Ex-finance minister Salvatore Garang took $400m in exchange for future oil, document shows

JUBA – South Sudan’s former finance minister Salvatore Garang is behind the alleged sale of oil in advance for at least $400 million loan, according to a document from the ministry of finance and planning.

Last week, incumbent minister of finance and planning Agak Achuil said the country’s oil has been sold in advance until 2027 sparking controversy on social media among activists.

The minister however backtracked on his remarks during a meeting at the state house J1 with President Salva Kiir Mayardit and said that his statements were taken by the media out of context.

But a document released by the ministry of finance suggests that former minister Garang took a $400 loan for oil-proceeds from the African Development Bank (Afreximbank).

“Reference is made to the “Term Sheet” dated 2 of May 2019 duly executed between the Ministry of Finance & Planning and M/s Afreximbank, vide which your company has been appointed as designated off-taker of crude oil cargoes allocated for repayment of the USDS 400M term loan facility,” the letter dated October 10, 2019 and signed by Garang reads in part.

“The proceeds derived from the sale of the crude oil allocated will be assigned to M/s Afreximbank towards repayment of the USD $ 400 Million Term Loan Facility that is being availed to the Ministry of Finance and Planning. I am, hereby pleased to irrevocably allocate the following Twenty Five [25] crude all cargoes to Trinity Energy Limited as the appointed and authorized crude oil off taker to the Afreximbank – USD $400 Million Term Loan Facility for lifting between 2019-2023,” it added.

In his statements to journalists last week, Achuil said Garang spent millions of dollars from creditors and those loans were being paid off from the oil.

“The money which was spent before I could come in was $334 million, this is the money people are talking about that I am sitting on, and I don’t want to spent it, that was the money spent by those of Salvatore and Athian,” Achuil said in a press conference in Juba last week.

“The other money was 225 million US dollars, these were the money which were spent and they [WB, IMF] are still waiting for the auditing,” he added.