More than $20 Million missing from Somalia government’s treasuries

July 2, 2024

Mogadishu – The nation’s Auditor General, Mr. Ahmed Isse Gutale, held a press conference today to disclose new information regarding an investigation conducted in two Somali government offices.

During the conference, the auditor revealed that a comprehensive investigation had taken place at the Ministry of Labor and Social Affairs’ foreign workers’ work permit offices, as well as the immigration and citizenship extension service for foreigners. The investigation uncovered involvement in corruption and fraudulent activities.

Ahmed Isse Gutale stated that more than $20 million is missing, those funds were not deposited into the central treasury of the Somali government.

He further explained that the work permit offices and the extension service had collected a total of $33,370,260 between March 8, 2018, and April 19, 2023. However, only $12,437,690 of that amount was deposited into the government treasury. This means that there is a discrepancy of $20,932,570, which remains unaccounted for during the five-year period.

“The income collected by the work permit offices and the foreign workers of the Ministry of Labor and Social Affairs, as well as the extension service for foreigners in the country, between March 8, 2018, and April 19, 2023, amounted to $33,370,260. However, only $12,437,690 of that total was submitted to the government treasury through the SFMIS system,” Gutale clarified.

He added, “The difference between the reported income and the actual is $20,932,570. This is the amount of income that the audit revealed to be missing from the government treasury, as it was not deposited into the central government’s account.”

The national auditor went on to emphasize that the embezzlement of these funds has had a detrimental impact on the central government. He further noted that it has resulted in the government accumulating debt to pay the salaries of government employees, the military, and parliamentarians.

“The loss of $20,932,570 is a significant factor contributing to the decline in government income and the strain on the central treasury. This has forced the government of Somalia to seek loans and subsidies solely to cover employee salaries, be it for the military, parliament, or civil servants,” he reiterated during the press conference.

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