Grain contracts may have played role in removal of S. Sudan minister

October 4, 2009 (WASHINGTON) – The removal of the former finance
minister last May was tied to poor management of a grain reserve fund
established by the Government of Southern Sudan (GOSS), a visiting
minister suggested at a public appearance on Friday.

South Sudan’s strategic grain initiative called for warehouses to be
constructed in each of the ten states of Southern Sudan, while
ultimately state authorities were supposed to sell the grain at
below-market rates and send any revenue to the GOSS.

Contractual obligations related to the grain supplies were
unsustainable, the Ministry of Finance and Economic Planning reported
to the regional parliament on July 28, 2009.

GOSS President Salva Kiir Mayardit had removed the former Minister of
Finance and Economic Planning on May 31, 2009, as part of a larger
cabinet reshuffle. The relieved official, Kuol Athian Mawien, was not
transferred to another ministerial post.

The establishment of the Grain Reserve Fund “magnified the level of
corruption in the South,” Minister of Cabinet Affairs Luka Tombekana
Monoja said at a public event at the US Institute of Peace on Friday.

H.E. Dr. Monoja, whose remarks focused on public resources management,
did not suggest that the ex-minister was guilty of any wrongdoing. He
noted, however, that “The Ministry of Finance gave approval to the
tune of $3 billion US dollars” – an amount well over the annual budget
of the semi-autonomous government.

This figure roughly matches the amount reported to the South Sudan
Legislative Assembly in July by the new Minister of Finance, David
Deng Athorbei. He said that all food security contracts amounted to
SDG 6.26 billion, although the ministry paid only SDG 511 million to
suppliers, based on certification of delivery by state governors.
Governors certified 6.78 million tonnes as delivered.

According to Dr. Monoja, the ministry stopped contracts for filling
the reserve after the beginning of March. “The process to stop did not
go forward fast enough,” said Monoja, adding that Kiir then replaced
the Finance Minister.

Minister Athorbei told the parliament in late July that the grain
acquisition plans were not clear when he took office at the end of
May. An inquiry is going forward by an inter-ministerial committee on
how much grain was delivered compared to how much was paid for. The
contracts awarded have now been suspended.

As part of a process on public resources management approved by the
Council of Ministers on July 31 – the “Juba Compact” – any contracts
must now be registered and verified, and contractual commitments must
be reported to the Council of Ministers.

H.E. Monoja was travelling with Gen. Oyai Deng Ajak, Minister of
Regional Cooperation, along with Akot Lual Arech, the private
secretary to the GOSS president. The delegation has left Washington,
D.C. and on Saturday met with the Sudanese community in Nashville,
Tennessee.

(ST)