Somalia Exposed: Shocking Fraudulent Activities Uncovered in Finance Sector
Widespread Financial Irregularities and Embezzlement Revealed by Auditor General’s Forensic Audit
In a major breakthrough, the Office of the Auditor General (OAG) in Somalia has released the findings of its comprehensive forensic audits, exposing widespread financial irregularities and embezzlement within several key government agencies. The three-year investigation, launched following a 2020 compliance audit, has uncovered shocking discrepancies in revenue collection and deposition, highlighting a culture of corruption and mismanagement.
Officials Accused and Convicted
A total of 22 officials, including:
- 15 from the Immigration and Nationality Directorate
- 3 from the Ministry of Finance and Central Bank
- 4 from the Ministry of Labor and Social Affairs
have been accused of fraudulent activities. Eleven of these officials have been convicted of criminal activities, with prison sentences ranging from one to nine years. Several others have been barred from government employment for five years.
Staggering Discrepancies in Revenue Collection and Deposition
The audits revealed the following discrepancies:
- A total of $33.37 million collected from work permits and visa extensions, but only $12.44 million deposited into the Treasury Single Account, leaving an alarming $20.93 million unaccounted for.
- Nearly $4.98 million embezzled from passport services.
Urgent Need for Stricter Financial Controls
These findings underscore the urgent need for stricter financial controls and oversight within Somali government agencies to prevent further abuse of public funds.
Increase in Monthly Revenue
In a significant turnaround, the forensic audits have led to a substantial increase in monthly revenue for government services:
- Average monthly income from visa extensions rose from $160,419.67 to $439,045.00.
- Work permit services saw an average monthly income increase from $43,476.89 to $358,400.00.
Commitment to Transparency and Accountability
The Auditor General of Somalia emphasized the importance of robust financial oversight, stating:
“These findings highlight the urgent need for stricter financial controls… The discovery of over $25.9 million in embezzled funds is a clear indicator of the scale of financial mismanagement we have been able to address through our forensic audits.”
The increase in revenue has enabled the Treasury Single Account to maintain government employees’ salaries without the need for additional support or loans, starting from July 2023.
Ongoing Vigilance and Robust Financial Oversight
The OAG remains committed to ensuring transparency and accountability within government operations, recovering millions of dollars in embezzled funds and paving the way for improved financial practices across various government agencies. The findings serve as a stark reminder of the critical need for ongoing vigilance and robust financial oversight in Somalia’s finance sector.