Breaking Point in Somalia: How state failure was financed and by whom
Breaking Point in Somalia: How state failure was financed and by whom
The Federal Government of Somalia
1. The federal government of Somalia and the international community have up until now failed to transform the Somali state due to several complexities, the most significant being budget revenue management and institutional structures. The budget revenue mismanagement pre-empted the transformation process due to the lack of structured control systems and this is in spite of the relative adequacy it provides. The systems were to be developed by the federal government and international community but none of them undertook such initiatives. Indeed, the mismanagement is used for fueling further anarchy. The government has not structured her ministries and civil servants to embrace successful transformation.
2. The deliberate deficiencies of the government in developing functional structures as well as in developing accountable management controls have been conduits for budget diversion. The reconciliation budget for the period of 2013 to 2015 was US $1,168,379,299 and net expenditure by the government was US $163,766,637. The diversions of US $1,004,612,662 (86 percent of the total federal budget) were utilized in their own programme activities (private insurgencies, private investments, Islamic institutions, regions, and by parliamentarians); this has been fueling further anarchy in the country. The diversions occurred when the integrity institutions were all in place but President Hassan Sheikh Mohamud compromised them in regards to public disclosure.
3. The budget diversions were facilitated by omissions in accounting structures for the non-stateactors. However, it should be noted that this was a deliberate move by the government as its primary objective in the funds management is misappropriation. It is not known why the international community did not come on board to formulate budget control systems in view of the fact that the country was still in failed status. The formulation of the budget revenue control system was not a tall order for the two as it required some basic structures such as; sector based grouping, committees from sub-locations, locations, divisions, and district levels for monitoring and evaluations of their programmes.
Breaking Point in Somalia: How state failure was financed and by whom
Executive Summary ix
4. The federal budget diversions were secretly controlled by the seven Hawiye Cartel Groups (HCG) listed below. Similar cartel groups were also replicated by each of the states1 but this is isolated from this report discussion.
COMPOSITION OF HAWIYE CARTEL GROUPS
- Religious Groups;
- Social Groups
- Political and Security Groups
- Business Community Groups
- National Chamber of Commerce Groups
- Members of Parliament Groups; and
- Women Mobilization Groups.
Rapport: breaking-point-in-somalia
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