In a race against time, the Auditor General of Somalia, Ahmed Gutale, has announced the successful submission of vital audit reports for World Bank-funded projects, potentially averting a looming funding crisis.
This development comes just a day after a leaked World Bank letter to Somalia’s finance ministry hinted at possible funding cuts due to delays in receiving the essential financial documents.
Expressing his satisfaction on the social media platform X, formerly known as Twitter, Gutale stated, “The Office of the Auditor General FRS has successfully submitted the Audit Reports for all World Bank-funded projects implemented by the Federal Government of Somalia.” He acknowledged the collaborative efforts of the Ministry of Finance, Project Coordinators, and the World Bank in meeting the critical deadline.
The urgency surrounding the submission of the audit reports stemmed from the World Bank’s insistence on receiving them by March 31, 2024, following a missed initial deadline of June 30, 2023. The timely submission was crucial to maintaining the flow of financial support, including access to $275 million in International Development Association (IDA) Grants for 2024.
The World Bank had underscored the importance of the audit report, as the prolonged delay in auditing World Bank-financed projects posed risks to existing financial support and the initiation of new projects.
Failure to meet the extended deadline would have resulted in halted projects, suspended grant disbursements, and ceased financial negotiations and payments, severely impacting Somalia’s developmental agenda.
Somalia’s financial journey has seen significant progress, notably marked by its completion of the Heavily Indebted Poor Countries (HIPC) Initiative in December 2023.
This milestone led to a substantial reduction in the country’s external debt from 64% of GDP in 2018 to less than 6% by the end of last year.
The successful transition under the initiative facilitated $4.5 billion in debt forgiveness, highlighting Somalia’s commendable efforts in stabilizing its economy and securing additional financial resources.
The submission of the crucial audit reports not only ensures the continued support from the World Bank but also signifies Somalia’s commitment to transparent financial practices and effective project management.
As the country progresses on its developmental path, it remains crucial for all stakeholders to maintain strict adherence to deadlines and ensure the efficient utilization of financial resources for the betterment of the Somali people.
