Can Minister Of Finance Present An Honest ‎Revenue Estimates To New Parliament ‎During 2006 Budget Discussions?‎

By Ahmed M.Gedi (sanjab), London, UK

1. Over the 13 years Somaliland Parliament did not fulfill its mandate in accordance with Clan-agreement ( CAHDI_BEELEED ) enacted in Borama for the period 1994-2000 and not in accordance with the Constitution for the period 2001-2005 as they failed to scrutinize and evaluate annual operational activities of the government. The out-going members of Parliament behaved as if they represented the interests of the Executive Body (government), instead of the general public who selected them to represent their interests, since they used to approve fictitious Budget Proposals that did not report collected revenues from public, but not accounted lawfully. Also they did not bother to ascertain whether the Government expended public funds in accordance with the laws of the country or otherwise. So, we are all waiting to see whether H.E. the Minister of Finance Mr.Cawil, will have the courage to submit an honest budget proposal which is different than the old budget documents of previous years to New Parliament. As the most Senior Public official ACCOUNTABLE to the nation on all issues pertaining to Public Finance, we hope the Minister will open an honest dialogue with the MPS and present to them in detail the financial position of the country and the constraints facing Finance Sector of the government. Hopefully such a dialogue will give us an indication of how he plans to reconcile his books for the period 2002,2003,2004 & 2005, since no final accounts has been presented to out-going parliament as required by the constitution.

2. In the past years certain revenues collected from the citizens of Somaliland was not brought to account, as required in the Accounting procedures specified in the Financial Regulations of the State for reasons that has not been explained to the public by the Government or other State bodies. Such revenues did not appear in the Annual Budgets presented to previous Parliament over the past several years. There are certain revenues raised through un-authorized taxation scheme i.e. tax surcharges to foreign passport holders including Somalilanders from the Diaspora. Other revenues raised through legal taxation but not accounted into the books maintained by the Accountant General are:-

1. Taxes charged on imported Petrol, Diesel and lubricants to the country;

2. Taxes & fees collected from Airlines;

3. Taxes from exports of livestock;

4. Taxes from Berbera Port;

5. Numerous other taxes collected by Central Government Ministries and Parastatal Agencies.

3. There is also a special taxation of 2% levied on all imports and exports plus 2% on net income of businesses and employed citizens in public and private sector. Revenue raised through this mechanism was called ‘AAAFO’, which started sometime 1997 and according to my knowledge still enforce. It was intended to fund rehabilitation & reconstruction works of public and private properties destroyed during the last dirty-war in BURCO and other affected towns in Togdheer Region. From conflicting information I gather that the funds raised has been deposited into a bank account and administered by H.E. The President and the Governor of the Central Bank with effect from 2001. Since no annual operational report was submitted to out-going parliament, general public is unaware how these AAFO FUNDS has been utilized and to my knowledge it has not been audited by the Auditor General as required in the laws of the country.

4. It is the expectation of the general public that present Members of Parliament will honestly represent their interest and will oblige the government of Somaliland to account properly all taxes collected from them in accordance with laws of the Country. Let us pray and hope that our MISTRUST of our Public Officials’ Integrity in the past will be translated to mutual confidence and relentless co-operation after the thorny issues of non-compliance of the country is resolved in good faith. Let us fight corruption and refuse to buy JUSTICE from our PUBLIC SERVANTS with effect from January 2006.

By Mr. Ahmed M. Gedi (sanjab), Sec. General, Somaliland Justice & Welfare Party.

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