Somali regional states suspend cooperation with federal finance ministry

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Somalia’s five federal states have announced a halt of their cooperation with the central government’s ministry of finance, citing violation of agreements.

The finance ministries of Puntland, Jubaland, Hirshabelle, SouthWest and Galmudug federal member states accused the central government of reneging on agreements signed previously to enhance fiscal policies in Somalia.

The federal ministry of finance reportedly stopped budget subsidies to the regional governments based on foreign lending or grants.

“The ministries of finance of the Federal Member States have suspended all cooperation with the ministry of finance of the government of Somalia until the ministry returns to the framework of the law and the implementation of the agreements mentioned,” according to a statement issued Tuesday evening.

The agreements on the working relations between the central government and the federal states were inked in Kenya, Uganda, and Somalia in 2019 and 2020.

Analysts say the move to cut the links with the central government by the federal states could damage the country’s economy.

The suspension of cooperation with the central government will remain in place until President Hassan Sheikh Mohamud’s government reverses “unconstitutional” decisions, the statement said. Enditem