Abstract

This study investigated financial crimes in Somali public sector. It intended to explicitly assess public workers’ perception of financial crimes, as well as the primary causes and effects of financial crimes in Somali Public Sector. A descriptive research approach was used in this study, and a questionnaire was used to gather data from 160 participants. This research was guided by the Fraud Triangle Theory and Fraud Dimond Theory which describe pressure, opportunity, rationalization and capability as key factors for conducting financial crimes. Although these elements have a significant influence, the findings showed that opportunity mainly representing improper internal audit and control, poor governance and improper duty segregation is the most contributing element to financial crimes in Somali public sector. The findings also revealed that financial crimes disturb resource allocation, wealth distribution and socioeconomic development, resulting in poverty and loss of public trust in government institutions. The study concludes that the financial crimes in public sector of Somalia is alarming and is affecting the economy, quality of life, wellbeing, integrity and social progress. However, this study recommends that the Somali government should establish effective control mechanisms, apply appropriate budgetary strategies to ensure government financial soundness and establish/activate government anti-corruption bodies to combat any form of corruption and financial crimes. Furthermore, the government should develop strong legal frameworks to promote accountability and deter perpetrator. The research also recommends that the government implement e-government with the purpose of increasing transparency and public trust. Finally, the study recommends that international donors should help Somalia to develop strong public institutions by providing administrative and technical support, particular, public financial management system.

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