Urgent Request for Comprehensive Audit and Accountability Measures Against Financial Mismanagement and Corruption in Somalia’s Executive Branch Entities

Federal Republic of Somalia
House of the People
Office of Hon. Abdillahi Hashi Abib

Yours Excellency,

As a Member of Parliament responsible for overseeing the integrity of public financial management, I am compelled to bring to your attention issues concerning financial mismanagement and potential corruption within various executive branch entities of the Federal Government of Somalia.

This letter provides detailed observations and data analysis that necessitate an urgent and comprehensive audit by the Office of the Auditor General of Somalia (OAGS). As we know, the activities of the Office of the Auditor General of Somalia are based on the Financial Management Procedures of the government. Currently, this includes the following Acts:

1. Law No. 2 of 29/12/1961: Financial & Accounting Procedure of the State

2. Law No. 317 of 17/12/1962: Regulations for the Accounts of the State

3. Law No. 318 of 18/12/1962: Stores Regulations

4. Law No. 34 of 14/04/1972: Magistrate of Account.

In the matter of the management and control of public finances, the Federal Republic of Somalia Parliament plays a very important role. The expenditure of public funds by the Federal Government of Somalia is subject to authorization and control by the Federal Republic of Somalia Parliament. In incurring expenditure of public funds, the Executive Branch is required to exercise strict commitment and expenditure control and ensure the efficiency and economy of operations in accordance with the intentions of Parliament. It is also required to prepare detailed sets of accounts and financial statements.

These are audited by the Auditor General, and the timelines for submission of audit reports to the Federal Republic of Somalia Parliament are set as part of the Financial & Accounting procedures of the state. The accountability cycle ends in the Federal Republic of Somalia Parliament with the review of the public accounts and the Auditor General’s reports by the oversight accountability Financial Committees of Parliament. An effective accountability framework helps ensure that public funds and resources are managed in a legal, competent, effective, and efficient manner and that the objectives of public programs are achieved. With more than 400+ gigabytes of data on detailed itemized expenditures or withdrawals from July 2022 to June 2023 of the Federal Republic of Somalia and 30+ years of experience in data mining, data analysis, and data understanding, here are samples of withdrawals that are questionable and inconsistent with the purpose of withdrawals appropriated by the Federal Republic of Somalia Parliament, violating parliamentary orders.

Therefore, Executive Branch entities have broken the laws of the Federal Republic of Somalia. Here are examples of the misappropriation of public funds:

Questionable, Misappropriation, and Mismanagement of Donor and Somali Taxpayers’ Public Funds:

National Security Agencies Expenditure:

In this letter, we have decided not to share any sample data from National Security Agencies (NISA) but will share food, fuel, and other expenses of the DANAB Forces, National Defense Forces, Police, and Correctional Departments:

(a) Danab Forces receive food from SUCCESS TRADING AND LOGISTICS SERVICE at a cost of US$28,963.00 per month. The same company provides food to the GORGOR Defense Forces (Gt13 QB 21 & Gorgor) at US$42,737.40 per month. Additionally, SAM LOGISTICS GENERAL SERVICE COMPANY provides food to GORGOR Defense Force at US$47,891.30 per month.

(b) National Defense Forces receive food monthly from Daljir Trading and General Service at US$276,263.40, and Scandinavian Trading and Contracting Co. at US$276,263.40. IRAAF Trading and Service Co. provides healthcare at a cost of US$48,500 per month.

(c) National Police Forces receive food from Real Gold Construction Co. at US$288,518 per month and additional food (“IDIINKA”) at US$158,292 per month in cash. They receive fuel from United Group Company worth US$69,271.58 per month.

(d) National Correctional Forces receive food from SAM LOGISTICS GENERAL SERVICE COMPANY at US$165,290.00 per month and fuel from BLUE LINE PETROLEUM at US$25,543.01 per month.

Office of the President Expenditure:

The Office of the President reported 34 trips inside and outside the country, withdrawing US$3,011,999.78 in cash from the Central Bank of Somalia. Notably, some requested funds were full numbers from July 2022 to June 2023, including US$110,000, US$130,000, US$101,765, US$100,000, US$70,000, US$36,014.16, US$50,000, US$70,000, US$195,737, US$43,999, US$37,817, US$28,000, US$50,000, US$30,000, US$27,409, US$70,000, US$70,000 (same day), US$60,000, US$180,000, US$14,550, US$80,000, US$50,000, and US$74,019.

The largest request was for a trip in August 2022 amounting to US$316,000. All these funds were taken in advance and in cash. The Office of the President spent substantial funds entertaining visiting delegations, including US$189,455 for Djibouti, US$45,826.68, US$44,114.15, and US$47,539.22 for Religious Leaders, US$60,000 for the East Africa Community, and US$136,430 for other purposes.

The Office of the President also bought machinery from Sadech Builders Logistic Consultant Co. for US$902,557.70 without explaining its use. Additionally, the Office of the President spent US$81,992 on advisory services and a consistent monthly fuel payment of US$30,229.80 to Daljir Trading and General Service. True Way General Service Co. receives US$21,166.37 monthly as other expenses.

Office of the Prime Minister Expenditure:

The Office of the Prime Minister spent US$36,508 on advisors and paid US$48,500 monthly to the advisory company Timely Logistics & Supplies Co., which is unprecedented.

The Office of the Prime Minister spent US$1,589,335.75 in cash on trips, with amounts including US$36,835.75, US$120,000, US$150,000, US$407,400, US$90,000, US$80,000, US$30,000, US$80,000, US$20,000, US$150,000, US$160,000, US$95,000, US$90,110, US$50,000, and US$30,000. Another strange monthly payment is US$48,484.58 for air tickets to Super Travel and Logistics.

Despite owning many vehicles, the Office of the Prime Minister rented cars from Diirshe Car Rent for US$36,316.80 monthly. A consistent monthly fuel payment of US$40,546 goes to Hass Petroleum Somalia LTD. In November 2022, the Office bought a car from Blink Logistic Services for US$194,000 despite having a fleet of vehicles. Renovation and repairs included US$145,500 to EECoS in December 2022 and US$194,983.43 to Prestige Real Estate Development and Infrastructure in April 2022. The Office of the Prime Minister spent US$217,255.75 in November 2022 with Eagle Trading and General Services and gave US$407,400 for Emergency Support for Hirshabeele in October 2022 to Daljir Trading and General Service.

Office of Hon. Abdillahi Hashi Abib
Contact: 1-571-436-7586 / +252-610822469
Email: [email protected]
Website: https://abib.parliament.gov.so/

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