By Dedi Esbon Samuel – November 25, 2024
Lack of transparency is undermining community development in South Sudan’s oil producing states. This situation is exacerbated by silence from residents – who would otherwise hold duty bearers accountable.
The South Sudan Petroleum Revenue Sharing Arrangement provides for the transfer five percent of net oil revenue to the producing states and communities. Two percent for state government and three percent to the respective communities represented by community development committees (CDC).
However, oil producing states such as Unity, Upper Nile and Ruweng administrative area ( A disputed area It bordering former Upper Nile State in the east and Jonglei State in the southeast, Unity State in the south, Warrap State in the southwest, Abyei to the northwest, and Sudan in the north) remain underdeveloped. Citizens lack clean drinking water, the roads are poor, there is no electricity, and all this worsens the living conditions of the people who also have to cope with frequent floods.
The five percent share intended for oil-producing states is shrouded by secrecy and allegations of misappropriation.
A section of a dike in Bentiu. Photo: IOM/Nabie Loyce
One resident of Unity State, who prefers to share one name (Matik) for security reasons believes there is misappropriation and embezzlement of the oil funds by officials, particularly after conflicts erupted in 2013 and 2016.
“When the conflict erupted between the sons of Unity state, people were divided. Those loyal to Dr. Riek Machar left and the ones remaining with the government used that time to embezzle the public fund especially the three percent oil share,” Matik says.
Despite this, many people remain silent.
According to Matik, many people choose silence over the matter for fear of reprisal because it is the powerful individuals that are the taking the money. Oil producing states such as Unity and Upper Nile states also face oil pollution.
Oil exploration companies operating in South Sudan have not fulfilled their social cooperate responsibility mandates and have long been accused of environmental pollution that has gone unaddressed for years.
A number of oil spills have been reported, but there is limited research that has been done on the dangers of pollution to surface and groundwater, including drinking water sources.
A Photo showing dead trees in polluted water in Upper Nile State (photo courtesy)
Revenue Sharing Controversy in Upper Nile
Meanwhile, in Upper Nile state, Governor, James Odhok Oyay, in September this year, suspended all community development Committees from communicating directly to the Ministry of Finance. He demanded that Committees should first write to his office before demanding the three percent allocation.
James Basha, Upper Nile state Information minister says this suspension comes after the governor noticed that the money meant for the people is being mishandled by corrupt individuals.
He explains that the suspension is for short term and will not end until all the committees go back to the communities for reappointment.
Basha reveals that out of the thirteen counties in Upper Nile state, only two have used the allocated funds for development, with the rest underdeveloped.
He particularly singles out Malut County where there is visible development and utilization of allocated financial resources. He notes that the celebrated development mainly happened during the time when the current state Deputy Governor – Dangio Amo was the County Commissioner.
Gatwech Lam Pouch, a member of parliament representing Upper Nile (Photo curtesy)
Gatwech Lam Pouch, a member of parliament representing Upper Nile State’s Nasir County in the National Parliament supports the suspension of revenue sharing.
“There are a lot of issues with the three percent oil revenue allocation. It has even been suspended by the state because it generates a lot of conflicts and disagreement among communities. The reason is simply because of mismanagement,” Pouch says.
Civil Society Roots for Accountability
Civil society groups and environmental activists have long protested the lack of response to reports of mismanagement and embezzlement of funds.
This comes at a time when oil companies still fail the accountability benchmarks over environmental safeguards, safety standards and climate adaptation measures.
Ter Manyang, the Executive Director of Center for Peace and Advocacy (CPA), a civil social organization, acknowledges that there’s lack of transparency in the whole process of oil revenue sharing, starting from the national ministry of finance down to the state level.
Manyang wants to see greater accountability and the establishment of committees to ensure proper management and transparency.
Ter Manyang, executive director of CPA – (Photo by Dedi Esbon
According to Manyang, there is much that ought to change in the Ministry of finance. “The ministry of finance needs to demonstrate accountability and transparency on how they release the five percent. This is because there’s confusion in this process,” Manyang explains, adding “I remember during the governors’ forum, some governors were not aware where this five percent goes.”
To streamline effective utilization of the allocated resources, Manyang advises on the formation of a committee with representatives of youth, women, chiefs and the commissioners from those particular counties to follow-up and investigate the persons behind the mismanagement.
To civil society actors like Manyang, the absence of Community Development Committees (CDCs) in some oil producing states has contributed to mismanagement of oil revenues. “Address this issue before the money gets into hands of individuals,” he elaborates.
2021 Audit Report
An audit report named; Compliance Audit of the Accounts of 2% and 3% Share of Net Oil Revenue of the Oil Producing States and Communities produced by Steven Kiliona Wondu, South Sudan’s auditor general, revealed that from 2011 to 2020, the oil revenue shares were transferred to parties and individual accounts who allegedly used the resources for personal purposes other than for development.
In July 2023, South Sudan’s Transitional National Legislative Assembly (TNLA), in a move aimed at addressing concerns over the management of oil revenues, directed the then Minister of Finance and Planning, Dier Tong Ngor to suspend the transfers of the three percent oil revenue share.
Our efforts to reach the National ministry of Finance and Planning for a comment on this directive and many other issues were futile by publishing time.
This story was produced in partnership with INFONILE and Target Media Group