One month on, no reprieve for Juba as donors remain tightfisted

By FRED OLUOCH, The EastAfrican, JUN/18/2016, SSN,

IN SUMMARY:

After one month in existence, the South Sudan transitional government is reeling from a lack of funds to run its operations.
Despite the formation of the transitional government, donors are demanding that the Central Bank and the Ministry of Finance tighten regulations and eradicate the dollar rent seekers, fight official corruption and wastage, and empower the National Revenue Authority for revenue mobilisation.
The South Sudanese pound continues to weaken and there is a possibility of currency crash unless a bailout comes from international community

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After one month in existence, the South Sudan transitional government is reeling from a lack of funds to run its operations.

President Salva Kiir has blamed donors for going back on their promise to release the funds as soon as he and his rival Riek Machar formed the transitional government of national unity.

But the return of Dr Machar in April and subsequent formation of the transitional government has not unlocked aid money, as most donors — especially the US and the European Union — are demanding economic reforms and implementation of key provisions of the August 2015 peace agreement.

Aggrey Tisa Sabuni, presidential economic adviser, said the government had been negotiating with the donors over budgetary support but this programme was disrupted by the outbreak of civil war in December 2013 and negotiations have to begin afresh.

Projected oil revenue

Having reduced its budget by 6 per cent in the 2015/2016 financial to $3.6 billion, South Sudan was expecting grants of $54 million from donors to add to the projected oil revenue of $255 million and non-oil revenue of $76 million per month.

But global oil prices dipped from $115 to $46 per barrel, seriously affecting the country’s net oil revenues, as production also dropped from 350,000 barrels 160,000 barrels per day during the civil war.

By May 2016, oil revenues had fallen by 75 per cent to $60 million a month. Now, the country generates only $40 million a month in tax revenue.

Despite the formation of the transitional government, donors are demanding that the Central Bank and the Ministry of Finance tighten regulations and eradicate the dollar rent seekers, fight official corruption and wastage, and empower the National Revenue Authority for revenue mobilisation.

South Sudan charge d’affaires in Kenya Jimmy Deng said that the partners in the unity government have agreed on programmes for economic recovery and national reconciliation.

“Our international partners are not forthcoming with their pledges for financial assistance. We are trying to harness our internal resources from taxes and Customs duties to meet some of the obligations but they are either limited or not enough to implement all the programmes,” said Mr Deng.

James Gatdet Dak, press secretary in the Office of the First Vice-President, said that despite the executive arm of the transitional government having been formed over a month ago, it is still a skeleton because parliament is yet to be reconstituted and the National Constitutional Amendment Committee lacks funds to begin its operations.

But Jacob Chol, the head of political science department at the University of Juba, told The EastAfrican that donors are not showing any signs of releasing money soon because the transitional government is yet to provide a concrete blueprint to reform the economy.

The South Sudanese pound continues to weaken and there is a possibility of currency crash unless a bailout comes from international community.

“These days, in Juba, if you go to a restaurant, you have to pay for food in advance, as the price may change before you finish your meal,” said Mr Chol. END

2 Comments

  1. Beek says:

    Globally, they beg a lot in order to pay their Hotel’s rooms and create no service than only for themselves.

  2. Toria says:

    Fred;
    “These days, in Juba, if you go to a restaurant, you have to pay for food in advance, as the price may change before you finish your meal,” Ha ha ha ha ha ha; This is the best quote of the month.

    Apart from tribalism, let us be honest for once. USA and her partners failed to smell the coffee. Some of us were shouting on the top of our voices that it was a big mistake for TROIKA to hand 100% power over to SPLA after the so-called “independence” without including other political parties of South Sudan.

    Historical facts:
    Before the formation of SPLA in 1980s, there were other organized political parties already in existence since 1960s, they even have well written constitutions, they had well experienced members who knew how to managed a functioning government. Since then we even had a better functioning parliamentary discipline than the mambo jumbo happening now in Juba.
    But USA who lead the way for S. Sudan’s independence turned blind eyes to look at those who were not carrying guns, and especially because the man Dr John Garang was American educated puppet they thought giving power to Dr Garang was the smartest thing.
    Since that time even I knew that was the dumbest idea right from the get go. In the first place Dr. Garang was a communist, he allied himself with then USSR and Cuba. If that doesn’t ring a bell then what else? Assuming that USSR and Cuba were both hostile nations to American foreign policies.
    So, what is my point here? MY POINT IS AMERICA AND HER ALLIES FAILED THE PEOPLE OF SOUTH SUDAN (i.e. THE ordinary UNARMED CIVILIAN POPULATION), BY GIVING EVERYTHING FREELY INTO THE HANDS OF NOT ONLY SPLA BUT TO DINKA TRIBE.
    Therefore; AMERICAN POLICY IN SOUTH SUDAN FAILED MISERABLY, and them Americans have no one to blame but themselves for being double standards. What a shame on USA?

    He may be one of the worse ideologue in the history of Sudan but Dr. Hassan Al Turabi spoke the truth. Even before independence late Turabi predicted this. Hassan Al Turabi said;

    “South Sudan will never be a stable nation because of dinka tribe ego to rule (with violence, stupidity, ignorance and iron fist dictatorship, BUT) without development”.

    Here is another pure stupidity of jenge so called intellectuals. Please read this and tell me if a real human being can reason like this: http://www.sudantribune.com/spip.php?article59351. What a shameless foolish arrogant spokesperson of our so-called president????
    In conclusion:
    Jengeism or Dinkocrazy or Kraalism or Jieng Corrupted dEvils i.e. JCE, have destroyed South Sudan and so we need something different such as:
    We need a system that will seek wisdom and brainworkers not fat belly and lazy arss losers in Juba.
    We need a system that will allow its citizens to debate openly in public without fear and being killed for their thoughts.
    We need a system that puts its people first not last
    We need a system that cares for even the vulnerable like children, women, elderly, disabled and sick not killing them
    We need a system that will produce and not beg and beg everyday
    We need a system that will look at its citizens as equals not some classes or tribes are better than others
    ETC.
    Fred.
    South Sudan is a failed nation and there is nothing they can do but to surrender the nation to UN Trusteeship before nothing is left to pick up from.

    Equa Toria
    Free Equatoria Armed Resistance
    F.E.A.R

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