Press Release
Somali Federal Government launches Public Financial Management Reform (PFMR)
(Mogadishu, Thursday 04th April 2013) The Federal Government of Somalia launched a well anticipated Public Financial Management Reform (PFMR) today in a meeting convened by the Minister of Finance and Planning Hon. Mohamud Hassan Suleiman.
A final report on a self-assessment carried out by the Ministry on the current public financial management system was presented to the donor partners in Mogadishu, to showcase the shortcomings and the government’s strategic plan on addressing the key challenges as well as reinstituting credible and transparent financial management system in Somalia.
The meeting underlined the significance of the Public Financial Management Reform to both the Somali Government and International partners as lively and encouraging discussions took place over the three-hour period.
The Finance Minister re-iterated the prioritization of Public Financial Management Reform per the government’s six-pillar policy. “We have repeatedly emphasized the importance of a well managed financial system. PFM reform is a good thing in and of itself, because it will improve our ability to deliver on our other key priorities by making the most efficient and effective use of public funds. Transparency and accountability will also gain us other benefits, such as progress with our international partners on arrears clearance and International Financial Institutions reengagement”. He said.
The Finance Minister also highlighted quick wins in the areas of revenue generation, availability of the first institutional comprehensive budget reports & Financial statements for public release in few days.
The PFM self-Assessment report and action plan envisages an impressiveline-up of reform activities in all sectors involving public financial management (PFM) roles. Over the next four years we intend to:
1. Improve the transparency and openness of the national budget process,
2. Heighten fiscal discipline through internal and external controls,
3. Focus public expenditure on priority areas of Government programs,
4. Enhance the efficiency and effectiveness of public expenditures and Strengthen overall financial management and accountability
The Minister underscored that “Our level of political commitment provides a solid platform for taking through the reforms that are set out in our proposed strategy. We will sustain and nurture this commitment over the implementation period. I understand that sustaining support for reform of this nature needs also to be translated more firmly into tangible political realities. For example the result of these actions should be:
• Securing both a growing and a more predictable revenue base which in turn should guarantee a more predictable flow of resources to line ministries
• Strengthening financial institutions, systems and processes, thereby restoring confidence in Government systems which will in turn increase the use of these systems by external parties.
The Minister while discussing the managing and harnessing of development partners support stated that “This requires a concerted effort on the part of the international community to provide the resources needed for the implementation of this PFM reform and action plans. We are grateful for both the financial and political commitments expressed by our friends in the International community for the implementation of the PFM action plan and strategy”.
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