President Farmaajo signs into law Company and Public Finance Management bill

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President Mohamed Farmaajo has today signed into law the Companies Act and Public Finance Management Act noting the two legislations would be vital in setting the framework for economic reforms and bolstering the war against corruption in Somalia.

The President said in a statement the Company law in particular would be instrumental in promoting trade, job creation and investment opportunities in the country while also protecting the rights of citizens.

The passage of the two laws demonstrate “Somali government’s efforts ‘over the last few years to solve the challenges faced by Somali businesses and ensure the credibility of international investors”, said statement from the government.

The two sets of laws were passed Wednesday by the Lower House of the Federal Parliament.

The Public Finance Management Act is crucial in management of resources in public institution by instilling best practices and holding accountable those tasked with management of public resources.

The Act will also be significant in taming corruption in public institutions as Somalia seeks to shed off the ‘most corrupt’ tag attested by subsequent Transparency International indices.

The passage of the Company Law Bill will also be instrumental in establishing the legal framework under which companies are established, run and even dissolved in Somalia.

It also provides the regulatory framework for licensing and management of both public and private companies in the country.

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