Financial Crime World

Somalia’s Financial Integrity Institutions Cry Out for Sustained Support

Under-Resourced and Marginalized Institutions Require Sustained Support

Despite being prioritized by the Federal Government of Somalia (FGS) in all its programs, financial integrity institutions have been woefully under-resourced and marginalized for years. These institutions require sustained support to be empowered to perform their functions effectively.

Challenges Facing Financial Integrity Institutions

  • The institutions have been starved of resources and subjected to targeted criticisms, with some being blamed for not delivering on their assigned tasks.
  • The report emphasizes that significant support must be granted to the Office of the Auditor General (OAG), Budget Finance Committee (BFC) of Parliament, Central Bank of Somalia (CBS), National Civil Service Commission (NCSC), and other governance institutions to fulfill their roles.

Importance of Sustained Support

  • The process is a long-term one, and the government and development partners should not be distracted by the proliferation of new financial accountability institutions that will fragment scarce reform capacity.
  • Somalia’s emergence from prolonged civil conflict has been constrained by poor economic governance and inadequate capacity of financial integrity institutions to formulate and implement sound policies for economic and social revitalization.

Assessing the State of Financial Integrity Institutions in Somalia

  • Accountability, transparency, and integrity are key pillars of good governance.
  • Where there is effective financial accountability, public sector performance is managed and reported fairly, and positive governance is observed.
  • However, Somalia’s recent governments have made modest progress at best in building credible financial integrity institutions to implement enhanced economic management, accountability, and transparency in government operations.

National Economic Advisers’ Assessment

  • The recently established National Economic Advisers (NEA) of the National Economic Council initiated a process of undertaking comprehensive assessment on the state of the economic and financial governance in the country.
  • The results of this assessment will be submitted for discussion and deliberation at the NEC’s consultative meetings.

Challenges Faced by Financial Integrity Institutions

  • The collapse of central government authority, destruction of state institutions, and prevalence of violence and insecurity have all posed significant challenges to financial integrity institutions in Somalia.
  • Despite these challenges, the 2012 Provisional Constitution of the country provides fundamental guarantees - civil and political rights of citizens, legal protection, and democratic processes for political and economic competition.

Conclusion

The report concludes that sustained support is necessary to address real problems and challenges facing financial integrity institutions in Somalia. It is imperative that the government and development partners provide the necessary resources and support to empower these institutions to perform their functions effectively.