"The Select Committee has discovered agreements between the Somali Government and the two Hawala companies Dahabshiil and Salama Bank in which the Government borrowed 10 million US dollars from these Companies. Infect, 6 million dollars of that money has been deposited in the Central Bank of Somalia while 4 million dollars is missing"

The Parliament passed a resolution requesting that missing money be recovered and the person responsible to be identified.The Select Committee also requested the Attorney General to investigate this matter immediately after the Parliament passed the resolution. Paragraph 12 of the Final Accounts of the Financial Year 2013.

Today,the Government is completely silent about these matters.  However, the Auditor General and the  Ministry of Finance privately indicate that the person who collected the money on behalf of the Government was Mr Abdikarim Hussein Guled, then Minister of Interior and National Security and close ally of President Hassan Sheikh Mohamud. Currently,Mr  Abdikarim is the leader of newly formed regional administration of Galmudug and the money may have been used for his campaign to become President of that administration. In any case,there is strong suspicion of the complicity of the President in person? Indeed, corruption and misappropriation of public funds are rampant in Somalia.

"We call on the Treasury and the Central Bank to wire the amount to the accounts of the MP’s,” the report said.

The Treasure has also heavily invested in Somali embassies in foreign countries with the tune of over 1.5 million US dollars. The committee report termed the investment as outrageous, urging that such a huge amount of money should not have been spent on foreign embassies that do not have an economic and political significance to Somalia.

The committee report also question the whereabouts of $4 million out of the $10 million that was acquired as a loan from two Somali-owned financial service providers—Dahabshiil and Salaam Bank.

"We similarly stumbled on a very sophisticated money-laundering network that saw the loss of $4 million,” the report partly read, calling on the Attorney-General, Mr Ahmed Dahir to make a follow-up of the cash and the names behind the scheme.

LEAKED: Somalia MP’s expose corruption and money-laundering in the Finance ministry

The Somali parliamentary committee on Finance in the Federal Parliament has released a report that exposed the rot in the public funds management as the country reels from political and economic ruins that lasted for two decades.

The committee exposed poor management of the funds and instances of outright financial fleecing by the ministry employees.

The report, which was submitted to the speaker of the Federal Parliament Prof. Jawari on 25th of July this year, detailed the problems faced by the financial sector of the country. The report similarly recommended a number of measures to arrest the listed problems.

The committee, headed by Saman Mohamed Sheikh Dahir found out that the treasury contravened the laws of public funds allocations that was enacted by the federal parliament. It also found that the department of Treasury has failed to stick to the formula legislated by the legislators.

The report by the committee similarly unearthed that at least one million US dollars has been withdrawn from the national coffers that were not used as per the law. The committee called on the parliament to enact laws that prohibit such exercise in the future.

The committee accused the Treasury and the Central Bank of withholding the remuneration of former legislators.

"We call on the Treasury and the Central Bank to wire the amount to the accounts of the MP’s,” the report said.

The Treasure has also heavily invested in Somali embassies in foreign countries with the tune of over 1.5 million US dollars. The committee report termed the investment as outrageous, urging that such a huge amount of money should not have been spent on foreign embassies that do not have an economic and political significance to Somalia.

The committee report also question the whereabouts of $4 million out of the $10 million that was acquired as a loan from two Somali-owned financial service providers—Dahabshiil and Salaam Bank.

"We similarly stumbled on a very sophisticated money-laundering network that saw the loss of $4 million,” the report partly read, calling on the Attorney-General, Mr Ahmed Dahir to make a follow-up of the cash and the names behind the scheme.

The report continued, "The government of china paid the Somali government an aid of $1 million dollars through its Nairobi embassy, but the Treasury could not account for half the amount ($500,000).”

The committee also reported that the government lose millions of dollars in poor taxation systems and tax evasion, particularly by the communication companies, banking service providers and the hospitality industry that the committee believes if well managed could make the country independent of foreign aids and grants.

"The government don’t impose taxes on this money-making industry, thus rendering the country vulnerable,” the report said.

"The committee also came across a worrying trend in the Finance ministry where they financed constitutional orgernisation whose governing laws have not been approved by the Parliament like one agency that is charged with coordinating natural disasters,” the report said.

The committee now want the Attorney-General to present before the parliament within 45 days, all the laws of engagement between the government and the companies that manage the sources of income for the taxman like the airports and ports, for a closer review. The committee also recommended that a party representing the Somali government to be part of the management of the ports and the airports and all other sources where the taxman can hugely reap from.