Identifier
Created
Classification
Origin
07KHARTOUM157
2007-02-04 11:24:00
CONFIDENTIAL
Embassy Khartoum
Cable title:  

SO. SUDAN: SOUTH'S MINISTRY OF FINANCE WRACKED BY

Tags:  PREL ECON KCRT SU 
pdf how-to read a cable
VZCZCXRO7320
OO RUEHROV
DE RUEHKH #0157 0351124
ZNY CCCCC ZZH
O 041124Z FEB 07
FM AMEMBASSY KHARTOUM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5978
INFO RUCNIAD/IGAD COLLECTIVE PRIORITY
RHMFISS/CJTF HOA PRIORITY
C O N F I D E N T I A L KHARTOUM 000157 

SIPDIS

SIPDIS

E.O. 12958: DECL: 02/03/2017
TAGS: PREL ECON KCRT SU
SUBJECT: SO. SUDAN: SOUTH'S MINISTRY OF FINANCE WRACKED BY
CORRUPTION CHARGES

REF: A. KHARTOUM 00039


B. 06 KHARTOUM 02636

Classified By: P/E Chief E. Whitaker, Reason: Section 1.4 (b) and (d)

C O N F I D E N T I A L KHARTOUM 000157

SIPDIS

SIPDIS

E.O. 12958: DECL: 02/03/2017
TAGS: PREL ECON KCRT SU
SUBJECT: SO. SUDAN: SOUTH'S MINISTRY OF FINANCE WRACKED BY
CORRUPTION CHARGES

REF: A. KHARTOUM 00039


B. 06 KHARTOUM 02636

Classified By: P/E Chief E. Whitaker, Reason: Section 1.4 (b) and (d)


1. (C) Summary: The troubled finance ministry in the
Government of Southern Sudan (GOSS) has been hit by new
allegations of corruption. The latest dispute concerns $60
million in interim payments from Khartoum to the Sudan
People's Liberation Movement (SPLM),most of which the SPLM
believes was diverted into unauthorized bank accounts. There
is wide speculation in Juba that the finance minister may be
sacked. End summary.

--------------
Trying to Account for $60 Million
--------------


2. (C) The latest scandal to hit the troubled Ministry of
Finance and Economic Planning concerns $60 million in cash
transferred from the Khartoum government after the signing of
the Comprehensive Peace Agreement (CPA) in January 2005. It
is not clear who received the funds, or what expenses they
were intended to cover.


3. (C) In a speech in Juba marking the second anniversary of
the CPA on January 9 (Ref A),Sudanese president Omer
al-Bashir lashed out at the SPLM, saying the money should
have been used to bring home exiled Southern Sudanese and
staff up various CPA committees. Nonsense, replied SPLM's
Deputy Secretary General for the North Yassir Arman at a
press conference two weeks later. As quoted in the
English-language Khartoum Monitor, Arman said the money "was
given to the SPLM for the establishment of institutions in
preparation for the formation of the Government of Southern
Sudan and to enable the SPLM to transform itself from an
armed movement to a political party." SPLM Secretary General
Pagan Amum echoed this account in a discussion with ConGen
January 31.


4. (C) Amum went further, however, and accused finance
minister Arthur Akuien Chol of attempting to shift $30
million of the funds to a Nairobi bank account set up in the
SPLM's name, but without the SPLM's authorization. The SPLM
stopped the transfer last December, Amum claimed, and on
January 11 he met with Akuien to demand an explanation.
Summoned by the SPLM parliamentary caucus to account for the
funds, Akuien failed to appear. Amum also claims that GOSS
President Salva Kiir gave Akuien two weeks to account for
money. Since then, Akuien has been "dodging" the president
and party officials, Amum said. "That's when I decided to
spill the milk" by making charges against Akuien public, Amum
said.

--------------
Troubled Record
--------------


5. (C) The alleged misuse of $60 million comes on the heels
of another scandal involving an alleged $4.5 million
overpayment for 100 GOSS vehicles (Ref B). Finance minister
Akuien attempted to fire five top officials in his ministry
last October over the vehicle scandal and separate
allegations of fraudulent waiver of customs duties. GOSS
President Kiir intervened, however, saying the officials
could not be fired without a proper investigation.


6. (C) According to Amum, the investigation has concluded
that all but one of the officials was culpable. The
investigation also showed that the problems were "linked to
the minister."

--------------
Minister on the Chopping Block
--------------


7. (C) Finance Minister Akuien, a stalwart of the liberation
struggle, gets low marks from many interlocutors for
technical competence -- though he managed to shepherd a $1.4
billion budget for 2007 through a surprisingly contentious
debate in the Southern Sudan Legislative Assembly to final
approval on January 29. One MP told us Akuien fumbled many
of the legislators' questions during the budget debate,
prompting one to ask why he remained in office while all his
subordinates were gone for malfeasance. The ethics charges
now plaguing Akuien have fueled growing speculation in the
press that he will be sacked. In any case, Akuien figures
prominently in recurrent rumors in Juba of an imminent
cabinet reshuffle.
POWERS