(07-08-23) MOGADISHU – On Monday, in a contentious report issued by the Office of the National Auditor General of the Government of Somalia, significant concerns have been raised against two Turkish enterprises, Favori LLC and Albayrak, currently responsible for the management of Mogadishu’s airport and main port respectively.
Ahmed Isse Gutale, the national auditor, highlighted that both companies have failed to submit their obligatory annual financial statements within the mandated 90-day timeframe. “None of the two companies have shared with the government’s accountant general their audited financial reports,” Gutale expressed, raising concerns regarding transparency in the financial dealings of these firms with the Somali federal government.
Furthermore, the Auditor General’s office has yet to review the financial reports of Favori LLC and Albayrak. This prevents any confirmation of the mutual benefit agreements in place with the federal government. Gutale elaborated, “I have not been able to…confirm that the £32.4 million mutual benefit fee is accurately calculated based on the revenue earned by the two companies and the government’s share of that income.”
Shedding light on the revenue-sharing terms, Gutale stated that the federal government is entitled to 25% of the revenue Favori LLC generates from the Aden Adde airport. Similarly, the Albayrak company, which oversees Mogadishu’s primary port, is eligible for 62.17% of its income. “According to the mutual benefit agreements…the government has the right to receive 25% of the income earned by Favori LLC and 62.17% from Albayrak,” he reiterated.
The main objective behind the foreign management of these pivotal revenue sources – the airport and port – is the promise of significant development and modernisation. However, with these recent revelations, questions arise regarding the transparency and accountability of the companies in meeting their obligations to the Somali federal government.
