Business exploitations in South Sudan

By Steve Paterno

February 22, 2009 — In an inept effort to lure investors, the Minister of Regional Cooperation, Barnaba Marial Benjamin, a.k.a. Dr. Disaster, portrays South Sudan as a dangerous but yet attractive place for the survival of the fittest?the “Wild West” frontier ready to be exploited, corrupted and depleted if possible.
In drove, foreigners from all over are flocking to South Sudan; mainly from the neighboring countries of Uganda, Kenya and Ethiopia, and from far-off Eritrea, Somalia, and South Africa. Those who are lucky, make fortunes in real-time-cash at an awfully fast rate. The so unlucky ones get cheated, robbed, beaten, imprisoned or murdered. In a survival of the fittest scenario, all things considered, one hopes for the best and prepares for the worst.

Key players in the exploitation process are the officials in the inner-circles of the government of South Sudan; most of them cashing millions of US dollars though via shadowy deals and by proxy operations. Some of them are in thrilled mode for having suddenly acquired incredible fortunes. For example, a minister such as Albino Akol Akol is reported to have euphorically bragged to one of the foreign government officials about his company, the millions he makes, and his cozy relationship with the Chinese. With no regards for conflict of interest, it is common knowledge that almost all high ranking officials either own or are affiliated to most of the companies operating in South Sudan. Many reports suggest that government officials engage in deals and counter deals in issuing bogus contracts to fictitious companies, which don’t deliver in all the contractual agreements signed. Kickbacks and bribes have no places in South Sudanese vocabularies while procurement and bidding are unheard of terminologies.

Recently though, there is one jaw-dropping deal that has generated a lot of interest, particularly in a foreign press. Perhaps, it is because of the personalities involved, or may be, because of the exotic nature of the deal. The deal between, Philippe Heilberg, CEO of New York based investment firm Jarch Capital and Gabriel Matip, (the son of General Paulino Matip who is South Sudan deputy commander in chief), involved a leasing of a substantial junk of land to Jarch Capital affiliate, the Jarch Management Ltd., which is headquartered in Hong Kong and registered in British Virgin Island. The deal also enables Jarch Management Ltd. to purchase 70 percent interest from LEAC, an agricultural company that belongs to Gabriel Matip. According to Heilberg, the land can only be used for agriculture, preferably growing grains for both export and local consumptions. Heilberg, however, does not rule out, if and when South Sudan becomes a recognized independent state, that his company would seek rights for the exploitations of minerals resources. With billions of dollars expected to be invested in this deal and a long duration of operations in that land, it seems like a huge ambitious project. Heilberg says that he wants the people of Southern Sudan to prosper and has even pledged to donate to local communities at least 10 percent of his profits.
Showing a sheer boldness, Heilberg views this deal as a good investment where he stands to profits. He says he is not an NGO, but a business person who is looking to make profits from his investments. He shows confident in his ability to make a good investment choice that by being on the top of his graduating class and also one of the most successful investors in the Wall Street in 1990s as well as an expert in emerging markets; anything could hardly go wrong in what he does. Heilberg is also very sure of the abilities of his team which include a former US diplomat, a former Central Intelligence Agency (CIA) operative, and several top African experts who are all in the management of Jarch Capital.

According to Heilberg, he is comfortable striking deals with General Paulino Matip as oppose to the other officials in government of South Sudan. He says, “General Paulino wants a united Southern Sudan and sees all the people of Southern Sudan prosper and have a better life not just his tribe.” In order for his project to work, Heilberg says he needs stability in South Sudan and leaders with long term vision not short term gains.
For starters, Heilberg is not new in South Sudan. He has acquired both friends and foes among the officials of South Sudan government. For example, in 2006, Heilberg issued a press release, accusing the Sudan People Liberation Movement (SPLM), a sole ruling party in South Sudan for violating an oil contract that the SPLM signed with Jarch Capital in the year 2003. In the release, he threatened to take legal actions with potential damages exceeding 10 billion US dollars to counter the deal that some officials made with the then White Nile Ltd. Company: another obscure deal that was so egregious that it was laughable. Heilberg makes specific reference to individuals who were involved or were made aware of the deal. The individuals include; Dr John Garang (late chairman of SPLM), Rebecca Nyandeng (advisor to South Sudan President), Dr. Riek Machar (Vice President of the Government of South Sudan), Kuol Manyang Juuk (Governor of Jongolei State), Arthur Akuien Chol (disgraced former Minister of Finance), Dr. Lual A. Deng (State Minister for Finance in Khartoum) and Steven Wondu (Ambassador in Japan).

Maybe, it is this bitter experience or dealing with the ethnically Dinka officials led by Dr. John Garang, which turned and pushed Heilberg into a deal with ethnically Nuer officials led by General Paulino Matip. To put it into perspective, the Dinka and the Nuer are not only traditional arch-rivals, but Dr. John Garang is a sworn enemy to General Paulino Matip. So, it makes sense that after having broken a deal with Garang, Heilberg has nowhere to turn but to Garang’s enemy, Matip. To prove this point further, Heilberg staffed the board membership of Jarch Management with a bunch of Nuers who include General Paulino Matip, General Peter Gadet, and Joseph Wejang, the Minister of Health in the Government of Southern Sudan.

Whatever the case, some new realities with new dimensions enter South Sudan where systems, procedures, and institutions are dysfunctional and relegated to favor back door individual dealings, ethnic alliance, and institutionalized corruption. Buried and forgotten in all these shadowy processes is the aspiration of the South Sudanese people that they have been struggling for. Their aspiration calls for better governance; democracy, transparency, equality and promotion of prosperity to all. The new reality is that there are no systems, procedures and institutions to cater for and protect all, but only for the few powerful individuals in positions of power who strike it big for themselves. The situation indeed creates the real setting of the survival of the fittest or in the words of Americans, the “Wild West” frontier. However, the two billion dollar question remains: should the South Sudanese go to war once again in order to create the systems, procedures, and institutions that cater for and protect all or they should settle for the “Wild West” country?

Steve Paterno is the author of The Rev. Fr. Saturnino Lohure, A Romain Catholic Priest Turned Rebel. He can be reached at [email protected]