"Underlying corruption as a system of governance has not yet fundamentally changed and, in some cases, arguably has worsened," the new report by the UN Monitoring Group on Somalia and Eritrea read.
"The indications are that diverted funds are used for partisan agendas that constitute threats to peace and security," said the 482-page confidential report, which was provided by a UN source.
Meanwhile the Al-Qaeda-affiliated Shebab have shifted tactics in the face of sustained military assaults by the 22,000-strong African Union force and repeated air strikes, including last month's assassination of insurgent commander Ahmed Abdi Godane.
At home, the Shehab have increased their use of bombs including the "noticable" introduction of magnetic vehicle bombs, a tactic previously more commonly used in Afghanistan and Iraq, and which "may represent a transfer of battlefield knowledge to Somalia."
