CORRUPTION REPORT  
Forensic Audit Report: Systemic Financial Misconduct and Fraud in the House of the People

Published by MP Dr. Abdillahi Hashi Abib

As a Member of Parliament committed to fiscal oversight and institutional integrity, I have conducted a forensic audit leveraging data mining, financial analysis, and forensic accounting methodologies. This audit draws directly from the Central Bank of Somalia’s General Ledger, which records all governmental financial transactions, including those of Parliament, the Executive Branch, and the Judiciary.

A five-month transactional analysis of expenditures authorized by the Speaker of the House of the People, the Permanent Secretary, and the WHIP reveals a pattern of systemic financial misconduct, fraud, and misappropriation. The evidence suggests a well-orchestrated scheme involving fraudulent invoicing, fictitious expenditures, inflated procurement, and unauthorized cash withdrawals, all aimed at diverting public funds for personal and political gains.

Key Forensic Findings: Pattern of Financial Malfeasance
1. Fictitious Welfare Disbursements ($185,800)
o $185,800 was allocated under the category of welfare and services for MPs within five months. However, a direct inquiry among MPs found no beneficiaries of such funds.
o The absence of beneficiary records, approval documentation, and disbursement receipts suggests a ghost disbursement scheme, wherein funds were funneled elsewhere under the pretense of parliamentary welfare.

2. Systematic Over-invoicing and Procurement Fraud in Catering ($833,396.91)
o Catering expenses over five months exceeded $833,396.91, with payments allocated to the same three vendors (Mogadishu Guest House, DEH, and Guest House Restaurant).
o The forensic review identifies a lack of competitive bidding, raising questions about procurement compliance and price benchmarking.
o Statistical analysis of invoice patterns reveals identical daily charges, contradicting natural fluctuations in catering services.
Key Red Flags:
o Excessive spending: The volume of food allegedly procured vastly exceeds reasonable estimates for MPs and parliamentary staff.
o Single-source contracting: The same vendors received exclusive payments, violating procurement best practices.
o Invoice duplication: Some invoices display repetitive amounts, suggesting cloned or inflated billings.

3. Fraudulent Housing Expenditures ($274,219)
o Over $274,219 was expended for rental accommodations despite the Speaker residing in a private villa.
o No lease agreements, rental contracts, or beneficiary records exist to justify these payments.
o The disbursements suggest a shell rental scheme, where funds were either funneled to undisclosed beneficiaries or siphoned off through fictitious landlords.

4. Contradictory and Unsubstantiated Travel Expenditures ($366,573.53)
o A forensic reconciliation of flight ticketing ($137,183.53) and travel expenses ($229,390) within the same five-month period shows significant anomalies:
o Overlapping expenses: Travel expenses were duplicated under multiple expenditure codes, inflating costs artificially.
o Cash-based disbursement: All funds were withdrawn in cash, without boarding passes, ticket receipts, or travel itineraries to validate legitimate expenditure.
o Absence of accountability: No records exist to confirm which MPs or officials benefited from these expenditures.

5. Fuel Procurement Fraud: Collusion with Suppliers ($347,020.12)
o Over $347,020.12 was spent on fuel within five months, despite the Speaker’s office operating a small fleet of fewer than 10 vehicles, most of which remain unused.
o Forensic tracing of fuel purchase orders indicates collusion with HAAS and Lukman Petroleum, where fictitious fuel deliveries were billed to Parliament.

Red Flags:

o Fuel expenses do not correlate with actual fleet usage data.
o Invoices lack metered consumption logs or GPS vehicle tracking to verify fuel consumption.
o HAAS and Lukman Petroleum received consistent, rounded invoice amounts, indicative of pre-arranged fraudulent transactions.

6. Procurement Fraud: Furniture & Equipment ($536,965.33)
o When the Speaker assumed office, Parliament was fully furnished. Despite this, two questionable expenditures emerged:

o New furniture procurement: $362,690.28
o Additional office equipment (Farook): $174,275.05
o No inventory records, purchase orders, or asset registration logs substantiate these transactions.
o The absence of physical audits suggests a fraudulent asset procurement scheme, where funds were embezzled through ghost purchases or over-invoiced supplier contracts.

7. Misappropriation of Miscellaneous Budget Items
o Water expenses: $55,000 (excessive for standard office consumption).
o Chartered flight for First Deputy Speaker: $62,080 (lack of competitive bidding).
o Internet services: $38,800 ($7,760 per month—significantly above market rates).
o Decorations vs. Repairs: $188,958.91 spent on “decorations” and $277,810 on “repairs,” yet Parliament remains in visible disrepair with deteriorating infrastructure.
o Unaccounted cash withdrawal by Permanent Secretary Abdirahman Mohamed Abdulle (Jaabir): $1,458.88 without justification.

Total Misappropriated Funds: $3,564,229.96

This forensic audit confirms that the Speaker, the Permanent Secretary, and the WHIP engaged in a coordinated scheme to embezzle over $3.5 million in just five months through fictitious contracts, fraudulent procurement, duplicate expenditures, and cash diversions.

The findings demonstrate a systematic breakdown of financial governance, internal controls, and oversight mechanisms within Parliament. This level of embezzlement and fiscal mismanagement cannot be ignored.

Why has no internal or external audit flagged these anomalies? Why has the Speaker continued to authorize unchecked cash withdrawals and fraudulent contracts? Why are MPs denied welfare support while Parliament’s budget is siphoned into personal accounts?

The Speaker and his enablers have transformed Parliament into a personal enrichment vehicle, using public funds to buy votes, suppress investigations, and consolidate power.
1. Independent External Audit: An immediate, internationally supervised forensic audit must be commissioned.
2. Asset Tracing and Recovery: Freezing and reclaiming illicitly acquired assets through financial intelligence mechanisms.
3. Criminal Prosecution: Legal action against the Speaker, the Permanent Secretary, and all co-conspirators.
4. Legislative Oversight Reforms: Strengthening parliamentary budgetary controls, procurement transparency, and cash disbursement restrictions.

The time for silence is over. We must reclaim the integrity of our institution and end this cycle of corruption before the Somali people lose all trust in their elected representatives.

Dr. Abdillahi Hashi Abib – BA, MA, MASc, Ph.D.
Member of Foreign Affairs Committee
Federal Republic of Somalia, the House of People
Mogadishu, Somalia
MP – HOP #201 Awdal Region and Gebileh District
Leader of the Accountability and Transparency Caucus of the House of People
E: abdillahi.abib@parliament.gov.so
W: + 1-571-436-7586 M: + 252-6108-22469