South Sudan Denied Access to Ksh5.4 Billion Held in Kenya, Again!

The Court of Appeal on Thursday, March 18 restored orders freezing two bank accounts owned by the South Sudanese Government in Kenya.

The court settled at the decision after YU Sung Construction Company, a firm linked to former presidential candidate Cyrus Jirongo, appealed a directive by the High Court allowing South Sudan to operate the bank accounts. 

The Salva Kiir-led- government had been given permission to operate the accounts on condition that a balance of Ksh5.4 billion is left untouched.

Jirongo's company in its defence argued that the High Court’s decision would put the final outcome of the ongoing case at risk of nullity.

The Jirongo-linked firm secured a deal to construct John Garang Military Academy and Natinga Warehouse in South Sudan in 2008.

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“The honourable judges of the High Court have issued conflicting orders which conduct by judges of concurrent jurisdiction points to a collapse of due process and administrative order in the judiciary to the grave detriment of the Applicant herein who stands to suffer a miscarriage of justice, “the defence lawyer, Ken Kiplagat, said.

Kiplagat went on to say that the Attorney-General of South Sudan did not provide any security for the satisfaction of the consent issued against it in favour of Yu Sung by the East African Court of Justice.

The three-judge bench that consisted of Gatembu Kairu, Patrick Kiage and Daniel Musinga directed that the status quo be maintained. This means that South Sudan cannot withdraw any money from the two bank accounts.^[1]

The first order freezing the two bank accounts was granted in December 2020.

During the ruling, South Sudan argued that it was unable to deliver any services to its citizens.

The Jirongo-linked firm secured a deal to construct John Garang Military Academy and Natinga Warehouse in South Sudan in 2008.

The two later fell out due to contract breach issues and this forced the firm to file a court suit. In its defence, the foreign government argued that the firm never honoured its end of the deal and therefore should not be paid.^[2] 

It was during this process that the court froze the two accounts belonging to the South Sudan government pending judgement.

From left, Cyrus Jirongo, Francis Atwoli, Musalia Mudavadi and Moses Wetang'ula at Wilson Airport in Nairobi on October 14, 2012.

Daily Nation

References

1. ^{^} withdraw any money from the two bank accounts. (www.kenyans.co.ke)
2. ^{^} end of the deal and therefore should not be paid. (www.kenyans.co.ke)