{"id":8755,"date":"2022-01-28T08:15:55","date_gmt":"2022-01-28T08:15:55","guid":{"rendered":"https:\/\/www.africa-press.net\/south-sudan\/all-news\/why-graft-rating-must-alarm-s-sudan"},"modified":"2022-01-28T08:28:32","modified_gmt":"2022-01-28T08:28:32","slug":"why-graft-rating-must-alarm-s-sudan","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-sudan\/all-news\/why-graft-rating-must-alarm-s-sudan","title":{"rendered":"Why graft rating must alarm S. Sudan"},"content":{"rendered":"

Africa-Press – South-Sudan. <\/strong><\/span>The report published by Transparency International that places South Sudan among the most corrupt countries in the world has raised concerns about the dire implications for donors\u2019 relationship with the country.<\/p>\n

South Sudan was ranked with eleven points at the bottom of the table. The countries that scored lower were branded as having violated civil rights and thus lacked democracy.<\/p>\n

The economic advisor in the office of the first vice president for the economic cluster has warned that South Sudan\u2019s latest ranking among the most corrupt countries in the world could have grave implications on donor confidence.<\/p>\n

Dr Abraham Maliet Mamer, the economic advisor in the office of Vice President for Economic Cluster James Wani Igga, said the report had a grave injury to the country\u2019s reputation because investors might shy away.<\/p>\n

He stressed that South Sudan was not so bad to be among the most corrupt countries, citing the trust bestowed on it by the World Bank in funding projects.<\/p>\n

Dr Maliet trashed the report from Transparency International (TI), saying that it had many wrong points. He blamed the TI for just picking the report from nowhere instead of consulting the leaders of the country.<\/p>\n

Not so bad as is said<\/b><\/p>\n

He averred: \u201cThe World Bank has been funding our projects. If we were so bad in terms of corruption, they would not have supported us. They reported what interested them, not the truth,\u201d he said.<\/p>\n

However, he maintained that there might be other investors that like investing in a corrupt country who might still be attracted to the country following the controversial report.<\/p>\n

\u201cBeing reported as a corrupt country is not good. First, investors will not have the trust to invest in the country. But it might also have a positive side because sometimes investors will invest in a corrupt country to take advantage of it. For example, our country currently does not have a proper taxation policy.\u201d<\/p>\n

Maliet reiterated that it was time for the country to prioritise transparency by publishing its financial reports so as to restore its image. He added that the country must enact the budget bill and pass the budget as another step towards restoring its image.<\/p>\n

\u201cThe country should now not hesitate to publish financial reports, because we cannot work without publishing our financial reports. This is the only way these reports will end. If Transparency International was reporting about a published report, we would not have complained,\u201d Dr Maliet said.<\/p>\n

\u201cAnother thing the government should do is to make sure that the budget is passed because the country cannot move forward without an approved budget. The budget bill must be passed so that the country can have a financial law.\u201d<\/p>\n

Addressing journalists at a round table discussion in Juba yesterday, World Bank Regional Director, Ousmane Dione, waded into the matter, saying that the low corruption index worries the lender. Mr Dione said corruption will always be present in every society, but it is prudent to roll out mitigation measures.<\/p>\n

\u2018\u2018What is important is what is being done to address it. It is not only about enforcement but also education [matters]; raising awareness of which the media is part of,\u2019\u2019 he said.<\/p>\n

But for Dione, the World Bank will inject $36 million into the programs to protect flood victims and internally displaced persons given that there is a high level of confidence in the government\u2019s commitment to transparency.<\/p>\n

In December 2021, research by the International Peace Information Service and the Danish Institute for International Studies revealed that the government control the majority of roadblocks while SPLM\/A-IO controlled a third of the checkpoints along the River Nile.<\/p>\n

The research revealed that transportation in South Sudan was among the most expensive ventures in the world and that it is only rivalled by Afghanistan and the Democratic Republic of Congo.<\/p>\n

It indicated that based on the averages, a typical checkpoint in the country is manned by six people who charge an average of SSP 48,000 (USD 100). However, as vehicles typically travel long distances, the total checkpoint tax for a trip can be enormous.<\/p>\n

\u201cBarges typically shuttle between Bor and Renk carrying humanitarian aid or foodstuffs, and for the entire return journey, each barge will pay about $211 at each of the 33 checkpoints, totalling a stunning USD 10,000 for a round trip,\u201d it partly states.<\/p>\n

The report states that checkpoints on the road between Juba and Bentiu on average charge a truck about $21, but the total journey involves passing through 80 checkpoints. This translates into an enormous amount of money incurred on a return journey: about USD 3,000 in checkpoint taxes.<\/p>\n

\u201cWe found that these subcontractors are systematically taxed at 157 per cent, or 49 per cent, of all South Sudanese checkpoints. This means that scarce aid money is appropriated by South Sudan\u2019s soldiers and rebels, ending up in the pockets of military elites, \u201cthe report argues.<\/p>\n

Prior to this revelation, on September 9, 2021, the South Sudan customs service had ordered the removal of all illegal checkpoints along the Juba-Nimule and Bahr el Ghazal highways after a two-week protest by the East African truck drivers.<\/p>\n

\u201cOver the past two years, we have mapped 319 checkpoints along major trade routes in South Sudan, of which 253 (79%) are roadblocks and 66 (21%) river checkpoints.\u201d<\/p>\n

Reports<\/b><\/p>\n

On November 17, 2021, The Sentry released a report, accusing Kenya of having a weak financial system by opening a floodgate for money laundering by corrupt officials from South Sudan.<\/p>\n

\u201cKenya is a destination country for illicit South Sudanese funds, which have been moved into Kenya using Kenyan corporate structures, luxury properties, and banks. Arms have also transited through Kenya into South Sudan,\u201d read the report.<\/p>\n

The Sentry\u2019s investigation alleged that several corrupt officials in South Sudan kept their assets in Kenya through corporate structures, luxury properties, and banks. It alleged that it had obtained a document that indicated millions of dollars in payments linked to top South Sudanese officials were transacted through Kenyan banks.<\/p>\n

It further stated: \u201cThe Sentry has identified numerous cases in which South Sudanese PEPs have purchased luxury real estate in Kenya for themselves or their families. This could indicate that the sources of wealth and funds are not being reviewed as part of due diligence checks by the Kenyan real estate sector.\u201d<\/p>\n

The report also revealed that some Kenyan corporate structures benefited from the $922 million South Sudanese letters of credit scandal, in which oil-backed loans were used to secure financing and import food and goods from neighbouring countries.<\/p>\n

\u201cThese corporate structures, which were owned by South Sudanese senior officials, members of their families, or well-connected traders, failed to provide the goods following payment, contributing to widespread severe hunger and famine in South Sudan,\u201d it stated.<\/p>\n

But the Minister for Information, Michael Makuei, rubbished the report, saying it was unsubstantiated and a biased document engineered to tarnish the names of South Sudanese leaders.<\/p>\n

\u201cSentry Group is a group that was working with us and when we fell [out] with them, they turned against us and they started writing all sorts of nonsense about us, which cannot in any way be proven to be right,\u2019\u2019 he said.<\/p>\n

\u201cThey avoid us, then they go and write outside. These reports are unfounded and biased because some of these writers have been with us for some time. We were working with them and we know the reason why we fell out,\u201d he added last year.<\/p>\n

Nonetheless, Makuei urged the Sentry to share any reports about South Sudan with the government before publishing them so that the government can investigate the officials involved in corruption.<\/p>\n

\u201cThere are people who are there and they are writing their reports that are not substantiated.\u201d And, they write them to those who pay them. If there is any problem at all, they should have been copying us so that we know and investigate, \u201che urged.<\/p>\n

President wants action<\/b><\/p>\n

In the same month, President Salva Kiir outlined various directives for the newly sworn-in minister of finance, Agak Achuil Lual.<\/p>\n

Kiir warned Mr Lual not to follow in the footsteps of his predecessors, whom he said had dipped their hands in public funds and siphoned the money to foreign bank accounts.<\/p>\n

Kiir also directed Lual to ensure that civil servants are paid on time and that there should be transparency in the Ministry.<\/p>\n

According to the Conference Room Paper, which was presented to the Human Rights Council in Geneva, in September 2021, the UN Commission on Human Rights reported that public coffers and resources leaked into the pockets of government officials.<\/p>\n

The commission\u2019s two-year investigation highlighted that over $73 million had been diverted to individuals\u2019 bank accounts since 2018, with transactions worth approximately $ 39 million in less than two months, a fraction of the amount of $ 4 billion. President Kiir said some elites had diverted public funds since 2012.<\/p>\n

The commission mentioned such embezzlement as a major setback, leading to poor economic, social, and cultural rights for citizens and jeopardising peace.<\/p>\n

The leaking channels of money flow included the informal system of oil revenue collection, non-transparent processes for contract payments, procurements, and revenue, which were said to be operated in a bid to divert non-oil revenues.<\/p>\n

Hands tight<\/b><\/p>\n

The Presidential Press Secretary, Ateny Wek Ateny, said the government would not be able to prosecute corrupt individuals, categorically stating that no evidence had been adduced against the unnamed individuals to warrant a successful legal prosecution.<\/p>\n

Ateny stated that the president was attempting to discourage some employees from taking a ten per cent stake in the central bank.<\/p>\n

Last year, the International Monetary Fund (IMF) Director of the African Department, Abebe Aemro Selassie, called for accountability and transparency in all spheres of government services.<\/p>\n

Abebe boasted that the support from the IMF had helped in the unification of the foreign exchange market initiative.<\/p>\n

For More News And Analysis About South-Sudan<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Sudan. The report published by Transparency International that places South Sudan among the most corrupt countries in the world has raised concerns about the dire implications for donors\u2019 relationship with the country. South Sudan was ranked with eleven points at the bottom of the table. The countries that scored lower were branded as […]<\/p>\n","protected":false},"author":84,"featured_media":8754,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6],"tags":[234,265,233],"class_list":["post-8755","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","tag-africa-press","tag-africa-press-south-sudan","tag-south-sudan"],"yoast_head":"\nWhy graft rating must alarm S. 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