South Sudan takes measures in a bide to avert financial crisis
By James Gatdet Dak
April 7, 2009 (JUBA) – Government of Southern Sudan (GoSS) has taken drastic measures to try to avert the looming economic crisis in the region by introducing new mechanisms of collecting non-oil revenues while cutting down on expenditures.
In an extra-ordinary cabinet meeting on Tuesday chaired by President Salva Kiir Mayardit, who also serves as First Vice President of the Republic of Sudan, the meeting discussed a report presented by Dr. Luka Tombekana Monoja, Chairperson of the Ministerial Committee which was formed earlier to manage the financial crisis in Southern Sudan.
In the last joint Council of Ministers session which included Presidential Advisors, Governor of the Bank of Southern Sudan (BoSS), representatives of the World Bank and Joint Donor Team, it became clear that the region was in serious financial crisis due to the combined global fall in oil prices, lack of inflow of GoSS share of oil revenue from the Government of National Unity (GoNU), improper collection system of non-oil revenues and mismanagement of GoSS money by government officials.
According to the Government’s Spokesperson, Gabriel Changson Chang, the meeting resolved to conduct significant engagement with the Khartoum-based Presidency in the Government of National Unity, to ensure that it repays existing arrears of GoSS shares of oil revenues since 2008 and should not accumulate new ones in 2009.
Chang added that GoSS would also engage with GoNU at the highest level to reverse the unilateral decision by GoNU to deduct money from GoSS’ share of oil revenues to finance the upcoming national elections.
GoSS argues that national elections are the responsibility of GoNU.
He said the Task Force headed by the Minister of Cabinet Affairs, Dr. Luka Tombekana Monoja, which composes of several ministers works to find a way out of the financial crisis.
Chang further added that taxes on luxury items should be raised and tax revenue collection should be reviewed so that new mechanisms are devised.
He further said the Council resolved to strengthen agricultural and animal productions in the South to reduce dependency on imports from neighboring countries which would also reduce current high prices of food commodities in the region.
New Tax ID cards will be introduced and imposed on all business owners to avoid evading payment of taxes to the Government.
Minister Chang added that the Council resolved to cut salaries of constitutional post holders in Southern Sudan by five per cent (5%) but should not temper with the salaries of civil service employees.
He further explained that clean up of payrolls by weeding out ghost names, and to review formation of ministries and independent Commissions in order to save some money, was among the measures taken by the Government.
Several additional pending measures have been assigned to the Task Force to study and devise mechanisms to recommend for action by the Government and other relevant organizations.
These include placing an immediate freeze on GoSS Spending Agency not to sign new contracts and to create a central register of all the existing contracts with the view to renegotiate, amend or cancel some of them as necessary.
The meeting also resolved to cut GoSS operating expenditures by 50%, but to protect capital expenditures.
It resolved to review the use of luxury vehicles by government officials and to limit the expensive movement of senior government officials abroad.
The cabinet resolved to avoid non-payment of salaries and to avail petty cash for some minor daily running costs such as vehicles maintenance and fuel, etc.
The meeting also recommended that GoSS should request Donors to frontload their 2009 Multi-Donors Trust Fund (MDTF) contributions.
GoSS also requests Donors to increase funding to the Capacity Building Trust Fund (CBTF) to enable GoSS to develop a comprehensive payroll, including for the Sudan People’s Liberation Army (SPLA) and other organized forces.
It also requests Donors to provide rapid funding to support immediate implementation for the first 35,000 candidates of the forces to be demobilized, disarmed and re-integrated into the civil society.
GoSS also aims at boosting its foreign currency reserves by trying to receive its share of oil revenue in hard currency.
The cabinet expressed optimism that Southern Sudan has abundant sources of revenues, and if managed properly, would avert the economic crisis it now faces.
The Government declared to communicate the fiscal crisis and its response to the wider public and directed the Ministry of Information and Broadcasting to come up with communication strategy for dissemination.
(ST)
Gatwech
South Sudan takes measures in abide to avert financial crisis
Oh, my God,
First of all, greetings to readers. Is good to be back to my beautiful town, Malakal, after spending days in Kampala where I missed this wonderful website.
It looks like the South Sudan government is in very, very serious crisis and bankrupt, or you can say it is a failed entity in all aspects that include insecurity, political incompetence of President Kiir and now economic or financial disaster.
President Salva Kiir should honorably resign because his incompetency is beyond repair. If he doesn’t, then the parliament in Juba should impeach him before the masses take the matter into their own hands.
I knew long time ago that this tribal administration, decorated with plain traditional thieves, will drag this promising nation to disaster. People grab money like the way they grabbed lands of Equatoria, no sense of being a government or leaders at all. Salva Kiir also refused to listen to his constitutional aides like his Vice President. He allowed himself to be separated from his Vice President’s wise advices by his tribal self-imposed advisors. Some want to spoil his alliance or understanding with Dr. Riek Machar so that he is left vulnerable and dragged to a bottomless pit. What a politically naive leader like Kiir!
While I was in Kampala, a certain Ugandan lady approached me. She claimed that she is now rich because of being to Juba for only six months. She claimed that Directors and Directors-General were her customers who could write her checks with sums of hundreds and thousands of dollars in some cases just to appease them with her female gift.
She told me that a Dinka man told her proudly that the Dinka are the richest tribe in South Sudan. I looked at her and asked; when did he tell you that the Dinka started to become the richest tribe? I told her, my friend, that is not true. Go to their villages and see their mothers, fathers, brothers and sisters to see if they are rich or look like those ones in Juba. I explained to her that for that Dinka guy to claim being very rich is like a thief who was poor yesterday, but robbed a bank of its millions today, and claims to be rich for four days before the police catch him, recover most of the money and lock him up in jail.
The situation GOSS is now in was a result of the corrupt system in the SPLM/A under the leadership of Dr. John Garang de Mabior. We would not expect it to change over night. Salva Kiir is just continuing with the blessed corrupt practice during the war. This is the only way he could run the government. If we corner him, he will just get confused and may commit political suicide beyond human reasonable imagination. He may just decide to drag South Sudan on fire by acting crazy and attacking whoever he thinks is a challenger to him or a choice of the people. Because he fears to face El-Bashir, he may create a crisis in the South as an expression to pressures on him.
Peter the great
Lies lies and more lies
This government of thieves aka Government of Stupid Stealer (GOSS) has yet again come up with what it does best, ie tell us another lie without out even flinching. The idiotic council of minister has yet again come up with resolution after one of it numerous so called “extra ordinary” council of ministers meeting. After the crises in Kenya, they had the same resolution, after the roads were closed due to rains in 2007 they came out with the same resolution, recently after the financial crises they said the same thing. These idiots along with their clueless head needs to be replaced. Salva Mathok was recently caught trying to smuggle stolen money to Uganda, and the idiotic president chose turned a blind eye, just as he did on numerous occasions when his cohorts such as Arthur Akuein, Kuol Athian and many more steal money. Please Gov of Stupid Stealer, save us from all this stupid lies.
God help South Sudan