FGC Press Release – 4th December 2017: The Financial Governance Committee (FGC) today held its 26th meeting in Mogadishu. For the first time, the meeting took place in the new Ministry of Finance Building in Shangani, Mogadishu.
The FGC discussed the findings of the 2017 UN Somalia and Eritrea Monitoring Group (SEMG) report with respect to financial governance issues. It noted that the issues raised were already under discussion within the FGC, and encouraged the Federal Government to communicate publicly the steps it is taking to address them.
The FGC welcomed the Federal Government’s ongoing efforts to increase revenue mobilisation. It noted that personal income tax is now being levied on Federal Members of Parliament and Cabinet Ministers as well Federal Government employees. It welcomed the Federal Government’s continued progress in taking back responsibility for non-tax revenue collections from private contractors, and was informed that from November 2107 the Ministry of Transport had resumed responsibility for vehicle licensing.
The recent registration of the details of 947 SNA personnel to the Somalia Financial Management Information System (SFMIS) payroll module, which will enable payment of their salaries directly to their bank accounts. This represents a significant milestone in strengthening security sector expenditures.
The FGC encouraged the Federal Government to continue the registration exercise, and to explore options with the international community for aligning all SNA stipend payments behind FGS SNA salary payment reforms.
The FGC noted that the Federal Government will hold a Fiscal Forum meeting with Federal Member States in Kismayo the coming month, as part of its initiative to strengthen fiscal federalism. The meeting will also provide an opportunity to discuss currency reform and anti-counterfeiting measures with the Member States.
Finally, the FGC made a presentation on international experiences in natural resource revenue sharing to the Cabinet Economic Sub-Committee, which drew on the findings of a recent FGC advisory note. The Sub-Committee greatly appreciated the presentation and has proposed wider circulation of the presentation including to parliamentarians and Federal Member States.