South Sudan: President Kiir cancels secret multi-million oil deal amid public protests

In a letter dated October 21, 2019, the Ministry of Finance directed the Ministry of Petroleum to allocate 18 crude oil cargoes to M/S MINS General Trading LLC.

 

The ministry expressed direct authority from President Salva Kiir, who is struggling to stamp authority in Africa's youngest nation. It's not clear why Kiir wanted the company paid in crude oil against the laws of South Sudan.

 

The Finance Minister said he approved the letter from the Office of the President, issuing payment to the trading company for supplying food items to the SSPDF, wounded heroes and assembly areas.

 

“M/S MINS General Trading was contracted by the ministry of defense and vererans’ affairs to supply food items to entire SSPDF, wounded heroes, cantonment and assembly areas in accordance with the R-ARCSS,” the letter partly read.

 

But before the deal was effected, South Sudan protested the approach, causing panic and anxiety within presidency. Members of the public questioned the deal, with some terming is 'opaque and inconsistent'.

 

And in a letter from Office of President on Monday, Kiir seemingly succumbed to pressure from members of the public. To pay the debt, Kiir said, the ministry of finance should 'devise its own mechanisms'.

 

"Based on the directive, the ministry of Finance and Planning is directed to devise it's own mechanisms on how to clear creditors demanding payment from goverment," reads the letter from Kiir's office.

 

Since gaining independence from Khartoum, Kiir has struggled to contain political and ethnic violence, corruption, poverty and rampant lawlessness in South Sudan.

 

In September however, his goverment agreed to form a grand coalition partnership with his political nemesis and former Vice President Riek Machar.

 

Through strict timelines under supervision of IGAD, AU and UN, the two agreed to put the goverment in place by November for the sake of peace and stability.

 

"The parties agreed to establish the government in time. When I said 'in time' it means on the 12th of November," Information Minister Michael Makuei told journalists after Kiir and Machar met in September.

 

Mr Machar had taken asylum in South Africa. It took efforts of Kenya's former Prime Minister Raila Odinga and President Uhuru Kenyatta to negotiate for his return to Juba.

 

Last week, envoys from the United Nations visited juba establish progress in anticipated formation of grand coalition government. The team noticed 'less violence and more determination' from the country's leadership.

 

“There is an opportunity for the leaders of South Sudan to make political compromise and move forward to the next phase of the peace process in a credible, transparent and accountable manner,” said Kelly Craft, United States ambassador to the UN.

 

Top state officers in Kiir's government have often been accused of taking advantage of weak goverment systems to steal millions from the oil-rich country. 

 

Many South Sudanese officials have been linked to multi-million properties in Nairobi and other parts of the world. President Uhuru Kenyatta in the past promised to cooperate with Kiir to bring them to justice.

 

Recently, South Sudan agreed with military transition in Sudan to demarcate boundaries around the contested oil rich regions along their border lines. The exercise is yet to commence.