BREAKING: All FMS have cut ties with FGS Finance Ministry due to corruption

[Dowlad]

Puntland take your MPS out of Mogadishu and pay their salaries in Garoowe, with your own pocket. The IC can help you if you struggle to afford. SFG only needs GS, HS and lower Shebelle. Reer bahal are taking the piss. They don't want to pay tax but want a share in SFG's budget.

 

[warside]

IMF are also asking the FGS to raise taxes (basically just Banadir) to get debt relief. And these FMS think they can dictate to the FGS on revenue sharing and debt relief as if they contribute anything to either.

HSM’s finally said enough. Hopefully he doesn’t back down

You seem to think IMF deals with FGS only, actually the conditions also apply to FMS, that's why they also have to report their revenues monthly to the FGS, you should read this report by the IMF which is Somalia review on June 17, they mentioned "FMS" 52 times, and do you know what the FGS said in that review report "Finance Ministers across all the Federal Member States (FMS) are fully committed to supporting the economic reforms needed to underpin the HIPC process, and technical cooperation has gathered pace". also in the report "A significant portion of budget support (an increase of 0.4 percentage points of GDP compared to 2021) is expected to be shared with FMS".
The problem is IMF were negotiating with Bayle but the new man said: nah I'll just risk complicating the matter, probably don't know how strict the IMF is and how they expect you to follow their guidelines.

 

[bidenkulaha]

You seem to think IMF deals with FGS only, actually the conditions also apply to FMS, that's why they also have to report their revenues monthly to the FGS, you should read this report by the IMF which is Somalia review on June 17, they mentioned "FMS" 52 times, and do you know what the FGS said in that review report "Finance Ministers across all the Federal Member States (FMS) are fully committed to supporting the economic reforms needed to underpin the HIPC process, and technical cooperation has gathered pace". also in the report "A significant portion of budget support (an increase of 0.4 percentage points of GDP compared to 2021) is expected to be shared with FMS".
The problem is IMF were negotiating with Bayle but the new man said: nah I'll just risk complicating the matter, probably don't know how strict the IMF is and how they expect you to follow their guidelines.

The ‘new man’ is under HSM’s directives. It would be foolish to think this isn’t coordinated especially given the Finance Minister met the World Bank a day before and IMF weeks before committing to IMF instructions/reforms.

Regardless 10% is still a significant amount of the budgetary support so I don’t see a contradiction in the paragraphs mentioned in that report

 

[Dowlad]

You seem to think IMF deals with FGS only, actually the conditions also apply to FMS, that's why they also have to report their revenues monthly to the FGS, you should read this report by the IMF which is Somalia review on June 17, they mentioned "FMS" 52 times, and do you know what the FGS said in that review report "Finance Ministers across all the Federal Member States (FMS) are fully committed to supporting the economic reforms needed to underpin the HIPC process, and technical cooperation has gathered pace". also in the report "A significant portion of budget support (an increase of 0.4 percentage points of GDP compared to 2021) is expected to be shared with FMS".
The problem is IMF were negotiating with Bayle but the new man said: nah I'll just risk complicating the matter, probably don't know how strict the IMF is and how they expect you to follow their guidelines.

Bayle was a corrupt idiot who never went to school. He is not even from Somalia but breakaway Somaliland. Puntland cannot make deals with IMF. The responsibility lies with SFG. Somalia doesn't need debt relief just to be more eligible to get into more debt. Puntland and others must pay tax like Mogadishu. If you refuse to pay tax than get the hell out and take your useless politicians with you.

 

[Dowlad]

The ‘new man’ is under HSM’s directives. It would be foolish to think this isn’t coordinated especially given the Finance Minister met the World Bank a day before and IMF weeks before committing to IMF instructions/reforms.

Regardless 10% is still a significant amount of the budgetary support so I don’t see a contradiction in the paragraphs mentioned in that report

Honestly I think 10% is too much for a people who contribute zero to SFG budget. Everything Puntland makes goes straight to Puntland. They don't share any of their profits with us. Giving them 10% is an insult to us.

 

[codewebsduh]

Do FMS pay taxes?

I am against HSM but I support this measure by the dowlad. These states are too loud mouthed and treacherous, they should ask Ethiopia to fund them.

The most interesting part of this is HSMs political intelligence, he knew Deni wasted all the budget in the election and thus this further weakens him.

 

[Marsh]

Akhi, you are trying to explain things to people who think this is their tax money. I want the IC to pull out so the whole thing collapses

@bidenkulaha went full unuka leh on the aid money .

 

[bidenkulaha]

Do FMS pay taxes?

I am against HSM but I support this measure by the dowlad. These states are too loud mouthed and treacherous, they should ask Ethiopia to fund them.

The most interesting part of this is HSMs political intelligence, he knew Deni wasted all the budget in the election and thus this further weakens him.

Deni asked for 50 million from HSM

 

[warside]

I found the agreements between finance ministers of FGS and FMS in 2019 which the new minister want to abandon, and the meetings were arranged by the World Bank who encourages them to meet regularly under the banner "INTER-GOVERNMENTAL FISCAL FEDERALISM FORUM".

 

[Dowlad]

I found the agreements between finance ministers of FGS and FMS in 2019 which the new minister want to abandon, and the meetings were arranged by the World Bank who encourages them to meet regularly under the banner "INTER-GOVERNMENTAL FISCAL FEDERALISM FORUM".
View attachment 236167

That was Farmajoo's government. We are a new government. Farmajoo was a nacas that put Somalia into bad deals such as giving Somalia's ocean to china for just $1 million. Puntland and others must agree to pay tax and contribute. Mogadishu alone cannot shoulder the burden.

 

[warside]

That was Farmajoo's government. We are a new government. Farmajoo was a nacas that put Somalia into bad deals such as giving Somalia's ocean to china for just $1 million. Puntland and others must agree to pay tax and contribute. Mogadishu alone cannot shoulder the burden.

Government agreements don't expire, it's not like last nights cambuulo, I think they wanted to do this sneakily but failed you will see that they will go back to the original agreement.

 

[Dowlad]

Government agreements don't expire, it's not like last nights cambuulo, I think they wanted to do this sneakily but failed you will see that they will go back to the original agreement.

How about Puntland and others fulfilling their part by paying tax? If you don't follow the law and the rules than why expect others to do so. Pay tax. You can't keep your wealth just for yourself and expect Mogadishu to share its wealth with you. The IMF wants you and others to plug in that 40% gap so Somalia can become self reliant without outside help.

 

[warside]

How about Puntland and other fulfilling its part by paying tax? If you don't follow the rules than why expect others to do so. Pay tax. You can't keep your wealth for yourself and expect Mogadishu to share its wealth with you. The IMF wants you and others to plug in that 40% gap so Somalia can become self reliant without outside help.

It is a two-way street, you can't demand taxes and not do your obligations, I gave you an example of the PL military and how last time HSM didn't want to include them in the SNA, so I'm pretty sure they're content with how things are, they want to focus on the south, but there were discussions before Farmaajo extension between the finance ministers on how to collect uniform taxes and support the states that don't have ports, the world bank suggested to put 20% of Mogadishu, Bosaso and Kismaayo ports' revenues in an account and share it between all parties.

 

[Dowlad]

It is a two-way street, you can't demand taxes and not do your obligations, I gave you an example of the PL military and how last time HSM didn't want to include them in the SNA, so I'm pretty sure they're content with how things are, they want to focus on the south, but there were discussions before Farmaajo extension between the finance ministers on how to collect uniform taxes and support the states that don't have ports, the world bank suggested to put 20% of Mogadishu, Bosaso and Kismaayo ports' revenues in an account and share it between all parties.

I agree it is a two-way street. First let us agree in how tax should be paid by all states. IMF suggestion is good but should go further to also include Dhusmareereb and Jowahr contribution. I know Galmudug can pay tax, we got money. For the moment it won't be as large as Puntland but we are happy to pay our share. After we all agree on paying tax can we agree on sharing the SFG budget revenue. The more a state pays, the greater its share in revenue will be.

 

[repo]

This is what I like to see, lets get some more.

 

[bidenkulaha]

This is what I like to see, lets get some more.

Did you see that last shot? that was epic

 

[NinWero]

I found the agreements between finance ministers of FGS and FMS in 2019 which the new minister want to abandon, and the meetings were arranged by the World Bank who encourages them to meet regularly under the banner "INTER-GOVERNMENTAL FISCAL FEDERALISM FORUM".
View attachment 236167

HSM should not give a cent to any FMS. Strangle them financially until they see their errors.

I am 100% sure that GM, HS, KG, and maybe even JL will struggle immensely, especially paying their workers if the FGS cuts them financially.

 

[Velœcity]

HSM should not give a cent to any FMS. Strangle them financially until they see their errors.

I am 100% sure that GM, HS, KG, and maybe even JL will struggle immensely, especially paying their workers if the FGS cuts them financially.

Galmudug, HS, and KG will suffer the most, that’s why I’m suprised they did a join coalition. Maybe they expected immediate reconcile attempts from HSM administration. Although Jubaland will have minimal suffering

 

[NinWero]

Galmudug, HS, and KG will suffer the most, that’s why I’m suprised they did a join coalition. Maybe they expected immediate reconcile attempts from HSM administration. Although Jubaland will have minimal suffering

Theirs more to this story, I think it could be less about HSM and more about the Ministry. I doubt they would risk a fight with FGS since most of them are in vulnerable situations.

I was thinking they doing it to pressure HSM to gain extensions but thinking about it now, I don't think that is the case.

 

[reer]

With the coming Famine declaration (expected announcement soon) I hope HSM can use the drought situation as a political weapon.