South Sudan halts parliamentary activities over lack of funds
February 15, 2015 (JUBA) – South Sudan’s parliamentary speaker has admitted that almost all parliamentary activities have been halted due to a lack of funds.
Rundial also revealed that as a result of the deficit the ministry of finance and economic planning has not been able to release the annual constituency development funds to MPs.
“This is due to the financial difficulties we have in the country,” he said, adding that disruptions to the country’s oil production were to blame.
“You know our [main] source of revenue is oil and you know that oil in Unity state has been affected,” he said
“It is now the oil in Paloich in Upper Nile which is producing partially and the quantity it produces cannot cover all the expenses when it is sold given that the oil prices have dropped in the international markets,” he added.
Rundial also attributed the cause of failure to pay constituency development funds to other obligations that the government has to meet with oil proceeds.
These include payments to the Sudanese government for the use of its pipelines and transit fees.
These are in addition to a financial package Juba agreed to pay to Khartoum as part of the September 2012 cooperation agreement to cover the deficit caused as a result of the young nation’s secession in 2011 following a referendum on the matter.
South Sudan has been embroiled in conflict since mid-December 2013 and financial and economic analysts believe the cost of war, including payment for the foreign troops fighting alongside government soldiers against rebel fighters, is placing a huge strain on government resources.
Loans payments for debts accrued from local and international financial establishments and institutions is another added burden on the country’s already fragile economy.
(ST)