MOGADISHU (Halbeeg News) – Somali government has directed its member federal member states to submit their financial reports on expenditures and revenues, including internal control systems.
In a letter dated September 5, 2018, seen by Halbeeg News, addressed to Finance Ministries of regional states, Somali ministry finance asked the states to forward financial records and expenditures of the funds released by the exchequer from 1st January and 31st July 2018..
The letter addressed the finance ministries of Jubbaland, Galmudug, Southwest, Puntland and Hirshabelle states.
The report will help establish how funds released by the exchequer and those generated internally are used and accounted for by the states.
The federal states were told that the financial audit reports would be crucial for the process to convince international Financial Institutions to cancel the Horn of Africa nation’s debt.
Despite being one of the beneficiaries of the funds from the national government, it is not yet clear if the letter addressed to the Mogadishu local government but its name does not appear on the letter.
According to the IMF, Somalia’s external debt is about 5 billion U.S. dollars, but Mogadishu has not made a service or amortization payment since the onset of the civil war two decades ago, making it impossible to access loans from the IMF.
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