IS NON COLLECTION OF CUSTOMS DUTIES FROM MS Total Red Sea Over 8 Years, Be Classified As CORRUPTION Or GROSS NEGLIGENCE By The Authority?
| Front Page |
TO: Mr. Awil Ali Dualeh,
H.E.The Minister of Finance.
CC: Mr. Mohamed Haji Mohamoud O.Hashi,
Honorable, Chairman, Economic & Investment Committee
Of The Parliament.
CC: Auditor Generals’ Office.
An incomplete copy of the Memorandum of Understanding between the Government Of Somaliland and M/s Total was retrieved from the Internet. All annexes mentioned in the M.O.U could not be traced. We could not also trace a signed M.O.U and can not therefore confirm that this document is the final version, however, some issues do need the attention of the public in order to make them understand the importance of the issue under consideration. According to the document, the following formula was to regulate the pricing structure with effect from 13/05/1998:-
- management fee payable to Total per annum 10% of operating costs*….as determined by TOTAL;
- C.I.F value based on market price when the operation became effective+ throughput costs( i.e. operating costs determined by TOTAL);
- Service fee ( to be collected from p.o.l buyers from the depot determined by TOTAL);
- importers margin ( determined by TOTAL);
- depot rental per volume as determined by TOTAL;
- Reconstruction tax per volume determined by TOTAL;
- Prevailing customs duties, sales tax and other municipal taxes.
The elements shown above will constitute the price of the product when it is ready to leave Berbera Port. If the document we are using is genuine, Ministry of Finance should have raised an invoice furnishing total customs duties and taxes due for the Central and Berbera Local government for the quantities of POL products issued out of the depot at the end of every 30 days as clearly stipulated in para 12 of the document with effect from the date M/S Total Company has effectively taken over the operations of Berbera P.O.L Tanks. The sum involved is significant and may amount to approximately $ 30 million. This sum could have financed the Health infrastructure of 40 urban towns which are not functional, although all communicable tropical diseases are incurring heavy costs to our poor communities.
In accordance with the Financial Regulations of the State, all public officers are required to handover their respective responsibilities to whoever is taking over the responsibilities of their positions. So in order to track down how things went wrong, we are compelled to ask Mr. Awil Ali Duale, H.E.The Minister of Finance to disclose to the public whether the handing over report he received from the former Minister of Finance has actually addressed this issue and if so should provide explanation as to why collecting the arrears of revenue from M/S Total Red Sea, Ltd. For the period 1999-2002 could not be executed in accordance with the law. A detailed and analytical report will be prepared as soon as we get hold of a complete copy of the MOU. It should be noted that the government could not present to the Parliament a statement providing the assets of the state, arrears of revenues outstanding against officials, non officials & other bodies and of course loans to government employees and agencies, since no final accounts have yet been presented to parliament for reasons need to be explained by the Auditor General’s Office and the Director General of the Ministry of Finance..
By Mr.A.MGedi ( sanjab).
Secretary General, SLD Justice & Welfare Party (UCID).
Home | Contact us | Links | Archives