Somalia’s Transitional Federal Government (TFG) has few months to pave the way for a new government to end the transition based on the roadmap . Both the president Sharif Ahmed and his prime prime minster, Dr Abdiweli Ali, are presidential hopefuls, each with set of advantages and disadvantages. A summary of World Bank Financial Diagnostic Assessment of“Audit Investigative Financial Report 2009-10” distributed during the Istanbul Conference on Somalia cautiously argues that the TFG is a hotbed of corruption caused by funds misused or neglected by the TFG . According to the summary the misused funds were funds donated directly to the TFG but the summary does invite readers to conclude that the findings can be a basis for labelling the TFG a corrupt entity because the “summary of the Katuni Consult report must be considered as provisional and subject to correction as further information becomes available.”
The summary report sheds more light on political deals struck after president Sharif Ahmed was elected than alleged misuse of money . Of the six men the summary report describes as “officials in specific offices and authorities… vested with the power to collect and distribute revenue,” three belonged to the Alliance for the Reliberation of Somalia which signed peace agreement with the TFG in 2008, the other three belonged to the TFG. The summary report indicates that the Ministry of Finance is vested with powers “to collect and account for all revenue for the TFG, and its disbursement to the other line ministries” but argues the Ministry of Treasury ” states domestic revenue as $11,881,485 in 2009 (with similar inconsistency regarding external aid)” although terms of ministerial reference for the Ministry of Finance show tasks that the Ministry of Treasury is supposed to do. Another questionable set of data in the summary is about the allegation that ” the Telecommunications companies transfer a minimum of $100,000 per month to the Minister of Telecommunication …” Since the Ministry of Telecommunications has not begun auctioning spectrum to mobile phone companies, one wonders what type of the money is the monthly money paid by telecommunications companies, and where these companies are based .
The summary criticises the TFG for failing to formulate ” a policy of taxation for the telecommunication sector” as well as failure to process “it for legislation”. The summary names two money remittance companies – Dahabshiil and Qaran express– allegedly used by the TFG to handle external funds. Qaran Express ceased trading few months ago. Money remittance companies have lent the TFG money , alleges the summary. Missing in the summary is a detail about money printed by the TFG in Sudan two years ago and how the the printed money was put into circulation. In 2009 The Somali government appointed PriceWaterhouse Cooper to audit its books. Has external auditor been made aware of donations from from Middle East countries ? The TFG has not responded to the World Bank report allegations.