Ministry of Finance unaccounted millions and string of graft in government
THE GOVERNMENT cannot account for $1.3 million set out in the 2015 national budget while another $1.5 million was spent on foreign trips even as the government struggles to seal the gap left by donor default, a parliamentary committee has revealed.
In a stinging report, the Finance Committee of Parliament has pointed to troubling financial irregularities, corruption , misappropriation of funds , embezzlement and negligence.
The Saman Mohamed Sheikh Dahir chaired committee says in its report to parliament the Ministry of Finance went against regular procedures in management and distribution of funds and in some instance could not itself account for how it spent its allocation
National budget
The 2015 budget was $239,900,000 with $123,400,000 from the domestic market and the rest, $116,500,000 from direct foreign aid. However, the committee said donors did not honour their pledge plunging the country into a budgetary deficit of close to half of the annual budget.
Even in the light of this, government ministries still failed to prudently manage the little amount available further creating a massive shortfall in government funded projects.
In one instance, the finance ministry drew up to $1.3 million for unexplained expenditure. In another, the Central Bank and the Ministry of Finance rejected a voucher numbered 208 which sought to clear arrears for former MPs in direct violation of parliamentary approval.
Overseas trips
The parliamentary committee has also noted that despite tightening bolts against former MPs, Ministry of Finance lavishly dished out $1,582,319.87 for overseas trips by senior government officials including the president. The committee has termed some of the trips as unnecessary and a burden to the taxpayer.
Corruption
The report makes serious corruption allegations against the Ministry of Finance and other government organs, and makes recommendations for urgent actions against those involved.
The report says at the close of the 2013 fiscal period the government borrowed a sum of $10 million from two privately owned companies namely Dahabshiil Bank and Salama Bank. However, only $6 million was channeled through the government single account, while the rest $4 million dollars is unaccounted for.
The government of China donated $1million cash to Somali government through Somalia embassy in Kenya in 2013 but only $500,000 could be accounted for.
The committee has given the Attorney General Dr. Ahmed Dahir a 30 day ultimatum to act on the report from his office which implicated 19 ministries.
Mismanagement and Negligence
The committee made a case about the fact that the tariffs levied on the imported or exported goods are not consistent with national threshold and falls short of good practices, noting that this had devastating effect on the government’s ability to collect enough revenue. This amounts to gross negligence, the report said.
On taxation, the committee has taken issue with the government for failure to impose appropriate taxation on companies in the country which could be a major revenue source for the government. Notable in the bracket include banks, telecommunication companies, remittance companies and hotels.
The committee has also raised concern over the management of the airport and seaport noting that such national entry points cannot be left completely at the hand of foreigners.
The Ports Ministry handed over the management of the Mogadishu International Sea Port to the Turkish Turkey’s Albayrak Group two days ago.
The allocation of funds to yet established institutions like the Emergency Management Agency has also caught the committee’s eye which they say is unnecessary since its functions have not even been established.
Key recommendations
The committee has recommended that parliament should review deals by government with Turkish companies that operate the seaport and airport in 45 days. Government officials should be attached to these companies and report back to the national treasury, they recommend.
Further, the committee calls for the independence of the Auditor General and that the government should not interfere with his work and the office.
This comes at a time the president just returned a bill on the Auditor General’s office in which case the president is intend on clipping the powers of that office.
All payment vouchers from ministries to the Central Bank must bear the signature of the Director General of the respective ministry, the committee recommends.
Coming hot in the heels of an impeachment against the president for alleged mismanagement of public funds among a number of concerns, the parliamentary report is likely to be another boon for pro-impeachment MPs to bolster their quest.