The Financial Governance Committee (FGC) was established in early 2014 by mutual agreement between the Federal Government of Somalia (FGS), donors, and international financial institutions (IFIs) to provide a forum for dialogue on strategic financial governance issues.
By its composition, the FGC is a hybrid Somali-international body that is expected to meet every four to six weeks. The objective of the FGC is to improve financial governance in Somalia, as a foundation for overall good governance, economic development, and political stability. It allows the FGS to access independent and transparent international advice on policy and implementation modalities in important areas of financial governance.
The FGC is financially supported by the World Bank administered Multi-Partner Fund (MPF), whose support makes the FGC possible. Nine donors have generously committed funds to the MPF. These include the Danish International Development Agency (DANIDA), the Commission of the European Communities (EU), the Finnish Ministry for Foreign Affairs, Italian Agency for Development Cooperation, the Royal Norwegian Embassy, the Swedish International Development Cooperation (SIDA), the Swiss Agency for Development Co-operation (SDC), the United Kingdom’s Department for International Development (DfID), and the World Bank State and Peace-building Fund (SPF).
ROLE/ACTIVITIES
The role of the FGC is to:
- Provide a forum at which members can discuss sensitive or confidential financial governance issues and agree upon actions that should be taken to overcome challenges or weaknesses.
- Provide direct policy and technical advice – or source that advice from external experts – on critical financial governance issues to Somalia state institutions and/or international partners.
- Oversee progress and actions specifically in the areas of asset recovery, public financial management, and public procurement, and any other specific financial governance issues requested by the government.
- Provide temporary oversight and review of future concession and public procurement contracts with or above a value of US$ 5 Million until such time as functional national procurement systems have been established as provided for under the draft Public Procurement, Disposal and Concessions Act (2015).
- Strengthen transparency on financial governance by sharing information on issues for which the FGC has the responsibility and by encouraging Somali state institutions to make information available.
- Issue regular reports on financial governance challenges and progress, and the extent to which FGC recommendations have been implemented by key stakeholders.
- Facilitate the role and strengthening of Somali financial governance and oversight institutions and support the development of a broader public dialogue on financial governance.
MEMBERSHIP
Members of the FGC are drawn from Somali institutions and international partners. The agreed composition of the FGC is as follows:
- Ministry of Finance (Chair);
- Governor of the Central Bank of Somalia;
- Representative, Office of the President;
- Representative, Office of the Prime Minister;
- Solicitor General;
- Chair of Parliamentary Finance Committee;
- World Bank delegate;
- African Development Bank delegate;
- Donor delegate;
- IMF observer/adviser.
SECRETARIAT
Members of the FGC are drawn from Somali institutions and international partners. The agreed composition of the FGC is as follows:
- Ministry of Finance (Chair);
- Governor of the Central Bank of Somalia;
- Representative, Office of the President;
- Representative, Office of the Prime Minister;
- Solicitor General;
- Chair of Parliamentary Finance Committee;
- World Bank delegate;
- African Development Bank delegate;
- Donor delegate;
- IMF observer/adviser.
AREAS OF FOCUS
FGC roles cover the following:
- Public Financial Management
- Fiscal Federalism
- Oil and Gas
- Procurement, Contracts, and Concessions
- Central Bank Governance
- Asset Recovery and Disposal
- Other topics that may be addressed by the FGC, according to demand
FGC COMMUNICATIONS STRATEGY
The FGC Communication Strategy aims at improving internal and external communications, both within the FGC and towards a wider audience of stakeholders involved in strategic financial governance issues. Click the below to download the strategy.