Mareeg Media
Somalia

Somali government funds misused

MOGADISHU – Somali Auditor General Mohamed Mohamud has released 2018 annual financial audit report blaming the Federal Government of Somalia for misappropriation of financial resources.

Mohamud’s report also shed new light on specific allegations of fraud within the government’s institutions, including ministries of ports and marine transport, transport and civil aviation.

He says more than $18 million from the country’s funds were missed.

Mohamud added that the Ministry of Transport and Civil Aviation collected US $ 86,980 and used it at source while the Somali Police Force (CID) also collected US $ 577,014 and used it at source.

He stated that Somali Civil Aviation Meteorology Agency collected US $130,130 and used it at source as well as Somali National University collected US $ 556,276 and used it at source.

External assistance from the European Union

Receipts of external assistance from the EU has been understated by US $3.738 million being the difference of receipts included in the Statement of Receipts and Payments and actual amounts disbursed by the European Union for budget support during the year.

The EU disbursed to the Ministry of Finance a total of US $ 17, 004, 816 whereas the financial statements presented show only US $ 13, 266,667 for the year, being the amount deposited in the Treasury Single Account of the Federal Government of Somalia.

Therefore, cash and cash equivalents, and budget performance (surplus) at the end of the year have also been understated by US $ 3.738 million in respect of external assistance from the EU.

Total revenues of US $ 1,350, 400 was neither included in these financial statements nor accountabilities for expenditures made thereof have been submitted for my audit. Therefore, the financial statements have been understated by these receipts and related expenditures and any balances thereof.

External assistance from the Kingdom of Saudi Arabia

Additionally, there was a balance of receipts of external assistance from the Kingdom of Saudi Arabia to the Federal Government of Somalia totalling US $ 20,000,000 for the year ended 31 December 2018. Of that amount only US $ 6,070,868 was disclosed in the annual financial statements because the SFMIS captured the latter amount whilst the balance US $ 13,929,132 was in an off-shore bank account which is not part of the Treasury Single Account.

Therefore, cash and cash equivalents, and the budget surplus (performance) at the end of the year have also been understated by US $ 13,929,132 in respect of external assistance from the Kingdom of Saudi Arabia.

External assistance from UNOPS

Receipts of external assistance from UNOPS for Somali Police Force stipends have been understated by US $ 719,451 being the difference of receipts included in the Statement of Receipts and Payments and actual amounts disbursed by UNOPS to the Ministry of Finance during the year.

UNOPS disbursed to the Ministry of Finance a total of US $ 1,254,743 whereas the accounts show only US $ 535,292 for the year, being the amount deposited in the Treasury Single Account of the Federal Government of Somalia. Therefore, cash and cash equivalents, and budget performance surplus) at the end of the year have also been understated by US $ 719,451 in respect of external assistance from UNOPS.

Summary of misstatement of external assistance

From the above analysis, external assistance for the year was understated by US 18,386,732 because not all external assistance to the Federal Government of Somalia are immediately transferred to the Treasury Single Account to be reported by the Accountant General’s Office.

 

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