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South Sudan Nile Commercial Bank out of cash: official

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By Isaac Vuni

April 23, 2009 (JUBA) — Southern Sudan based Nile Commercial Bank (NCB) has run out of cash to meet its obligations, the clearest sign to date of the deepening financial crisis facing the semi-autonomous region.

The cash strapped bank has been unable to honor withdrawal requests from its clients who have deposited their own salaries. The bank has advised impacted customers to wait indefinitely.

Bank officials have pointed fingers at some officials at the Government of Southern Sudan (GoSS) saying they are to blame.

The Assembly branch manger in Juba, Marta Michya alleged that some senior GoSS officials borrowed “huge amount of money but failed to repay”.

“Hence we told our clients to wait until the borrowed money is paid back” she said.

The NCB official added that some of the money has been loaned out to some of these officials without proper collateral.

South Sudan has suffered along with the North of the sharp decline in oil exports which accounts for 93% of its 2009 budget.

GoSS has implemented strict fiscal measures to control spending as part of the efforts to weather the economic crisis.

Government officials, World Bank and Joint Donor Team representatives described the financial situation in Southern Sudan as “serious.”

Last month the Governor of the Bank of Southern Sudan (BoSS), Elijah Malok warned that NCB already in financial crisis and on the verge of total collapse.

He also cautioned that the few other private banks in Southern Sudan may soon follow suit.

The Assembly branch manager said that opening bank accounts with them is a stipulation for employees to get their monthly paychecks cashed.

A bank’s client who declined to be identified told Sudan Tribune that today “even if one wants to withdraw 100 Sudanese pounds, the bank tellers kept on delaying it for more than one month now.

The client was denied a withdrawal of 800 Sudanese pounds.

The NCB website says that the bank was established in 2003 and has 20 branches in Southern Sudan and offices in Northern Sudan, Kenya and Uganda.

The non existence of basic infrastructure in South Sudan and the lack of banking knowledge among the population constitute great challenge to the banking sector.

There were recent reports that the commissioner of Western Equatoria fled to Kenya with $1 million to Kenya during Easter holidays; speaker of Eastern Equatoria was accused of stealing 36 millions dollars.

It was also alleged that $240 million were found in Benjij Hotel Juba when the hotel caught fire and that millions of dollars were caught being smuggled out of south in a coffin.

However there were no independent confirmations of these reports.

(ST)

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Kind regards,

The Sudan Tribune editorial team.
  • 24 April 2009 06:44, by Ayuen Buol mum

    The CEO of the Bank is to be blame because there are regulations that govern the lending to the individual and lenders. the rule of the Bank is to reserve a sum of money for depositors who put money in the bank. And people that lend money must have money in the bank to make sure if the lender fail to repaid back then his/her money will replace the laon.

    they need a regorious financial regulations to make bank as a commercail to the public as will as the GOSS need some action to control those private banks.

    Student from university of Illinois.

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    • 24 April 2009 07:02, by Nile

      Salva Kiir kin’ men stole all the money by wirring them on foreign banks and now complained that the Bank is out of cash. are you kidding me! this is what you deserve. next time Salva don’t go to Church and complain that Jellaba didn’t give you your our Oil share.

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      • 25 April 2009 05:17, by Joseph lago

        Hello brainless Nile, this failture is not about Kiir, it is about CEO and the management of commercial Bank fail who to protect the customers. anyone wanting to borrow money, must meet lending criteria, which mean you must have continue availability of cash flow, good credit records, have ongoing employment, proper and good persond etc. and if the CEO fail to discover that, then we all blame CEO failure not to foretold unforeseable risks, lack of Knowledge and proper skills needed for the job, fail to protect the interest of the public at large.

        finally Management or CEO must be held accountable for failture of the bank because they breach a duty to protect the interest of the bank and its customers, by employing unskilled and people without sufficient qualification in the areas they work. and i doubt there must be some conflict of interest played by management team which lead to bank failture.

        hope you would understand.

        thanks

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    • 24 April 2009 07:04, by WARLORD

      ok, there we go now , where are those guys who always put blame on dinka say we people stealing money where is dis eastern quatoria come fro is he dinka? look at dis donkey wit dis large a mount of cash , who think abt him himslf , shame on him

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      • 24 April 2009 10:12, by dieng

        Refering to one of our felow speaker who hide facts on wrong doer especially dinka about nile B out of cash’
        He fingure point at one of eastern EQ’ian on the loot amount of Dollars.
        I am very sorry about that, that person is still young and not knowing what is taking place in S. sudan at large.
        I remember telling you that dinka are the most popullar urangutang in sudan, not a blame but the fuct.please my friend don’t blame one of the eastern equatorian of such kind of looting but say this sould be one of my fella who are desplace and has a rang in E. EQ. S.
        Thanks Brother!!!!!!!!!!.
        REPLY IS WELCOME.

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    • 24 April 2009 18:42, by Wiyual Wech Puk D. Payol.

      Oh!! my blame is to Nile bank manager,what do you mean by not repaying the loans they took[those of GOSS]? you are the one who create the bad debt expense to the bank.are you really a professional manager? if yes,please revise how you learn either accounting or economics.if no, the bank as a financial institution is liable to pay the customers those you misused their bank notes and is accountable for being employed unskilled manager like you.
      thanks
      you should reach me by wechdepayol@yahoo.com

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    • 25 April 2009 04:33, by Joseph lago

      that is absolutely very horrified situation, there has to be a seperation between banks and GOSS Government or government’s officals. any government offical who want to borrow money from the bank must meet the lending criteria otherwise must be decline if there are insufficent prove of continues cash availability, good credit records or whether he/she is good and proper person.

      bank keeps public funds not for officals of the government, if the offical do not have good credit records, lack continues flow of income, why giving him/her public money?

      i must say the CEO and the management team of the commercial Bank of southern sudan should be held accountable for misappropriations of public funds leading to Bank failture to have enough cash for customers.

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  • 24 April 2009 12:50, by Akol Kiir

    This is a huge embarrassment for us Southerners, now we’ve shown the Northerners that we can’t rule our selves. I am voting for Unity!!!!!!!!!

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    • 24 April 2009 13:54, by babadit

      You son a jalaba do not spoil this site by telling us that you will vote for unity, uniting with who ? your father Bashir? i am taking this special chance to warn you not to repeat again.
      i know very well your forefather was bought by the Arabs and he died in slavary.
      be carefull.

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    • 26 April 2009 12:09, by jmnda me

      DEAR Akol Kiir: you don’t have to Carry about how we called you...you know who you are.also I am sorry for the killing of your brother in 1993 i hop he didn’t lost his key.did he? if he lost his key! i don’t think you need to feel sorry for SPLA.but only feel sorry for your brother hem self for mist handling his mjhdin/geanna key.or the person who gave hem a key.just for your information the SPLM/SPLA had never ever fussed any one to join the army.you must be out of your mined to saggiest otherwise.you must be stupid if you thought we are going to believe you.by the way. why they didn’t killed you.when you didn’t want to join the army?what about three million Sudanese who were killed be the northern Sudan army?have you felt sorry for the regime’ who commit a genoci aganist the southern/nuba/blue nill/ and now in darfur?you can call your self lam akoul or kir myar.it is not going to help.the change of name Alon is not enough.you need a change in your mentality./idelogculy.. attention.southern/new Sudan most of this language if not all.is used by our enemy just to Davidde us.another words they used southern names to manipulate our discussion.that is why i always advise you brothers.to be very careful when responding to sch an tribalism attack.because our enemy can used some of our tribes name. to lounge an attack against another tribe.so that we can just keep attacking one another.my southern Sudanese brothers.let’s stop demonizing our self.you all know that we need one another.

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  • 24 April 2009 13:40, by Manga Bernard Manga

    There we are’’ Now we need to learn from this lession. Always when we have glton heart, we will alway face problem.

    I think money is new to south Sudan that is why some of us take it as there personal thing. Goss officials should not also take NCB as there Bank of Southern Sudan of which people take money witouht accountability.

    A coffin is not made for money but dead body. Shame on those use coffin for money, that is not a good heart for dvelopement but robbery heart.

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  • 24 April 2009 16:28, by Justin Chicago opiny

    Fire the Boss of NCB and question the Boss of BOSS this is a cryistal clear thing that we can not deliver. How can BOSS and NCB fail us like this. Plz, hire only people who can,and leave those who can not. Goss is driving us nut with people who believe only in becoming rich over night with public money. Money in Coffin,Hotels and so on where are the right people for the right job at the right time.

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    • 24 April 2009 17:05, by Alier

      These are two differ banks, people. It has nothing to do with failure of Bank of South Sudan. I suspected those private bank managers have stolen people money and blame the government. Why did they loan their clients money to people who would not pay them back? Why didn’t the reserve clients money? This smell like a big fraudulent scheme and Government of South Sudan must protect people rights.

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      • 24 April 2009 20:09, by Rodolfo Riak

        Hello mr. ALier

        This is the financial issue. Those who have financial background are the ones who can comment correctly about this case. Central bank in the language of economies is called the bank of banks. And that mean central bank has a control over commercial banks. central bank of south sudan is to be blame for her failiure to supervise these small banks under it. I am an accountant and I know what Iam talking about. sorry for any inconvienience this article may cause to you.

        Again to be honest, mr. Malok mentioned it clearly that some senior officials contributed in this failiure and I agreed with him. Because I know what that mean to him. Many officials are against legal channels in south sudan.So Malok can not be blame alone on that behaviours. The only way out is for all southerners to check their behaviours before they blame any leaders.

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        • 25 April 2009 04:58, by Joseph lago

          You Know what? anyone employed by Bank must understand the policy of bank. it doesn’t matter whether you are who or what and you want to borrow money, you must undergo lending principles. you don’t have to figerpointed at GOSS officals, it is the role of Bank management team and CEO to make sure that the money they are giving away must be confidentially paid back and the individuals they are lending money must meet lending criteria. the management team had a fiduciary duty to act in the best interest of the Bank and its customers.

          unless if commercial Bank is not a seperate entity and is controlled by GOSS officals,this is when you can say so. otherwise the whole failure will be counted on the CEO and mangement team for their failture to protect customers because they should have proper skills and Knowledgable in the areas the work.

          thank

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        • 25 April 2009 18:20, by Theresa Angua

          To Mr. Alier and Rodolfo Riak,
          I had resisted replying to both of you for a long time. But the twisted logic that you continue to impart on gullible readers on this website cannot go on unchallenged. Regarding the financial mess that this dysfunctional governement(GOSS) has led us into, I would like anyone who doesn’t think Elijah Malok and his sleazy cohorts are to blame to answer the following questions:
          1. Why did the Central Bank fail before the commercial banks if this poor (or lack of) financial regulation is not a top-down problem?
          2. How can any government official come and cash any sum of money with no procedures/vetting carried out? If they were representatives of their respective ministries, why were proper documents regarding the approval of such withdrawals not verified?. When, in our history, have government accounts become individual piggy banks?
          3. Where there any collateral pledged during those borrowing sprees? Apparently not, judging by Mr. Malok’s impotence in the face of the current crisis.
          4. Did those "officials" understand what reserve ratio means and what purpose it serves?
          5.Mr. Malok knows all the individuals, their names, how much they borrowed(actually stole),when, etc; so why isn’t he admitting that?
          6.The people who looted those banks have no permanent addresses; so how is he going to recover all the loot?
          7. Is there any agreement with neighboring countries(and beyond) to have those hoards repatriated back to S.Sudan?
          8. Is there any procedure to seize assets acquired illegally, liquidate them, and have the money given back to the people?
          9. Is there any contingency plan to compensate all those who have lost money in this wicked scheme?
          10. Above all, is there any LEGAL SYSTEM IN PLACE to PROSECUTE ALL THE CULPRITS INVOLVED INCLUDING MR. ELIJAH MALOK HIMSELF?

          Back to you gentlemen,especially the accountant: I would like to believe that you are what you claim; but how can the "bank of banks" be first to fail? Is this not proof that Mr.Malok earned his position by virtue of ethnicity alone? Frankly, man HAS NO FINANCIAL BACKGROUND WHATSOEVER! The shabby work that the likes of him all over GOSS are doing speak volumes about their ability to run a country. Truth be said: this is no time for politics but a call to rescue S.Sudan from itself. What we need at this critical juncture in our quest for independence and stability are competent individuals, not unqualified thugs whose sole aim is to build themselves at the expense of an entire nation!

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  • 26 April 2009 00:18, by AUGUSTINO DENG

    These two people namely Salva Kiir $ the feign Dr Riak Machar,know about why Nile Bank run-out of money. If not, then why Nile Bank was formed? This is because to keep the National Monetary Funds for the seek of the country. On the other hand, borrowing money from the bank is not bad anyway, but you get have some money in the bank apart from the money you want to borrow. I know that it doesn’t happen in that way because these two people namely feign Dr Riak Machar Teny and Salva Kiir Miyardit, are they cause of mess to why the Nile Bank is empty or run-out of money.

    It is an absurd news to hear that the Nile Commericial Bank of Southern Sudan is out of monetary. This proves that these two people are not ready to sustain the dignity of the Southern Sudanese people who were been traumatically suffer in hands of the fucken-domainence people in Khartoum. SPLM claim that they are going to do an election(Inticabat) with Khartoum Government. How are they going to make election and they don’t have foundation? They don’t even know how to deal with the GPA of the country. SPLM is a big mess. I believe that changing of these two people namely Salva Kiir and the feign Dr Riak Machar Teny, will make sense because they are out of management.

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    • 26 April 2009 02:15, by Mel mosa

      The Southern Sudanese are lack of experience to management or to service the country as it is needed but they still blame President Kiir for not having high education. The head of this bank, I befieve may have at less degree of accounting or economic or any major concerning moeny. He/she is a failure and try to blame others for his/her failure. The bank administration should be blame for their borrowing money to someone without proper colaterals. It is bank’s responsibility to set up the rules that borrowers pay bank money. The heads of bank suppose to be punish for give money away without proper hope for payment. The Southerners always hunger for position but when they got it they fail to fulfill as needed and put more blame on others while it is their failure.

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    • 26 April 2009 02:24, by Mel mosa

      I agree with you Mr Augustino but the right time to change these two people is not come yet. let them continue with their mess until we free from enemy. Let us keep patient. Patient is better then rondom hurry.

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      • 26 April 2009 11:10, by AUGUSTINO DENG

        Hey Mr Mel Mosa,

        Thank you very much my dear for taking your time and read my comment.I understand your point anyway, but the reason why I said that these two people need to be change,is because that they don’t advise themselves for what they can do for the seek of their Southern Sudanese. First of all, it is unfair completely for the National Bank of the country to run-out of money which is really bad. Second, Salva Kiir Miyardit and Dr Riak Machar Teny are our icons of Southern Sudan. I deserve a lot for these two people to work hard in order to consolidate the whole Southern Sudanese together, but they don’t. Why SPLM sometimes send their delegation to United States of America? Simply, the reason is not because that they can come and bought houses or enjoy the luxuries buildings in Washington DC, but the reason is to explore some good innovations in America such as leadership management, business management and education management as well as health care technology. But in reality, they don’t. They just come to White House and mentioned that they are out of money or faced short-crisis of budget while they put money into their pocket and went away with it. Southern Sudan has been helped for a long time by Humantarian Agencies such as UNHCR, IRC, UNICEF, LWF,NPA and so many others NGOs, but since then, nothing had happen completely. They are still seeking for help from the world. I hope this time we as Southerners,need to help other people instead for us to be helped all the times. It become something shame on us to rely on other people.

        I do no the reason why Nile Commericial Bank of Southern Sudan run-out of money is because that, amongst those SPLM commanders, borrow money and use that money for the seek of their own business and after all, they don’t come back and repay the loan. I believe that these people of Southern Sudan, they don’t know actually what is call promissory note which state that if you borrow money from the bank, then you have to repay them back with interest otherwise if you fail to do that, then you should face a penalty from the government. If it happen like that, then the Nile Commericial Bank can’t run-out of money at all.

        My friend Mr Mel mosa, to be honest with you, I do like both our leaders of Southern Sudan including Salva Kiir Miyardit, Dr Riak Machar Teny, Paulino Matiip Nhial, James Wani Igga, Oyai Deng Ajak, Daniel Awet Akot, Kuol Diim and Pieng Deng Kuol just to mention few of the examples. Mr Mel Mosa, you can even imagine yourself that our leaders in Southern Sudan are practicing what is not suppose to be done completely and they fail to follow the protocols of a democracy which they are standing as a pillar of Southern Sudan.

        My advise to the SPLM members, is to work together and discourage the use of corruption, otherwise if not, then there is no need for Southern Sudanese to rely on these leaders.

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        • 30 April 2009 08:16, by Mel mosa

          Mr Augustina

          You did explain your point thoroughly. Your explanation make sense to me and other people. As you know, the Southern Sudanese people have never got leadership or have manage anything before. They need time to understand the system. They need time to get experience. Holding certificate doesn’t means one can success in huge responsibility like to be the head of bank. That is why there is always question of experience in application forms in any develop countries or stable countries. Even Kiir and Riek have not being in position in the government although they were in politics for many years, they still don’t have enough experience to rule the nation properly. My point is that Kiir and Riek are just employ the one hold certificate because they don’t know who has experience and who doesn’t has an experience. But now, they are going to learn more through all these mess or another one who come after them will learn from their mess. So, we are in hard time and we have to be patient in order to overcome this hard time.

          Thanks

          Mel.

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