Our soon-to-be-released analysis of the Auditor General’s official audits—covering the Federal Government of Somalia’s transactions during the 2022–2023 fiscal years—reveals staggering irregularities that risk eroding public trust and undermining fiscal stability. With over $100 million in questionable expenditures flagged by the Auditor General, this report shines a bright light on Somalia’s pressing governance challenges.

Central to these findings is the $66.7 million in unverified concession revenues generated by major economic linchpins, including Mogadishu Port and Aden Adde International Airport. The Auditor General highlights concessionaires’ repeated failure to provide audited financial statements, casting doubt on the transparency of these significant revenue streams. This revelation underscores the need for more robust oversight to prevent concession revenues from vanishing into murky channels.

Equally concerning, the Auditor General identified $46.5 million in extra-budgetary funds that never made it into the official Treasury Single Account (TSA). Such parallel financial systems operate outside traditional controls, creating opportunities for potential abuse. Further compounding these fiscal missteps, $19.3 million in port fees was paid out directly to various entities without proper documentation or standardized disbursement protocols. These transactions, lacking robust accountability measures, underscore the systemic risks confronted by Somalia’s public sector.

The Auditor General’s reports also detail $5.7 million in revenues collected and spent at the source by multiple government institutions—diplomatic missions among them—in violation of the Public Financial Management Act. This practice bypasses established regulations, enabling financial mismanagement to flourish. Meanwhile, $13.48 million from the country’s buffer fund was drawn down without adherence to official Fiscal Buffer Guidelines, raising critical questions about the oversight of contingency resources.

Beyond these monetary concerns, the audits show serious gaps in monitoring World Bank-funded projects. Despite international support and stringent donor requirements, deficiencies in financial controls, reporting practices, and procurement procedures persist. As these problems repeat themselves across multiple programs, the scale of Somalia’s governance challenges becomes even more evident.

This upcoming analysis based on the Auditor General’s audits will be essential reading. Stay tuned as we break down these alarming findings, propose targeted reforms, and spotlight the path forward for securing Somalia’s public finances and restoring trust in government institutions.