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Terms Of Reference (ToR) For A Legal Expert To Review And Develop Proposed Amendments To The Central Bank Of Somalia Act, 2012

Job Expired

bankiga dhexe ee soomaaliya

البنك المركزي الصومالي

central bank of somalia

REVIEW OF THE CENTRAL BANK OF SOMALIA ACT, 2012

TERMS OF REFERENCE (TOR)

FOR A LEGAL EXPERT TO REVIEW AND DEVELOP PROPOSED AMENDMENTS TO THE CENTRAL BANK OF SOMALIA ACT, 2012

  1. BACKGROUND

Somalia is undertaking major reforms in various sectors with a vision to spur the country’s economic development. Major strides have been made in this regard, including establishing relevant institutions such as the Central Bank of Somalia (CBS), and other key Government agencies and units with the mandate to spearhead national reforms and enact appropriate laws to support the targeted reforms. Despite these milestones, a lot still needs to be done.

Somalia financial sector has been targeted for these reforms, given the pivotal role that the sector plays in developing the economy.

The CBS is established under the Central Bank of Somalia Act, No 130 0f 2012. This law was enacted in 2012. This statute bestows on the CBS heavy responsibilities or functions, which include to:

  1. a) Formulate, implement and be responsible for monetary policy and implement the foreign exchange policy.
  2. b) Hold and manage the foreign exchange reserves of Somalia.
  3. c) License, regulate, and supervise all banks and financial institutions to foster the liquidity, solvency, and proper functioning of a stable financial system.
  4. d) Formulate and implement such policies to best promote the establishment, regulation, and supervision of efficient and effective payment, clearing, and settlement systems.
  5. e) Administer payment, clearing, and settlement systems.
  6. f) Act as banker and adviser to, and as fiscal agent for the Government and public entities.
  7. g) Act as the sole issuer of legal tender Somali currency notes and coins; and
  8. h) Compile, analyze, and publish the monetary, financial balance of payments and other statistics covering various sectors of the national economy.

 

  1. OBJECTIVES OF THIS ASSIGNMENT

The CBS Act was enacted in 2012 principally to provide the much-needed legal framework to the Central Bank of Somalia, which would then initiate the process of reforming the financial sector. It is almost a decade since this law was enacted. Central Banking functions have evolved overtime worldwide. Equally, the structure of central banks has evolved, with more emphasis being placed on governance as a cornerstone to a well-functioning central bank. Issues such as organizational structure, appointments of key senior personnel and their duties, oversight roles, independence/autonomy, financial strength, accountability, transparency, and capital, amongst others, are fundamental to a central bank.

The review of the CBS Act and enactment of the proposed amendments to the CBS Act are expected to lead to:

  • Enhance the governance framework of the CBS in a way that instills the confidence of stakeholders, including its licensees, peer Central Banks in the region and beyond, the Government, financial service providers, development partners and members of the public.
  • Protect the operational independence and autonomy of the Bank and to ring-fence it from any political interference.
  • Improve the financial capacity of the CBS by entrenching a capitalization framework for the Bank that will ensure that over the years the CBS is well and sufficiently capitalized.
  • A more accountable CBS not only to its immediate stakeholders but also to the public at large.
  • A more transparent CBS whose activities and operations are clearly understood by its stakeholders and members of the public.
  • Enhanced service delivery by the CBS.
  • Enhanced oversight and supervisory powers of the CBS.
  • Enhanced capacity to discharge all the statutory functions bestowed in the Bank.
  1. SCOPE OF ACTIVITIES

The CBS is seeking the services of an individual Legal Expert to review the CBS Act and propose amendments to the Act to address the weaknesses to be identified in the law and to incorporate new things which are presently not in this law.

The Legal Expert will provide legal diagnostics and analysis and will also provide drafting services on the proposed amendments to the CBS law. The Legal Expert will be procured directly by the CBS.

The Legal Expert is expected to carry out the following activities:

  1. Undertake a comprehensive legal review of the CBS Act to identify deficiencies, restrictions, omissions, and any onerous provisions which need to be deleted or amended. Issues which should be considered include corporate governance, independence of the board of directors, scope of the functions of the CBS, capitalization of the bank (authorized capital of CBS), power of the Government over the CBS (directives by the Government to the CBS), authority and functions of the board audit committee, disclosure of information, reporting, amongst others.
  2. Identify new issues based on requirements of CBS and/or other stakeholders which ought to be included in the amended CBS Act.
  • Prepare an Issues Paper highlighting key issues identified in the CBS Act which ought to be addressed.
  1. Develop proposed amendments to the CBS Act to address the issues identified.
  2. Prepare recommendations, explanatory Notes explaining the rationale for the proposed amendments.
  3. Prepare a final report covering the activities undertaken in this assignment.

 

  1. APPROACH TO THE ASSIGNMENT

This assignment has been initiated by the CBS. The CBS will be wholly responsible for its execution. The CBS will therefore provide the Legal Expert with any information he or she may need. The report of the assignment will be submitted directly to the CBS. To enable easy flow of information and communication between the CBS and the Legal Expert, the Legal Expert will be at liberty to contact the CBS through phone, e-mail, and virtual meetings to seek for any information and to share any useful information with the CBS. Similarly, the CBS will be at liberty to use same channels to liaise with the Legal Expert. The CBS shall nominate a team leader as the contact person or liaison person who shall liaise from time to time with the Legal Expert.

  1. INDICATIVE TIMING FOR KEY DELIVERABLES AND MILESTONES

Performing the above-mentioned activities, the Legal Expert will be responsible for delivering the following outputs, comprising the key milestones.

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This schedule of activities may be altered as between the CBS and the Legal Expert as circumstances may render necessary.

If due to unforeseen/unavoidable circumstances/eventualities or due to the scope of work, it is necessary to extend time, the Legal Expert shall be granted more time to complete the exercise as may be requested after mutual agreement with CBS. The Legal Expert is also at liberty to complete the work earlier than schedule if this is possible.

All deliverables should be agreed with the CBS as needed and be provided in English/Somali and in electronic copy.

Skills and Qualifications

The Legal Expert must have the following experience and skills:

  1. Minimum ten years of work experience in commercial and corporate laws.
  2. Familiarity with Central Banking laws, particularly in any country in the Eastern African region.
  • Familiarity with the overall commercial, corporate, and financial market legal framework,
  1. Familiarity with functions of a Central Bank in a dynamic society.
  2. Experience in reviewing laws in the financial sector.
  3. Past experience in reviewing any financial sector law or developing new financial sector laws or regulations for Somalia.
  • Familiarity or experience in legal drafting and legal analysis in fragile or post conflict countries will be an added advantage.
  • Experience in delivering similar work, and able to crowd in international best practice.
  1. Good communication, negotiation, and writing skills.
  2. Self-reliant, able to work without supervision, highly motivated, organized, and demonstrating sound professional judgment; and
  3. Excellent English language skills.
  4. TIMING AND DURATION

The assignment is envisaged to start in…………… The assignment will have a duration of 2 calendar weeks and will tentatively end on………….. This deadline is subject to such changes as circumstances may render necessary.

How to apply

The Central Bank of Somalia (CBS) now invites eligible Individual Legal Experts to apply in providing the above-mentioned services. Interested legal experts must provide information indicating that they are qualified to perform the Services. The following conditions are to be aligned with each legal expert’s application such as technical, financial proposal, track record and official support documents including CV and at least 2 samples of previous work similar to the assignment (links can be shared as well).

Applications should be submitted through email written below on or before January 28th, 2023, at 16:00 hours (Mogadishu Time) – Please indicate the title CBS ACT REVIEW” in the subject line.

Attention:         CBS Procurement

Mogadishu

Somalia

Email: procurement@centralbank.gov.so.

CENTRAL BANK OF SOMALIA

OfficeMogadishu
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