Somalia’s embassies have been under scrutiny by the Office of the Auditor General (OAG) of the Federal Government of Somalia (FGS) for unaccounted millions. Ahmed Isse Gutale, the Auditor General, disclosed this week the findings of an investigation conducted into the financial affairs of some of the nation’s embassies abroad.
Mogadishu, SOMALIA. By Dalmar:
“The investigation uncovered mismanagement of revenues amounting to 1.9 million dollars, collected by the Somali embassies in Kenya, Turkey, and Germany,” Gutale announced. He further emphasized that the missions did not utilize the funds effectively, raising serious questions about their financial accountability and transparency.
The Auditor General pointed out significant discrepancies in the funds’ management by these embassies and expressed concern over their omission from the government’s official financial reports, signalling a potential breach of financial regulations and oversight.
Embassies had no budget plans
According to the OAG, the concerned embassies in Kenya, Turkey and Germany lacked regulations and tariffs when collecting their revenue. They allegedly failed to deposit a stunning US $3 million to the Treasury Single Account (TSA), reportedly collecting some revenue in cash “with limited transparency,” the report says.
Alarmingly, the mentioned embassies did not have a budget plan for their revenues and expenditures, creating a breeding ground for corruption.
Noteworthy is also OAG’s finding that individuals who did not meet diplomatic requirements were nonetheless nominated for foreign service. The Ministry of Foreign Affairs staff must work for two years at the Mogadishu headquarters before being eligible for appointments at foreign Somali embassies.
Key findings
The OAG audited 15 entities in 2022 and made 106 observations in total. The total audited amount was US $539.4 million, which comprised 58% of FGS’ annual budget. The percentage is concerningly low due to the Somali government’s persistent ignoring of the OAG requests for information. Experts warn that hundreds of millions of dollars of expenditures remain unaudited because the Public Finance Management (PFM) Act does not mandate government offices to do so.
Of the 15 audited entities, nine failed to conduct internal audits. Seven entities received external grants totalling US $38.8, which the entities did not include in the Parliament-approved national budget. Additionally, the audited entities procured goods and services for US $60 million without having a proper Annual Procurement Plan.
Worth noting is the staggering number of 436 government buildings and lands that are in private hands. The OAG recommends that government entities restore ownership of these premises that are currently not under their custody.
Criticism
Critics of the Auditor General’s steps say that his office intentionally targets officials linked to or appointed by the former Somali President, Abdullahi Farmaajo. They argue that corruption is literally in every sector of government agencies, and nepotism has been accepted as a norm and openly endorsed. Because of that, according to many, the Auditor General should also focus on officials linked to or appointed by the current government of Hassan Sheikh Mohamud.
