The World Bank has delivered an unprecedented stern warning to the Federal Government of Somalia regarding…
The World Bank has delivered an unprecedented stern warning to the Federal Government of Somalia regarding the lack of submission of audits for grants and development programs. In a written statement seen by Horseed Media, the bank informed Somali financial authorities that required financial statements have not been submitted by the December 31, 2022 deadline.
Despite Somalia requesting a 9-month extension, the audits remain outstanding. The World Bank, unwilling to accept further delays, has now set a new deadline of March 31st. If the audits are not provided by that date, the bank warns it will take decisive action:
- No new planned projects will be released
- No extensions granted for current projects
- All bilateral negotiations, including those planned for April, will be postponed
- Funding suspended for all planned and ongoing projects affected by the missing audits
- Suspension of grants tied to the unsubmitted reports
- Directors of current and planned projects to receive funds will be suspended
The bank has specifically threatened to suspend three major projects originally scheduled for release and disbursement in April.
This crisis comes at a time when the Federal Government of Somalia has reported domestic economic growth, but maintains more support is needed. The World Bank’s escalating demands for financial accountability put significant development assistance at risk.
Submissions of complete and proper audits by the March 31st ultimatum will be essential for Somalia to avoid disruptive sanctions and keep open channels for future aid from the World Bank.
