
The SHELL Ep Somalia deposited US$2,674,732 at TSA Account at CBS as Revenue collected 2023 but these amounts were not counted as revenue and were not added on Budget of 2023 as revenue. TSA description does not explain the purpose of the SHELL Ep payment was based on. The same amount was received in 2022 and was never reported as revenue and so far, the Accountant General and Auditor General did not report or investigated where about of these funds and why it is not accounted as revenue by following PFM Act and Appropriation Act.
The Criminal Investigation Department (CID) deposited US$587,180 at TSA Account at CBS as Revenue collected 2023 but these amounts were not counted as revenue and were not added on Budget of 2023 as revenue.
The Notaries Charges deposited US$9,317,029.37 at TSA Account at CBS as Revenue collected 2023 but these amounts were shown on Budget of 2023 as revenue as ZERO. The Accountant General and Auditor General never audited the Notary Deposit whether they properly followed the PFM Act and Appropriation Act rule and the reason why the Ministry of Finance did not report as revenue or where about of these funds.
The QAAD Tax deposited US$15,914,418 at TSA Account at CBS as Revenue collected 2023 but these amounts were shown on Budget of 2023 as revenue as US$20,000,000. US$4,000,000 are either stolen from TSA account or overestimated to show the World Bank and IMF that Internal Revenue have increased.
The Rent of Airport Land, and Court Fees deposited US$301,746.10, and US$828,930.09 respectively at TSA Account at CBS as Revenue 2023 but these amounts were shown on Budget of 2023 as revenue as US$0, and US$0, respectively.
Ministry of Fisheries, Ministry of Employment, Ministry of Information, and Ministry of Education services fees deposited US$27,000, US$2,475,038.36, US$25,500 and US$218,150 respectively at TSA Account at CBS as Revenue 2023 but these amounts were shown on Budget of 2023 as revenue as US$0, US$0, US$0 and US$0, respectively.
The Turkey Budget Support deposited US$7,500,000 at TSA Account at CBS as Budget Support Revenue 2023 but these amounts were shown on Budget of 2023 as revenue as US$30,000,000.
The China Budget Support deposited US$804,386.88 at TSA Account at CBS as Budget Support Revenue 2023 but these amounts were shown on Budget of 2023 as revenue as US$0.
The EU SAGAL Project and EU Budget Support deposited US$274,138.08 and US$22,567,818.78 respectively at TSA Account at CBS as Project for Save the Children and Budget Support Revenue 2023 but these amounts were shown on Budget of 2023 as revenue as US$ 818,449 and US$21,000,000, respectively.
The World Bank Project deposited US$183,697,525.27 at TSA Account at CBS as Project Revenue 2023 but these amounts were shown on Budget of 2023 as revenue as US$425,327,706. The Accountant General and Auditor General never audited the World Bank Projects funds whether they properly followed the PFM Act and Appropriation Act rule and the reason why the Ministry of Finance did not report shortfall of funds projected to be funded by the World Bank and reason why there were short fall of more than US$370,000,000.
MP Abib then sends a critical message to international donors and writes, “It is perplexing that the World Bank and IMF did not question the validity of the international donors’ funds pledged to Somalia’s development projects. Given their roles in monitoring and supporting fiscal transparency and economic stability in developing nations, their lack of scrutiny is troubling. This oversight raises questions about their due diligence processes and the potential consequences of endorsing inaccurate financial statements.”
Click here to continue reading MP Abib’s Letter to President Hassan Sheikh.
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