South Sudan parliament rejects financial bailout for Nile Commercial Bank
By Ngor Arol Garang
January 20, 2010 (KHARTOUM) –The Juba-based regional Legislative Assembly of South Sudan has, rejected this week a call made by the Finance and Economic Development Minister seeking parliamentary approval for financial bailout package to the beleaguered Nile Commercial Bank which has been struggling with rising defaults among its borrowers.
In a parliamentary session chaired by Jimmy Wongo, acting Speaker of the legislative Assembly, the house has unanimously rejected a twenty five million Sudanese pound bailout package arguing that the lost funds should have been recovered from the Bank itself and not from the government.
“There are no basis why this money should be chopped off the government budget already allocated to ministries and service commissions,” Jimmy said.
This came shortly after commencement of the house which went into a brief recess following a parliamentary permission allowing all members of parliament go back to their constituencies for nomination and selection processes in their respective states.
The Bank, being the first financial institution to be established in the semi-autonomous region after the civil war effectively came to a conclusion in 2002. The following year the head office was established in Yambio which was later on moved to Rumbek before it was officially moved to Juba in December 2005 after the signing of the Comprehensive Peace Agreement (CPA).
This will be the second attempt by the government in just over one year to rescue the bank from collapse. At the verge of collapsing last year, the regional government in the one of its cabinet meetings agreed to assist the Bank out of total collapse.
However, the government has reportedly also sought a restructure the bank’s management as an alternative to bailout.
A bailout of about ten million dollars was last year made by the regional government of Southern Sudan hoping the central government in Khartoum would join in.
As repeated failures were blamed on managerial board, Mrs. Marta Michya, the then Assembly branch manager in Juba was sacked.
This came following a stern statement issued by Elijah Malong Aleng, the governor of the South Sudan Central bank to publish names of defaulters if they hesitate to repay the money last year.
Aleng, according the CPA power sharing protocol, serves as Vice Governor of the Central Bank of Sudan.
As a private financial institution with the right to sue or be sued, NCB is left to decide what to do legally with the defaulters most of whom are said to be officials of the government.
(ST)
Gatwech
South Sudan parliament rejects financial bailout for Nile commercial Bank
Bravo South Sudan parliament,
The greedy “akul baraw” group drained the bank of its liquidity. Let them bring the money back. Big names of their ministers, MPs, etc are all there. They should be taken to court.
Shame to the “akul baraw” group of food lovers. The “akul sawa” group is coming to take over this GOSS.
Koolman
South Sudan parliament rejects financial bailout for Nile commercial Bank
WELL DONE OUR HONORABLE MEMBERS OF PARLIAMENT, UNLESS YOU WANT TO LOAD THE POCKETS OF THESE TALL UGLY BLACK DOGS WITH OUR MONEY THAT’S WHEN YOU CAN GIVE A GREEN LIGHT ON THE BAILLOUT PACKAGE
Space
South Sudan parliament rejects financial bailout for Nile commercial Bank
What! Bailout? There is no way an institution which collapsed due to poor financial management be bailout by public money. This Bank has enriched individuals’ pocket by being offered huge loan by Government using Public money which should have been used otherwise.
Bailout soud reasonable if such failure was brought about by natural or unavoidable factors. But not when you borrowed, take, give public money to individuals to establish themselves. Despite the serious need of South Sudan own Commercial Bank, Nile Commercial Bank is no alternative.
Under which management do you want to bail NCB out? The same employees who do not understand roles and functions of commercial banks or what? It will amount to total misuse of public money if cabinet proceed with this plan.
Peter Rhiak Daniel
South Sudan parliament rejects financial bailout for Nile commercial Bank
Well done SSLA for rejecting the bailout of NCB. Why should public money be used to help the bank whose manangemnet decide to make it collapse intentionally by giving loans to those who had no assets to be sold out incase they fail to pay back?. What security measures were laid before loans are granted?.
Why are most of the borrowers government officials?. This shows how undecisive the management of NCB was because they thought giving loan to government official was safer than giving loan to a normal citizen.
Let the NCB officials and their borrowers scoop out the money which they had taken from their pockets. Mr.Malok Aleng should publish the names of all the borrowers publicly so that they are known before the elections because some of them might be aspiring to be elected to offices yet had contributed to failure of national institution.
Nile Commercial Bank was a test of our capability to run our financial institution with greed for money in so many office holders.They want to get reach overnight. It is easy to borrow but paying money back is as difficult as touching ones nose with ones tongue. Its collapse is a real challenge. South Sudan citizens had a lot money by keeping their cash in houses since there is Bank being trusted any when NCB locked in some citizens’ cash.
Let the borrowed money be paid with interest or take the culprits to court of law after which you NCB management might apply for bailout.
South Sudan Anti-corruption Commission had never convicted anyone of corruption since its formation. This the right time/place where the commission should exercise its roles and bring to book the concerned persons. It doesn’t matter which big offices these people are holding but what matters is the safety of our institution and public money.
Well done SSLA.
Hillary B.M.L,M
South Sudan parliament rejects financial bailout for Nile commercial Bank
Issac Voni was jailed and kicked because of this Dead Bank, so be aware otherwise write as they want.
Time1
South Sudan parliament rejects financial bailout for Nile Commercial Bank
Banks only know how to rip people, let them find their own way around, giving them money will teach them bad manners, this should be a lesson to Banks to do work with responsibility so that money is not wasted, let NCB recover the lost monies.
Dave
South Sudan parliament rejects financial bailout for Nile Commercial Bank
the customers have lost trust to NCB due to stealigs made by these greedy individuals. this give the foreigners bank advantage to win many people as many customers joined their bank after the collapse of NCB. People see these banks most trusted ones. such banks are KCB, equity bank and many more foreigners bank which are exploiting infants bank.Many people now open their account with them because they trust them and they know their money are well save and secure from the hand greedy people.
i think these people who took the public money must be made to arrange the payment, otherwise they must be brought to justice.
Simon Wicheng
South Sudan parliament rejects financial bailout for Nile Commercial Bank
Well Done SSLA,
Atleast your exercising your powers now by checking the Executives. You are our watchdog