By T. Roble
About $20 million in donor aid was not deposited at the Treasury Single Account at the Central Bank as dictated by law, a report by the Auditor-General says noting the funds could not be accounted for.
The report released Tuesday by Auditor General Mohamed Ali says out of $38.2 million grants from the European Union, Saudi Arabia and the UN Office of Project Support (UNOPS) only $19.8 million can be accounted for as they were deposited at the TSA in the Central Bank.
The remaining amount could either be held in offshore accounts, other accounts outside the Central Bank or misappropriated. Out of $17, 004, 816 disbursed by the European Union to the Federal Government in the 2018 financial year, $3.8 million was not captured as having been deposited at the TSA.
Out of the $20 million donated by Saudi Arabia in 2018, only $ 6,070,868was disclosed in the annual financial statements because the SFMIS captured the latter amount whilst the balance $ 13,929,132 was in an off-shore bank account which is not part of the Treasury Single Account, the report says.
The FMIS only captures records of funds deposited at the TSA in the Central Bank.
The funds, according to a briefing by Finance Minister Abdirahman Beileh and Accountant General Fatuma Farah to the Lower House early this year were in an offshore account in Turkey.
Only $ 535,292out of $ 1,254,743 from UNOPS was deposited at the TSA meaning more than half remained outside the purview of the FMIS.
SPENT AT SOURCE
The Auditor General’s report also questions the manner in which revenues by various government departments and agencies are accounted for. The report raises the red flag on $1.4 million which was collected and used at source without any reporting contrary to Financial and Accounting Procedure (FAPS).
Among the institutions mentioned are the Criminal Investigations Department ($ 577,01), Somali Civil Aviation Meteorology Agency collected (130,130) and Somali National University (556,276).
All departments, ministries, parliament and offices of the Prime Minister and President did not submit their annual financial accounts for auditing, the report indicates. Curiously, even the Office of the Accountant General which is tasked with preparing financial records of all public institutions for auditing failed to submit its accounts for auditing.