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Somalia misreports its revenue – World Bank report

May 31, 2012 · 2962410 Comments2012-06-01+05%3A11%3A16Sahra+Farah

Photo: President Sheikh Sharif Sheikh Ahmed greets children at the opening of a new market area in central Mogadishu (AU/UN)

NEW YORK — A World Bank report says the Somali government has not accounted for most of the revenues and donations it received in 2009 and 2010.

The report, released this week, says World Bank auditors found that Somalia’s Transitional Federal Government (TFG) received far more money than it has said.

The report’s author, Joakim Gundel, said auditors found the government had collected at least $94 million in revenues in 2009. But the government reported only $11 million in revenues.

In 2010, auditors found the government collected $70 million in revenues, while the government reported just $22 million.

“There is a discrepancy in what comes in and there’s a lack of accounting of how money has been spent,” said Gundel. “So that opens naturally a big question mark for sure.”

Gundel said discrepancies appear to back assertions made one year ago by a Somali government whistleflower.

The former chief of Somalia’s public finance unit, Abdirizak Fartaag, said an audit found strong evidence of mismanagement and misappropriation of funds.

The World Bank report said not all revenues and donated funds are deposited in the central bank, and it is not clear where they go.

“What we did observe is that in relationship to the bilateral funds, donations often they are given directly to individual government members and do not exactly specify exactly who and how,” said Fartaag. “But such donations appear to have happened. But we did find and did make observations that this money is not fully deposted in the central bank, sometimes it’s only partly.

The report found the United Nations-backed government has no real accounting system nor does it publicly disclose financial statements. It also said the weak transitonal government lacks transparency, making it difficult for auditors to fully assess the country’s finances.

Gundel said the unaccounted for money could significantly bolsters Somalia’s security without relying on foreign donations.

The weak transitional government has received significant foreign aid and donations to help it address persistent conflict, instability, poverty, food shortages and an insurgency by al-Shabab militants.

Under a U.N.-brokered roadmap, Somalia is to form a post-transition government. The plan calls for the adoption of a new constitution by July 1 and parliamentary elections to be held on August 20.

Somalia has not had a stable central government in more than 20 years, since warlords overthrew President Mohamed Siad Barre.

Voice of America (VOA)

May 31, 2012

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By Sahra Farah

Tags: corruption, Donations, Donor, mismanagement, revenue, Somalia

abdi says:

Acually world bank is encouraging more corruption in Third world so These countries never stand up own feet.most of The money They spend in These countries goes back to Them indirectly givin all The big contractes not local people or companies put overseas one.somali case is no different from rest of africa and even more worest current TFG including all somali regions which gets fund from world bank.once stablish real elected goverment Than That’s when resposibilty & accountability starts or boot Them out from office.

1:45 am on June 1, 2012

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cimraan says:

This is not news to us. Corruption reached high levels in Somalia. Public money is misappropriated in a large scale manner. The head of state and his cronies use part of this money to destabilize Somaliland. It is a known secret that the Khatumo seeg is armed and financed directly from the presidential villa Somalia. Aid money instead of going to deserved people, go to government mafia.It is easy to see where these money are spent. just look at how gov official live and spend. And ask how they can afford all of that on the meager salary they receive from the gov.

2:09 am on June 1, 2012

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Noor ismail says:

Well this shows a new govenment needs to found a rich cultural country that had abundant oil resetve

5:12 am on June 1, 2012

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Malaayka1 says:

If this true and that the govt mismanaged and misappropriated funds, then,It is shocking and shameful. Internally displace people in Moqudisho could have been housed and at least all hospitals could have been operationalized with such money! Shame on you people.

7:46 am on June 1, 2012

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ComeAgain says:

And they world wants us to unite back with Men who steal from the mouths of their own people? Waax isku ma falaan! 21 years of coo nery! Thank You God for sparing Somaliland and please continue to keep us far enough separated from Somalia as you have done! Separate Somaliland in mind and deeds from Somalia so that we appear wholly in two completely different galaxies! Ameeeeeeennnnnnnnnnnnnn!

8:39 am on June 1, 2012

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- naasir says:
  
  tell That silanyo stealing millions without any accountability what so ever & tealing poor people in hargiesa land They Accupy.
  
  9:43 am on June 1, 2012
  
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cimraan says:

What happened to the Somaliland detractors? doesn’t this story mean anything to them? doesn’t this blatant corruption mean anything to them?

12:21 pm on June 1, 2012

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- ayanle says:
  
  You are enjoying it don't you ? But ask yourself Son, where in east africa can i found a
  corruption-free country ? NOWHERE, corruption is everywhere, even in the western country where your
  ass is sitting. it's just that some countries are more exposed and watch than other. stealing million from a billionaire country is more easy and discrete than stealing million from a poor country.
  All in all, it's pretty sad news, i hope the next president will do something about that corruption cancer.
  
  4:31 pm on June 1, 2012
  
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Kayse says:

No one is more corrupted than Garadagland and Zero'aanyo. They don't receive anything because the international community has no desire to waste its taxpayers money on two subclans up to nothing but chewing qaat and telling each others lies.

Kuwait donated $10m and now no one knows where it has gone. They just want to spend $1.5m and keep the rest between Silaanyo, his subclan and Dhiigshiil.

Its disturbing when they dont even belong in either region where the money was donated to. Garadag has no road forget airport. The locals who live in the airport area will block them both in Hargeisa and Berbera.

They just want to put a simple fence and retouch the runway and run away. Its not on.

Somalia is getting donations because its a legit country that can recover that money once it stands on its feet again but Garadagland?? Where is that?

5:48 pm on June 1, 2012

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- burci says:
  
  your right if world bank give good donation to garadagland can’t recover later time becuase garadagland does not exist,on other hand sharif af gaduud or af yanyo his TFG which will end soon Atleast can be traced not like two sub council.
  
  2:31 am on June 2, 2012
  
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