AS information ministry DG Hasan Omar Horri Explains importance of PFM at the Sidelines of the Workshop hosted by the ministry of finance in Borame town
By: Yusuf M Hasan
Somalilandsun- The government of Somaliland is in pursuit of decentralizing its operations thence apt public service provision at all levels of governance.
This was the mutually acknowledge during a ministry of finance hosted Public finance management workshop in Borame town Awdal region, where participants were ministerial Director Generals as well departmental heads with direct supervision of fiancés or cross cutting responsibilities in all Somaliland government agencies.
In the sidelines of the Workshop the Director General at the ministry of information Hasan Omar Horri gave a detailed brief to Somaliland national tv as pertains, what is PFM and subsequent importance to the nation.
To begin his briefing DG Hasan Horri first explained on the ongoing workshop in which he and colleagues are attending in the Awdal regional capital, “Thanks to the ministry of finance all officials with government finances responsibilities are meeting to discuss decentralization more so as pertains the budget”
Stressing on the importance of a streamlined Public Finance Management system in every country, DG Horri informed that “PFM refers to the set of laws, rules, systems and processes used by sovereign nations (and sub-national governments), to mobilise revenue, allocate public funds, undertake public spending, account for funds and audit results. It encompasses a broader set of functions than financial management and is commonly conceived as a cycle of six phases, beginning with policy design and ending with external audit and evaluation. A large number of actors engage in this “PFM cycle” to ensure it operates effectively and transparently, whilst preserving accountability.
On the process specific to Somaliland which started in 2006 under cooperation between the government of Somaliland with the ministry of finance as lead agency and the world bank, DG Horri said the end result expected , by 2017 is to improve government’s capacity and systems to utilize public funds towards meeting the NDP goals, and ultimately those of Vision 2030
Designed to improve government’s capacity and systems to utilize public funds, towards meeting the National Development Plan goals and those of Vision 2030, The aim says Horri “is to ensure that the Somaliland Government spends with the highest possible efficiency, transparency and accountability in the allocation, management and use of public finances.
The ministry of Information director general stressed on the fact that the workshop in Borame was geared towards ensuring that “The strategy also adopts a “comprehensive approach” to enable different PFM sub-systems to support each other rather than operate in isolation” thence the meet by officials with public finance responsibilities.
Somaliland Public Financial Management (PFM) Reform Strategy encompaases five pillars namely
1. Economic and Budget Management
I. Economic management
II. Budget Formulation and preparation and
III. Fiscal Decentralization
2. Resource Mobilization which is basically the art of Domestic revenue Generation
3. Financial Management and Reporting
I. Accounting and reporting
II. Treasury and expenditure Management
4. Procurement and
5. Oversight and evaluation
I. External Audit
II. Internally Audit and
III. Parliamentary oversight
Thanks to the efforts of the ministry of finance and its partners, the five pillars of the PFM have been successfully put in place says DG Hasan Omar Horri adding that the ongoing workshop is the last step towards harmonizing proper PFM by the government of Somaliland.
Queried on the importance of PFM to the ordinary citizen, the DG said “PFM will not only facilitate transparent management of public funds, but see to it that the annual budget is formulated with the grassroots that is from district, region to nation, needs as guide” adding that this coupled with parliamentary oversight shall ensure that needs of the ordinary citizens are addressed nationwide.
Specifically according to Horri, the full implementation of PFM will allow citizens not only benefit directly from public funds but have a say in what, when, who and where services are prioritised
The Somaliland PFM Management Structure
Joint PFM Reform Steering Committee
The Joint PFM Reform Steering Committee (JSC) is chaired by the Minister of Finance, and donors are in attendance. Current key donors are: DfID, the EU, USAID and World Bank. It includes all PFM stakeholders and donors. This is to ensure leadership and coordination of the Program as well as maintain momentum as the reforms cut across many stakeholders including government, private sector, civil society, donors and development partners. The JSC will report to the Council of Ministers through the Minister of Finance.
Joint PFM Technical Committee
The Joint PFM Technical Committee (JTC) supports the JSC and members comprise of donors, implementing partners as well and government stakeholders. The JTC will also look at options for better integration across the seven Sector Coordination Forums.
PFM Reform Working Groups
PFM Reform objectives, outputs, strategies, activities and action plans have been identified and included in the PFM Reform Strategy. Strategies and activities are sequences in a coordinated manner to reflect government priorities over the medium-term period.
For the purposes of ownership, implementation will be mainstreamed with government activities, and for that reason, Component leaders are Government officials at Director level or equivalent. Component leaders are coordinated by the Pillar leaders under the supervision of the Director General of the Ministry of Finance.
Each Component leader establishes and heads a Component Working Group, bringing on board all stakeholders that are likely to be affected by the reforms. The Component leader submits regular feedback to the JSC, through the JTC.
PFM Reform Unit
A lean PFM Reform Unit, composed of experts with demonstrated expertise, supports the Minister of Finance. This Unit will be run and supported by long term international experts with demonstrated PFM and regional experience in development settings such as Somaliland. The PFM Reform Unit was established to facilitate implementation at Component level by facilitating coordination and coordination across all stakeholders.
