AG directs MDAs to register all contracts, develop spending plans

GOOBJOOG NEWS|MOGADISHU: Auditor General Ahmed Gutaale has directed all government ministries, departments and agencies (MDA) to ensure all contracts are registered with the National Audit Office before they are executed.

In a letter dated 11 April directed to all MDAs, the Auditor General said all concerns captured in the 2022 Audit Report must be adequately responded to. In the report, 105 contracts costing $14 million were not registered with the AG and neither were there sufficient documents to support the spending.

The AG also directed all MDAs to develop annual spending plans to avoid haphazard and undeclared spending. The 2022 Audit Report noted that all 29 MDAs did not have spending plans. These MDAs, the report noted, spent 106 million without any spending plans.

Further, the AG also pointed out the use of bank accounts outside the Treasury Single Account (TSA) as provided by the law. The 2021 spending which was captured in the 2022 report revealed that MDAs held up to $5 million in commercial banks in the country contrary to the Public Financial Management Act.

The AG directed that all MDA must get approval from the finance minister and the Accountant General to open accounts in private banks.