FGC Press Release – 22nd January 2018
Financial Governance Committee welcomes the President’s Announcement on Public Land
The Financial Governance Committee (FGC) today held its 27th meeting at the Ministry of Finance Building in Shangani District, Mogadishu.
The FGC welcomed H.E. the President’s recent announcement halting all leasing and disposal of public land. The FGC has previously raised concerns about the apparent lack of transparency surrounding the disposal of public property. Efforts to enhance the transparency and of public land management
and competitiveness of any leasing or disposal are essential to mitigate perceptions of State corruption and enhance value for money Government. The FGC will update the recommendations of its 2017 Report on the Immediate Protection of Public Property in light of the President’s directive, and provide suggestions on next steps.
The FGC received an update from the Federal Government on the fiscal federalism discussions held between the Ministry of Finance and the Finance Ministries of the Federal Member States in Kismayo in December. The FGC was encouraged that all parties expressed a desire to move forward the revenue harmonisation agenda in 2018. The FGC also welcomed the Federal Government’s commitment to discuss and agree tuna licensing and revenue sharing arrangements with Federal Member States in
advance of the 2018 Tuna season. The FGC discussed the need to strengthen the inter-governmental fiscal transfer system, by developing objective criteria for transfers and requiring expenditure reports from transfer receipients.
The FGC also discussed the progress the Federal Government is making in renegotiating various contracts. It welcomed the news that Economic Committee of Cabinet has approved a set of Interim Procurement Procedures to guide public procurement whilst the procurement institutions stipulated in the 2016 Procurement Act are in the process of formation. The Ministry of Finance intends to hold a meeting of the Interim National Procurement Board and sensitise all Spending Agencies on these Interim Procedures in the coming weeks.
Notes to the Editor: Background on the FGC The Federal Government of Somalia (FGS), together with the World Bank, established a high-level hybrid institution to increase transparency and accountability on key financial governance issues in 2014. The Financial Governance Committee (FGC), funded by the Multi-Partner Fund (MPF) for Somalia, provides
predictable, reliable funding for its basic operations, and technical assistance to help advance its work program. Membership of the FGC is composed of the Minister of Finance (Chair), Governor of the Central Bank, Chair of the Finance Committee of Parliament, representative of the President’s office, representative of the Prime Minister’s office, State Attorney General and international delegates representing the World Bank, African Development Bank, IMF and Donors1.
The FGC allows the FGS to access independent and confidential international advice in important areas of financial governance, including Central Bank governance, asset recovery, contracts and concessions, fiscal federalism and public financial management. The FGC also has a formal oversight role with respect to high value Government contracts and concessions, and implementation of public financial management reforms.
Since its establishment, the FGC has published three reports on FGS contracts and concessions2 , and issued confidential assessments for 19 contracts, which the Federal Government of Somalia (FGS) has used to inform decision-making. Of the contracts reviewed by the FGC, three incorporated FGC
amendments and were signed, eight did not proceed, one was allowed to expire, and only two went forward without incorporating recommended amendments3 .A further two are under renegotiation, while the FGC’s comments on the remaining three continue to be addressed.
The FGC also supports the Interim National Procurement Board (INPB), which is responsible for overseeing the procurement of FGS contracts and concessions until such a time as the provisions of the 2016 Procurement Act are implemented. The INPB has held three meetings since August 2016. It is currently supporting the review and renegotiation of the terms of three concession agreements for revenue collection (vehicle license plates, road tax, property transfer tax), and providing oversight to the
current tender for SNA rations. It has also provided feedback on draft contracts that have been submitted to it by Federal Government institutions for review.
The project is funded through the World Bank-administered Multi Partner Fund, with the support of the following partners: United Kingdom’s Department for International Development (DfID), the European Union (EU), the Swedish International Development Cooperation (SIDA), the Royal Norwegian Embassy,
Danish International Development Agency (DANIDA), the Swiss Agency for Development Co-operation (SDC), the Ministry of Foreign Affairs of Finland, United States Agency for International Development (USAID), Italy’s Ministry of Foreign Affairs and International Cooperation, and the World Bank’s Stateand
Peace-building Fund (SPF).
1African Development Bank delegate and Prime Minister’s Office representative are currently under appointment.
2Copies available on MoF website: http://mof.gov.so/en/contracts-and-concessions/
3 See MoF website for further details on these contracts