Somalia’s Auditor General Presses Favori LLC on Financial Transparency and Contract Compliance

MOGADISHU – The Auditor General of the Federal Government of Somalia, Ahmed Isse Gutale, accompanied by senior officials and advisers from his office, has held a meeting with Mustafa Durgut, the Somali representative of Favori LLC, to discuss the implementation of audit recommendations concerning the company’s management of revenue at Mogadishu’s Aden Adde International Airport.

The discussions focused on strengthening accountability, improving the company’s financial reporting, and ensuring that the audit recommendations were implemented within the designated timeframe.

The Office of the Auditor General has previously raised persistent concerns over revenue transparency in concession agreements, noting that neither Favori LLC nor Mogadishu Alport Corp. (Albayrak-Somalia) had submitted independently audited financial statements, making it impossible to confirm the government’s full share of revenues from airport and port operations.

The Auditor General has been unable to verify the accuracy of concession fees amounting to $34.26 million that was to be paid to the federal government by Favori and Albayrak, raising concerns regarding transparency and accountability in managing these critical infrastructures.

Auditor General Presses for Full Compliance with Profit-Sharing Agreement

During the meeting, particular emphasis was placed on the importance of Favori LLC fully implementing the revenue-sharing agreement it holds with the Somali government, specifically ensuring that independent auditors conduct annual reviews of the company’s financial statements.

The Office of the Auditor General has urged significantly enhanced oversight and the immediate simplification of administrative procedures regarding the management of government contracts, aiming to strengthen financial accountability and operational transparency across all public institutions.

Favori LLC’s Role at Aden Adde International Airport

Favori LLC is a Turkish company that has been managing operations at Mogadishu’s Aden Adde International Airport since 2013, handling services including security, operations, and maintenance. The company claims to be the sole entity authorized to collect navigation fees at the airport, a position that has at times led to disputes regarding fee collection and service management.

Favori LLC recently entered into a partnership with SKYWAY, a Somali-owned company, to manage cleaning services at the airport, reflecting a move to empower local businesses in strategic national facilities.

Commitment to Cooperation and Transparency

Mustafa Durgut affirmed Favori LLC’s commitment to continuing cooperation with the Office of the Auditor General to ensure the full implementation of the audit recommendations and to ensure that the company’s financial reporting is transparent and accessible.

Way Forward

The meeting underscores the federal government’s ongoing efforts to strengthen financial oversight and ensure accountability in public-private partnerships. As Somalia continues to deepen reforms in public financial management, the implementation of audit recommendations will be closely watched by parliament, civil society, and international donors as a test of the government’s commitment to transparency and good governance.