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Naxar Nugaaleed

Cental Bank Somalia, pricewaterhousecooper and khaki envelopes

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:D but that is what I have correct, jacper's payment is coming from that salmon as well. For every piece he safes, his getting two percent of it. As it stands now, he has taken his share and let cat have the rest.

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YoniZ   

You got the picure now. PWC is tool effectively used by the donors and I'm pretty sure their share of th salmon is much much higher than the declared 2-4 cents. After all they are the masters in playing the add-on charges game.

Remember the salmon is handed to PWC first and the left-over is deposited to CBS. Poor cat will attack what is left and take all the blame.

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NGONGE   

Naxar Nugaaleed;966169 wrote:
all you guys are side stepping the only question, we know what the Somali members are and are doing, what is the role of this firm however? They were brought in with clear purpose and unless they speak up and clarify what happened, they are part of the problem. Am starting to think shaqaalaha shirkadan ay meesha uu dirsatay in aad tihin lol

Their purpose was to ensure that the money goes to the right areas. However, their job is not to run the country. These are accountants, Naxar. As long as they get invoices, receipts and records of payment, they have no business in actually proving that such receipts are genuine. Otherwise, they'll be forced to run the Somali central bank and that is not their job.

 

As for auditing; all they have to do is point the shortcomings to the Somali government (or donors) whenever an audit is done. And even there, it is not their job to publish their audits to the whole world (unless this was agreed to by the government and the donors).

 

The problem is with Somalia's internal auditors and not the external ones, saaxib.

 

p.s.

 

PWC is a business like any other. They may benefit from the corruption (since they get a commission for every "delivery"), however, they have a reputation to uphold and, frankly, the money made in Somalia is not large enough for them to risk their world renowned name.

 

The job they do here, though seemingly not of any use, is actually very important. It may not stop corruption but it pinpoints exactly where the fault lines exist. It's always been the job of the donors and the Somali government to ensure that these fault lines are fixed.

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NGONGE;966237 wrote:
Their purpose was to ensure that the money goes to the right areas. However, their job is not to run the country. These are accountants, Naxar. As long as they get invoices, receipts and records of payment, they have no business in actually proving that such receipts are genuine. Otherwise, they'll be forced to run the Somali central bank and that is not their job.

 

As for auditing; all they have to do is point the shortcomings to the Somali government (or donors) whenever an audit is done. And even there, it is not their job to publish their audits to the whole world (unless this was agreed to by the government and the donors).

 

The problem is with Somalia's internal auditors and not the external ones, saaxib.

 

p.s.

 

PWC is a business like any other. They may benefit from the corruption (since they get a commission for every "delivery"), however, they have a reputation to uphold and, frankly, the money made in Somalia is not large enough for them to risk their world renowned name.

 

The job they do here, though seemingly not of any use, is actually very important. It may not stop corruption but it pinpoints exactly where the fault lines exist. It's always been the job of the donors and the Somali government to ensure that these fault lines are fixed.

I fear that they have clearly failed at that, ensuring the money gets to the right people but also will not show us anything as far as exactly who is at fault. Today, the news is all about the UN accuses and bank governor accuses where pwc should have stepped in at least and painted a clear picture of what happened.

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NGONGE   

^^ How did the UN report manage to get access to such information without a full audit? How did they manage to get the name of the cashier and the amounts withdrawn by him?

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LOL NG,

i don't think Naxar understands the role of an auditor. As far as anyone knows PwC could have told the SFG.

Naxar, If PwC were appointed in 2009, how did the Abdullahi's admin hired them, didn't he resign 2008?

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Zu not sure but according to the article above they started in 2009. As for audits, what kinda takes four years? Again, according to that article they were supposed to give reports to the UN every 15 days. Surely if they did their job, the UN would have been alerted to these activities much much earlier.

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I am however baffled by this responses, I am no accountant but PWC was a mechanism put into place to ensure that this kinda stuff doesn't happen. There is a failure, and we should know why that failure happened instead of snorky remarks about the job distributions of accountants and book keepers.

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Carafaat   

NGONGE;966237 wrote:
Their purpose was to ensure that the money goes to the right areas. However, their job is not to run the country. These are accountants, Naxar. As long as they get invoices, receipts and records of payment, they have no business in actually proving that such receipts are genuine. Otherwise, they'll be forced to run the Somali central bank and that is not their job.

 

As for auditing; all they have to do is point the shortcomings to the Somali government (or donors) whenever an audit is done. And even there, it is not their job to publish their audits to the whole world (unless this was agreed to by the government and the donors).

 

The problem is with Somalia's internal auditors and not the external ones, saaxib.

 

Isnt the Ministry of Finance the internal auditor of the goverment? So any shortcomings in the checks and balances of the system should be fixed by the internal auditor. The Central Banks only acts as the cashier/treasury of the goverment.

 

The issue here is being politised. Not sure why.

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NGONGE   

^^ Adna waad iska hadasha, saaxib. The whole point of PWC being brought in was because none of these minstries had the capacity to carry out such work.

 

Naxar,

 

Did you read the articles you posted, saaxib? I am not aware of the details of the deal but simply going by what you yourself posted.

 

In it, it says that PWC will act as a go between. It will recieve the money, inform the ministries that it did. They request to withdraw the money and show PWC that the request matches with their budgets. They sign for it and provide reciepts.

 

As long as the above is done, PWC (according to the evidence from your reports) would have done their job. The only sticking point is the 15 day reporting. But who is to know that they have not been doing that every fifteen days since 2009? Who knows if the UN was turning a blind eye to it now?

 

At any rate, the UN would not have found the name of the cashier or the Colonel without having been given that information by PWC (remember the signatures and receipts?).

 

The problem can't be with PWC, saaaxib. The problem is coming right from inside Somalia.

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Carafaat   

Naxar Nugaaleed;966054 wrote:

The experts said Somali Finance Minister Mohamud Hassan Suleiman had tried to reduce the scale of the patronage system, but "it is so pervasive as to be beyond his control.

 

According to Central Bank accounts, a cashier at the Ministry of Finance, Ahir Axmed Jumcaale, was responsible for withdrawing the greatest amount.

The Central Bank is ordered by the Goverment for the paynents to the individuals mentioned in the report. Its the Minustry of Finance ordering and responsible for the financial system. When PwC is gone, it will still be the Ministry of Finance jobs to make sure a system is in place.

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Naxar, got it... So PwC were appointed in 2009 and Yusuf resigned in 2008? you said few times they were appointed by Yusuf's regime. I think you are misinforming the people. not cool man!

 

as for the job description, what NG is explaining to you is how the audit works. they have no power other than informing the UN, Donors and the Somali government. It is not their responsibility what these groups do with the reports, makes sense?

 

The buck stops with SFG, The UN and the Donors; The PwC will be in trouble if they reported everything to be ok and the UN found out the stolen money through other channels.

 

Either case, The UN and Senior SFG have to take responsibility and someone has to be accountable!

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Apophis   

Naxar Nugaaleed;966344 wrote:
I am however baffled by this responses, I am no accountant but PWC was a mechanism put into place to ensure that this kinda stuff doesn't happen. There is a failure, and we should know why that failure happened instead of snorky remarks about the job distributions of accountants and book keepers.

I'm baffled that you're baffled.

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Carafaat   

Somalia appoints accountancy firm

 

Somalia's fragile government has hired the world's biggest accountancy firm, PricewaterhouseCoopers, to help ensure international aid is spent correctly.

 

The embattled administration has been asked by donors to demonstrate that funds will be spent properly, and not embezzled by corrupt officials. PwC has undertaken similar work checking how donor funds are used across Africa.

More than 200,000 people have fled clashes in Mogadishu since May.

 

PwC staff will find a Somali capital rocked by fierce battles between radical Islamist insurgents and pro-government forces.

"PricewaterhouseCoopers has been appointed to hold and manage the pledged and allocated funds for institutional capacity building and development [in Somalia]," the firm said in a statement.

 

It declined to go into detail about the work, citing client confidentiality and security issues.

But it is thought a team of at least 20 staff, based in Nairobi, capital of neighbouring Kenya, will operate in and out of Somalia, helped by local agents on the ground.

 

They will administer via a central bank account some of the $213m (£132m) pledged by donors in Brussels in April towards boosting security in the failed Horn of Africa state.

PwC will check Somali ministries' spending plans tally with donor expectations, before releasing the cash and ensuring it is spent transparently.

It is understood the firm will receive a commission of between 2-4% on all funds that reach their intended destination.

A spokesman for the Somali transitional federal government said in a statement: "This is a big step in reconstructing Somalia. In addition, this will enhance transparency and accountability." Somalia has not had a stable central government since Siad Barre was ousted in 1991.

Naxar has a point here. PwC jobs was not only to function as the external auditor but was but in place by donors to function as the check and balance in the whole system as well and at the same time earning from each transfer.

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NGONGE;966348 wrote:
^^ The only sticking point is the 15 day reporting. But who is to know that they have not been doing that every fifteen days since 2009? Who knows if the UN was turning a blind eye to it now?

but this is what we need to find out and we are not going to do that by pointing at the obvious and saying Somali Officials are corrupt

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