South Sudan risks losing EAC membership over default

South Sudan faces the risk of having its membership of the East African Community (EAC) suspended over delay in remitting its share of contributions to the bloc.

South Sudan is required to pay $8 million to the EAC as contributions annually. Africa’s youngest nation became the 6th member after joining the regional body in April 2016.

Kim Gai Ruot, an MP representing South Sudan at the East African parliament, told Radio Tamazuj Tuesday that South Sudan’s membership could be suspended should it fail to pay outstanding arrears within two months.

He further said South Sudan government has been in default of its financial obligations for years resulting in it owing a total of $27 million.

“There are sanctions if a partner state failed to remit its contributions. If you failed to pay your contributions within 18 months, your membership can be suspended,” he explained.

Article 143 of the treaty is however not specific  on sanctions to be undertaken as it stipulates that “a partner state which defaults in meeting its financial and other obligations under this treaty shall be subject to such action as the summit may on the recommendation of the Council, determine.”

Article 146 of the treaty says the summit may suspend a partner state from taking part in the activities of the bloc if that state fails to observe and fulfil the fundamental principles and objectives of the treaty including failure to meet financial commitments within a period of 18 months.

Kim said that South Sudan’s failure to clear its arrears has affected them, pointing out that the youngest nation does not enjoy all benefits offered by the bloc. He added that the EAC budget supports activities carried out by various organs of the community.

“This has affected us as South Sudan MPs in particular. The other partner states have already paid their financial obligations,” Kim said.

He noted that they discussed with South Sudan authorities the issue of financial obligations to the EAC bloc, but no positive response so far.

Minister of Trade and East African Affairs Paul Mayom could not immediately be reached for comment.

In March, South Sudan paid $2 million only to the bloc in arrears.