Mogadishu, Wednesday, August 21, 2024: The Council of Ministers of the Federal Government of Somalia, chaired by Prime Minister Hamza Abdi Barre, held a meeting this evening and issued an important resolution concerning the prohibition of depositing or holding government revenue in any bank account other than the Unified Treasury Account (TSA).
The Council of Ministers Approved the Following Resolutions:
Article 1: Prohibition on Managing Government Revenue Outside the Unified Treasury Account (TSA)
- In accordance with Articles 2(1)(r) and 4 of the Public Financial Management Act, 2019, all Federal Government of Somalia revenue must be deposited and managed exclusively within the Unified Treasury Account (TSA).
- As per Articles 4(2) and 42(4), it is prohibited to hold or manage government revenue in any bank account outside of the Unified Treasury Account (TSA).
- According to Article 4(3) of the Public Financial Management Act, 2019, government revenue includes all funds collected by government agencies, including all taxes, fees, and fines collected under various applicable laws and regulations.
Article 2: Government Agency Responsible for Revenue Collection
- As stated in Article 8(2) of the Public Financial Management Act, 2019, the Ministry of Finance is the only authority responsible for collecting, managing, and monitoring all types of Federal Government of Somalia revenue.
- Without compromising their public service duties, all other government agencies, whether civilian or military, are prohibited from independently collecting or managing government revenue, including but not limited to taxes, fees, and fines.
Article 3: Setting Tariffs
- In accordance with Articles 6(b) and 108 of the Revenue Administration Act, 2019, the Minister of Finance is the sole authority authorized to set and amend all tariffs related to government revenue, including but not limited to taxes, fees, and fines.
- Without undermining their role in implementing and facilitating revenue collection, all other government agencies, whether civilian or military, are prohibited from setting or amending tariffs related to government revenue, including taxes, fees, and fines.
- In compliance with Articles 6(b) and 108 of the Revenue Administration Act, 2019, the Ministry of Finance must conduct a comprehensive review of all current tariffs related to the various sources of Federal Government revenue to ensure that all tariffs, including those for taxes, fees, and fines, align with the country’s economic conditions.
Article 4: Review of Non-Compliant Contracts and Agreements
- To ensure compliance with legal provisions and to prevent financial risks, all financially impactful agreements must be aligned with the National Procurement Act, 2016, and the Public Financial Management Act, 2019.
- All international agreements with financial implications that the Federal Government of Somalia has with foreign companies must be reviewed and aligned with the law before their renewal when their term expires.
- The Ministry of Finance is instructed to prioritize and regularly disburse payments arising from contracts between the government and private companies to avoid legal penalties.
- The following agreements are annulled:
- The agreement for electronic container tracking services.
- The agreement for container cleaning services.
- The sanitation agreement with the local government.
Article 5: Miscellaneous Provisions
- The fee for scanning goods arriving at the Mogadishu Port is to be reduced by 50%, with the revenue collected to be deposited into the Unified Treasury Account.
- Somali traders importing goods through Somali ports are required to obtain a quality assurance certificate for their goods from Veritas, the entity designated by the Somali government for quality control.
- Unlawful facilitation fees charged to traders at the port and airport have been abolished.
- Officials and staff of Alport Mogadishu, customs officers, and other security agencies are prohibited from imposing any restrictions or delays that may incur additional costs on goods at the port.
- The Federal Government of Somalia must develop a plan to streamline services at the Mogadishu Port.
- Customs brokers and shipping lines are prohibited from charging traders unlawful facilitation fees.
- Fees charged to trucks leaving control points in Mogadishu, such as those in Afgooye and Balcad, have been abolished.
- The fee for the Port Access Permit has been reduced to $40, with the previous $110 charge abolished.
- All costs associated with the so-called container breaking activities have been abolished. Any party involved in charging this now-prohibited fee will face legal action.
- The Ministry of Commerce is instructed to investigate and consult on complaints and disputes among traders and to present recommendations to the Council of Ministers.
- The Ministry of Transport and Civil Aviation is instructed to develop a plan to address complaints related to the transport of goods from the Mogadishu Port and to present recommendations to the Council of Ministers.
This resolution underscores the Federal Government’s commitment to ensuring transparency, efficiency, and legal compliance in the management of public funds and government operations.
_____________________________________________________________________________________Xafiiska Wararka Qaranimo Online | Mogadishu, Somalia
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