Ministry of Finance (Somalia)

Last updated
Federal Republic of Somalia
Finance
Wasaaradda Maaliyadda
Coat of arms of Somalia.svg
Coat of arms of Somalia
Agency overview
Formed31 August 1960;64 years ago (1960-08-31)[ citation needed ]
Jurisdiction Government of Somalia
Headquarters Bondhere, Banaadir, Mogadishu Flag of Somalia.svg
2°2′24″N45°20′46″E / 2.04000°N 45.34611°E / 2.04000; 45.34611
Agency executive
  • [Bihi Iman Egeh], Minister
Parent agency Cabinet of Somalia
Website www.mof.gov.so

The Ministry of Finance (Somali : Wasaaradda Maaliyadda), abbreviated MOF, is a ministry of the Government of Somalia that is charged with the responsibility for government expenditure and revenue raising. The ministry's role is to develop economic policy and prepare the federal budget. The Ministry of Finance also oversees financial legislation and regulation. Each year in October, the Minister of Finance presents the Somali federal budget to the Parliament.

Contents

Minister

The Minister of Finance administers his functions through the Ministry of Finance and a range of other government agencies. The current Minister of Finance is Bihi Iman Egeh

The Minister of Finance is the minister in charge of government revenue and expenditure. The minister oversees economic policy: fiscal policy is within the minister's direct responsibility, while monetary policy is implemented by the politically independent Central Bank of Somalia, the head of which is appointed by the President of Somalia. The Minister of Finance also oversees financial legislation and regulation. Each year in October, the Minister of Finance presents Somalia's federal budget to Parliament.

The Minister of Finance is a very senior government post; historically, many finance ministers have previously, concurrently or subsequently served as prime minister or deputy prime minister.

Ministers of Finance

History

In May 2013, the Somali federal government announced that it had launched a new Public Finance Management Policy (PFMP) in order to streamline the public sector's financial system and to strengthen the delivery capacity of the government's financial sector. Endorsed by the Somali Council of Ministers on May 2, [7] the reform plan has a robust fiduciary framework according to the African Development Bank (AfDB). [8] It is intended to serve as a benchmark for public financial management and the re-establishment of national institutions. The PFMP aims to provide transparent, accurate and timely public sector financial information by ameliorating the national budget process' openness, rendering more efficient and effective public spending, and improving fiscal discipline via both internal and external control. It also sets out to concentrate public expenditure on government priority areas. According to Cabinet members, the policy will cost an estimated $26 million and is expected to be fully implemented over the next four years. [7]

On 17 January 2014, newly appointed Prime Minister of Somalia, Abdiweli Sheikh Ahmed split the ministerial portfolio into Ministry of Finance and Ministry of Planning, respectively. [9]

In February 2014, Minister of Finance Hussein Abdi Halane announced the establishment of a new financial governance committee. The panel is part of an effort by the central authorities to build a more transparent financial system in order to attract additional foreign budget assistance. It will see Somali officials confer with World Bank, International Monetary Fund and African Development Bank representatives, with committee members tasked with providing advice on financial matters. [10] On 29 March 2014, during a parliamentary session, Speaker of the Federal Parliament Mohamed Osman Jawari also announced that all withdrawals from the Central Bank would as of 1 April 2014 require the written approval of the parliamentary finance committee. [11]

In November 2014, the Ministry of Finance launched a new automated Somalia Financial Management Information System (SFMIS) in place of its former manual system. The SFMIS will support reforms made through the Public Finance Management Policy. It aims to strengthen administrative transparency in terms of asset recovery, contracts, concessions and other transactions, and to ameliorate the accuracy, comprehensiveness and timeliness of monetary reports in order to facilitate decision-making. In particular, the system will be centered on registering budget, revenue and expense related data. Electronic financial reports are also slated to be made available through the ministry's official website. The SFMIS' robust IT infrastructure will be installed in all of the Ministry of Finance's offices, as well as in major governmental agencies and partner institutions. Its implementation is funded by the World Bank, and is scheduled to be fully operational in January 2015. [12]

In September 2015, the Ministry of Finance contracted Smart General Services, Ltd., to collect road taxes and vehicle registration fees on behalf of the Federal Government. Despite a standing Government directive that all State revenue be routed to the Treasury Single Account at the Central Bank of Somalia, the taxes and fees generated by Smart General Services were deposited into a private account at Salaam Somali Bank in Mogadishu. The net revenue, once the company had deducted its 40 per cent share, was intended to be transferred from Salaam Somali Bank to the Treasury Single Account every 15 days. The UN Somalia and Eritrea Monitoring Group found that, instead, only $62,648 (4.2 per cent) of the $1,481,695 generated by Smart General Services from August 2016 to May 2017 was ever transferred to the Treasury Single Account. Moreover, revenue was transferred inconsistently and with irregularities. [13] There were public accusations in August 2016 that "Fargetti", the Minister at the time, had embezzled large sums from the tax receipts. [14]

Structure

See also

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References

  1. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Mukhtar, Mohamed Haji (2003). Historical Dictionary of Somalia. Scarecrow Press. ISBN   978-0-8108-6604-1.{{cite book}}: |website= ignored (help)
  2. ↑ Mukhtar, Historical Dictionary of Somalia. Yusuf was successively third commander of the Somali Navy (https://goobjoog.com/taariikhda-ciidanka-badda-soomaaliyeed-2/); headed the National Security Court in 1972; and listed as Minister of Ports and Maritime Transport for 1978-82; 1984-87; and 1989-90 (Mukhtar).
  3. ↑ "BBC News | AFRICA | Somali cabinet list". news.bbc.co.uk.
  4. ↑ "Muhammad Yusuf Weyrah (Somalia)". 25 May 2012. Archived from the original on 2012-05-25.
  5. ↑ Bihi Egeh, pubdocs.worldbank.org. Accessed 5 March 2024.
  6. ↑ "Group of 30: Resources". group30.org. Retrieved 5 March 2024.
  7. 1 2 Khalif, Abdulkadir (3 May 2013). "Somalia adopts new finance policy". Africa Review. Retrieved 5 June 2013.
  8. ↑ Kaberuka, Donald (7 May 2013). "Somalia: From fear to hope – Getting it right in Somalia, President of the African Development Bank". African Development Bank Group. Retrieved 14 November 2013.
  9. ↑ "Somali Prime Minister Unveiled His 55-Member Cabinet (Full List)" . Retrieved 1 May 2014.
  10. ↑ Blair, Edmund (26 February 2014). "Somali minister cautiously plans new tax regime". Reuters. Retrieved 3 March 2014.
  11. ↑ "Somali parliament outlaws money withdrawals from Central Bank without their approval". SomaliCurrent. 30 March 2014. Archived from the original on 30 March 2014. Retrieved 30 March 2014.
  12. ↑ "Somalia: Ministry of finance launched new financial management system". Goobjoog. 16 November 2014. Retrieved 4 January 2015.
  13. ↑ United Nations, Reporting of the Somalia and Eritrea Monitoring Group, S/2017/924, p.20-21.
  14. ↑ "Somalia: Finance Minister Embezzles Tax Budget - allAfrica.com". Archived from the original on 2016-09-22.
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