Amid Worst Financial Crisis, President Kiir Doles out Public Funds to Private Companies
3 min readPresident’s Order In US $3 Million Loan
South Sudan’s President Salva Kiir ordered the Ministry of Finance to disburse US $3 million loan to a construction company.
By Waakhe Simon Wudu
The Public Account Committee (PAC) of the National Assembly has demanded details behind release of US $3 million dollars to Mamsco Construction Company as a loan.
The PAC demanded to know the terms on when and how the money was released to the company.
The Minister of Finance and Economic Planning Kosti Manibe failed to convince the committee after he failed avail document related to the details of the loan.
However, Kosti said the approval of the money came from the President and thus did not undergo contractual procedures as required by law.
“The shareholders of Mamsco Construction Company approached President of the Republic of South Sudan, who instructed the Ministry to grant Mamsco Construction Company the loan,” Kosti told the PAC.
“The request was a one page document pleading with the president to assist them with the said loan. The money was disbursed, no contract agreement, the disbursement was based on the strength of the letter of the President,” he said.
The absence of contract used in releasing the money means that no details are available as to when the loan could be paid back. It was not scheduled and therefore the Ministry has not done any thing to recover the loan.
The PAC has given the Ministry more time to prepare and re-appear before the committee for another hearing.
The committee members demanded to be availed with details of how the money was released, list of Mamsco shareholders and board of directors.
“If you fail to do the right thing we will ask you to recover this money from the company because you are accountable,’ Chairman of the PAC Kom Kom Geng told the minister.
The move by the PAC comes after it launched investigations into the 2007-2008 Auditor General report on the expenditures of the public finances.
The reports cited numerous irregularities on how the public finances have been used by the government during the time.
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