Question to the Foreign, Commonwealth & Development Office:

To ask Her Majesty’s Government what information they have about the alleged misappropriation of public funds involving United Kingdom companies cited in Annex 5 to the Somalia report of the United Nations Monitoring Group on Somalia and Eritrea published in October 2014 (S/2014/726).

There were no specific allegations of misappropriation of public funds involving UK companies in the UN Monitoring Group’s October 2014 report. However, the report notes the phenomenon of “secret contracting” involving Somali natural resources and national assets. The rise of this phenomenon is particularly concerning. The British Government works in close partnership with the Somali authorities and other international partners, such as the World Bank, to improve the overall transparency and accountability of public financial management in Somalia. We recognise that much has been done over the last two years to improve the very poor financial management systems that the Federal Government of Somalia inherited in 2012. We welcome in particular the introduction of an automated financial management information system and the establishment of a “Financial Governance Committee (FGC)”, a forum which has enabled the International Financial Institutions to give advice on reform of asset management, public sector procurement, and public financial management. The FGC also reviews government contracts, which has resulted in the termination and renegotiation of some major contracts. We continue to monitor closely and support efforts to improve Somalia’s public financial management.