By Dawan Africa - Reporter
Mogadishu(Mogadishu24)-The Federal Government of Somalia has accused Turkish owned companies responsible for the Port and Airport operations; Favori LLC and Albeyrak for failing to adhere to income verification procedures enshrined in the mutual benefit agreement between the Government and the companies. These two Turkish firms have overseen the operations of Mogadishu Airport and Port for nearly a decade.
This came after the Auditor General of Somalia, Ahmed Issa Gutale, revealed that these companies have provided inaccurate information about their revenue, possibly with the intention of reducing the Government’s share of benefits.
“The Federal Government of Somalia has the right to claim 25% of the income generated by Favori LLC, while the second mutual benefit agreement with Albayrak grants the government a 62.17% share of Albayrak’s income,” reads part of the benefit agreement.
The combined revenue obtained by the government from both companies during 2022 financial year is $32,442,286.00, which was distributed between Albayrak ($29,332,006.00) and Fivori LLC ($3,110,280.00), but fell below the projections as stated by the government’s financial advisors.
Mr. Gutale further highlighted the need for more transparent and clear information regarding the financial inflows and outflows of these two companies.
However, this move might also face several consequences from Somalia’s international partners. These two companies in the report are of Turkish ownership, which play an essential role in assisting the Somali government with security-related concerns and its efforts to combat terrorism.
Somalia’s goal to have self-sufficiency both financially and security is demonstrated in the government’s efforts to curb corruption and Al-Shabaab militants. Through this goal Somalia’s hope to have debt relief are expected to be successful.
