SPLA CASH-STRAPPED, POUND FOOLISH

UNCLAS SECTION 02 OF 02 KHARTOUM 000926 DEPT FOR AF/SPG, A/S FRAZER, SE WILLIAMSON, NSC FOR BPITTMAN AND CHUDSON ADDIS ABABA FOR USAU DEPT PLS PASS USAID FOR AFR/SUDAN SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV PREL KPKO SOCI AU UNSC SU SUBJECT: SPLA CASH-STRAPPED, POUND FOOLISH *********************** * Missing Section 001 * *********************** KHARTOUM 00000926 002 OF 002 exposed following his death. While recent events in Abyei have served to solidify unity within the ranks of the SPLA and may make soldiers more tolerant of late pay, the SPLA has burned through nearly $400 million in just six months, an alarming rate by any measure. Much of this is for pay, but it is also possible that the SPLA is arming itself as much as possible while oil revenues continue to flow from the North, in preparation for the day when conflict may resume and oil transfers may stop. That may not be a bad idea at all on the face of it, but there is an efficient way to do this and an ill-disciplined, sloppy way and the SPLA seems to have followed the latter. FERNANDEZ