JUBA, JULY 26, 2023 (SUDANS POST) – South Sudan’s parliament on Wednesday directed the ministry of finance to suspend transfer of 3 percent oil share to Unity State until Community Development Committee (CDC) is established to manage the funds.
Changkuoth Bichiok, Chairperson of the Economic Cluster of TNLA, said the committee discovered that the Unity State government has not established Community Development Committees (CDCs) to manage the 3% oil share.
While presenting the budget in its second reading before the assembly on Wednesday, Bichiok said the Committee also directed the Minister of Finance to provide all the communities of the oil producing states and Ruweng Administrative Area with copies of the allocation matrix.
“The Committee Directs the Minister of Finance and Planning to suspend the transfer of the 3% oil share to Unity State until the CDCs are formed and functioning. The Committee further directs the Minister of Finance and Planning to provide all the communities of the oil producing states and Ruweng Administrative Area with copies of the allocation matrix,” he said.
He said the money will only be wired to the accounts of Community Development Committees of the various counties in Unity State.
“This has come very strongly because the communities in Unity State are not getting the 3% oil share and we don’t know where it is ending up,” said Bichiok.
“The parliament decides to suspend the transfer until eight counties of oil producing state and also the neighboring counties in the state formed their committees and establish their accounts and the money will be sent directly to the counties.”
In March 2021, a report by the Auditor General revealed that communities in oil-producing states had not received $85 million from their revenue share over the years.
The audit report also revealed that the 2 percent account meant for the community – and operated by the Bank of South Sudan received $25.5 million.
But between June 2014 and December 2020, $5 million was paid off to individuals and institutions not recognized by the Petroleum Act.
These percentages are to go directly to oil-producing states and the communities living near oil fields, the Petroleum Revenue Management Act of 2013 stipulates.
On the 3 percent account for the oil-producing states, $60 million was wired to the central bank between 2014 and 2020.
But this money was also distributed to more than 20 individuals and private companies without clear reasons.