SOMALIA’S MINISTER OF FINANCE ACCUSED OF VIOLATING BUDGET MANAGEMENT LAWS THROUGH DIVERSION OF TSA FUNDS

SOMALIA’S MINISTER OF FINANCE ACCUSED OF VIOLATING BUDGET MANAGEMENT LAWS THROUGH DIVERSION OF TSA FUNDS

In a scorching seven page letter with annexes, MP Abdillahi Hashi Abib this time goes after the Federal Government of Somalia Ministry of Finance, in particular Minister Bihi Iman Cige. MP Abib accuses Minister Cige of “significant mismanagement, corruption, and legal violations stemming from the interim guidelines issued by the Minister of Finance, on December 28, 2023, under reference MOF/OM/0246/2023. These guidelines pertain to the administration of fees collected by the Immigration and Nationality Agency and have led to severe consequences for our financial management system and public trust.”

MP Abib refers to a Directive issued by Minister Cige authorizing the Immigration and Nationality Agency not deposit fees and revenues collected by the agency into the Treasury Single Account (TSA) at the Central Bank of Somalia. “In this letter the Minister of Finance didn’t inform the Office of the President and the Office of Prime Minister,” writes MP Dr. Abib.

Addressing President Hassan Sheikh and PM Hamza Abdibarre, MP Abib then writes, “Yours Excellences’, I urgently request a comprehensive investigation into recent actions taken by the Minister of Finance, which appear to be in direct violation of the budget management laws passed by the Federal Parliament of Somalia. These actions not only undermine the legal framework established to ensure financial integrity and accountability but also set a dangerous precedent for the misappropriation of public funds.”

Going to the heart of the matter, MP Abib points out that the diversion of funds by Somalia’s Minister of Finance is in contravention of of the law and the rules of the Ministry. “The guidelines issued by the Minister of Finance are illegal as they contravene the Appropriation Act for 2023. According to the Act, all revenues collected must be deposited into the Treasury Single Account (TSA) at the Central Bank of Somalia within 24 hours of collection. Disbursements from this account require prior authorization from Parliament. The Minister’s directive bypasses these critical financial protocols, enabling the use of funds before they are properly accounted for and appropriated. This unauthorized diversion of funds undermines the transparency and accountability mechanisms put in place to safeguard public resources.”

And then MP Abib produces evidence of the diversion of funds by pointing out that year 2022 (January to December 2022) fees and revenues collected by the Agency amounted to $15,000,000 versus $8,500,000 in 2023 (January to December 2023); hence showing an estimated $6,500,000 missing from the coffers of the Agency.

“This stark reduction in revenue collections indicates a substantial loss of public funds that should have been available for essential services and development projects. The mismanagement of these funds has detrimental effects on the country’s financial stability and development prospects,” writes MP Abib in his letter to the President and the Prime Minister.

MP asks the President and the PM if they have or haven’t authorized this illegal action. He then adds, “If you did not authorize this reckless action by the Finance Minister, which has emboldened rampant corruption in revenue collection and undermined the economic growth of our beloved country, I and the Somali public urgently call on you to take the following swift and bold actions to restore donor trust and public confidence.”

   

Assuming the Minister’s actions weren’t authorized by the President or the PM, MP Abib then recommends that Minister Cige be arrested immediately, dismissed and persecuted for financial crimes committed while serving as Somalia’s Minister of Finance.

MP Abib concludes, “Yours Excellences’, I urge you to prioritize this investigation and to take all necessary actions to ensure that the financial laws of Somalia are upheld and that any breach of these laws is addressed with the full force of legal and administrative measures available.”

Contributed to by Daljir Staff in Garoowe and Mogadishu.

FAALLOOYIN & FALCELIN

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