REPORT OF THE COMMITTEE FOR INVESTIGATION OF CDE. PA’GAN AMUM THE SPLM SECRETARY GENERAL
Table of Contents
Executive Summary 2
(a) Political Issues 5
(b) Administrative and Financial Issues 6
Yenura Investment 8
Bilpham Agricultural Enterprises 9
Red Sea Corporation 9
New Sudan Insurance 9
lmatong Gas Company- 10
Nile Commercial Bank 10
The Citizen Newspaper 10
Printing of ID Cards 10
Payii Roads and Bridges Co. Ltd 11
Bells of Freedom 11
Ebony Television 11
FATTOUCHE INVESTMENTS GROUP HOLDINGS LTD . 11
OTHER SPLM PROJECTS 15
(a) SPLM Freedom Plaza 15
(b) SPLM Plots/Land in Juba 15
The other SPLM Projects: 22
In exercise of the powers vested upon him by Article 25 (1) and (k) of the SPLM Constitution 2008 and Article 23 of SPLM Interim Basic Rules and Regulations, the SPLM Chairperson issued orders No. 01/2013, dated, 23rd July, 2013, order No 02/2013 dated 251h July, 2013 and order No 03/2013 dated 271h July, 2013, for the formation of Investigation Committee to investigate Cde Pa’gan Amum the Secretary General of the SPLM.
The Committee held its first meeting under the chairmanship of Cde James Wani lgga the Deputy Chairperson of the SPLM and adopted the methodology of its work and this include;
Obtaining list of SPLM officials to be interviewed.
To obtain documents relating to financial, administrative and political issues of the SPLM..
Plan visits to locations where SPLM investments are located both inside and outside the Republic of South Sudan.
Engagement of an audit firm to audit the A/C of SPLM from 2008 to date (copy attached).
The Committee had to seek extension of the period of the investigation to enable it complete its work, and this was granted by the SPLM Chairperson.
The Committee after comprehensive and detailed investigation came with this report which covers the following areas;
b) Political issues
c) Administrative and financial issues
2) Administrative and Financial
In conclusion the Committee came up with its recommendations covering all the aspects of the investigation for consideration by the SPLM leadership. The report is concluded with all the required annexes for easy references, this is in addition to the audit report.
The Committee held its first meeting on 26/7/2013 to work out Investigation Procedures and adopted the following methodology:
To obtain and select the list of the Secretaries, Deputy Secretaries and other officials of the SPLM General Secretariat for interview. (Statements attached)
To obtain documents relating to administrative, financial and political Matters of the General Secretariat. (Documents attached)
Plan visits to locations where SPLM investments are located inside and outside South Sudan and they are;
1. Khartoum to follow up on the USD 30 million investment.
2. Renk where Bilpham Agricultural Enterprise is based.
3. Nairobi-Kenya where hard currency of the SPLM Accounts are kept.
4. Asmara in Eritrea where the Red Sea Corporation is based.
5. Washington where Yanura and World Space are based.
6. Viva Cell head office, Fattouche lnvestment Group Holdings Ltd in Juba.
7. New Sudan Insurance Company in Juba and
8. Imatong Gas in Juba.
The Committee managed to send sub-committees to Renk and Khartoum in addition to all the investments inside Juba town. The sub-committees for Kenya, Eritrea and USA could not travel to their respective destinations because most of the documents were obtained internally.
Engagement of an audit firm to audit SPLM Accounts from 2008 up to date. The Committee engaged a National Audit Firm known as JY Auditors and Management Consultants produced attached report.
(a) Political Issues
The Committee interviewed most of the National and Deputy National Secretaries of SPLM. The lists and the statements attached.
On the political statements issued or pronounced by Cde Pa’gan Amum at different functions or occasions regarding the failure of the SPLM leadership and Party to deliver to the people of South Sudan, all those interviewed did not agree with the statements of Cde Pa’gan Amum except Cde Yen Mathew who misbehaved before the Committee for reasons best known to him and had to be dismissed by the Committee. Cde Rasheed Ali the close Aide to Cde Pa’gan refused to appear before the Committee and he was the person in charge of all the investments before the establishment of the Directorate of Investments.
Cde Pa’gan was summoned by the Committee to appear before it vide letter signed by the Chairman of the Committee on 27/7/2013 to answer Charges against him. He responded positively to the letter and appeared before the Committee from the 20/8/2013 to 28/8/2013.
In his response to the political charges, Cde Pa’gan categorically denied violation of the provisions of the Constitution, the Interim Basic Rules and Regulations of the SPLM, despite the fact that there is sufficient recorded evidence in form of interviews and public statements which were played before him. Instead he claimed that he was defending the leadership and the integrity of the Party.
However, in related statements he admitted that he had declared his intention to contest against the Chairman of the SPLM in the next Convention and, added that he was encouraged by Cde Deng Alor to contest for the Chairmanship of the SPLM.
On the 28th August, 2013 Cde Pa’gan Amum while under Investigation suddenly burst out in anger and accused the Chairman of the Party and the Investigation Committee of witch hunting. He further declared that he will not cooperate with the Committee any longer and disrespectfully stormed out and never returned (Statements attached).
(b) Administrative and Financial Issues
(i) Administrative Issues
It is clear from the statements of the Secretaries, Deputy Secretaries and other officials of the SPLM that the General Secretariat had not been holding regular meetings. There is overstuffing in the General Secretariat with most positions occupied by 3 (three) employees except the positions of the Secretary General and the Deputy Secretary General. After the disengagement of the SPLM North, all South Sudanese who were absorbed in the Secretariat in addition to the National Secretaries based in Khartoum had to be transferred to Juba-Southern Sector which was the host.
The General Secretariat has no office blocks and facilities; it is residing in prefabricated offices. Thus creating unconducive working environment while the Secretaries are driving a fleet of expensive cars. The General Secretariat never met for the last two years.
There is lack of co-operation and harmony in the Party. This situation created negative impact in the administration of the Secretariat. The Secretaries admitted that the SPLM has failed to address issues of the Party in the States.
The failure of the administration has created a wide gap between the Party and its members at the grassroots level due to lack of planned and clear political outreach programs.
There is lack of coordination and clear directives between the General Secretariat and the SPLM Caucuses of the National, States, legislative and Executive organs.
The General Secretariat performs its functions and duties on ad hoc bases. There are no clear programs approved by the General Secretariat and the Leadership of the Party. Employment in the party was not based on qualifications other than personal relations.
There is no clear indication that many of the employees are trained SPLM cadres, hence their level of awareness about the Party ideals is in question. This is attributed to lack of clear training policy and non-establishment of a political school.
Lack of an administrative policy presented by Chief Administrator to the leadership of the Party for approval resulted into each Secretary running the affairs of his Secretariat on adhoc basis.
Cde. Pa’gan in his capacity as the Secretary General is the person in charge of the day to day activities of the SPLM. Nevertheless he denied his own failure and attributed most of the failures to the leadership of the Party. This allegation is not substantiated or supported by any of the Secretaries interviewed by the Committee.
(ii) Finance Issues
According to the statements of the SPLM Secretaries, including the Secretary for Finance, Deputy Secretaries and other officials, the SPLM is being run without approved budgets since 2009 up to date.
All the SPLM activities and programs including Elections and Referendum were funded on Adhoc bases. Cde Pa’gan claimed that he submitted budget proposals to the Political Bureau but failed to produce any evidence to substantiate his claim.
The Secretariat lacks an approved nominal roll of employees. The salary structure is approved on ad hoc basis by Cde Pa’gan Amum without seeking approval from the Political Bureau. The salary structure, privileges and emoluments are proposed to and approved unilaterally by Cde Pa’gan.
The SPLM assets being movable or immovable are not procedurally procured. Contracts were negotiated and approved by the Secretary General without seeking approval from the Political Bureau; e.g. The Freedom Plaza among others.
Huge sums of the money are spent on internal and external trips and Cde Pagan takes the lion’s share. Cde Pagan has been approving huge sums of money for dubious bodies and suspicious transactions, e.g. the investment Yenura Pvt./ World Space affair.
In terms of the Investments of SPLM, Cde Pa’gan and his close aide Rasheed Ali single handedly handled the SPLM investments. It was thereafter that the Directorate of Investment was established.
According to the statements of the Secretaries and Deputy Secretaries, the SPLM investments were as follows:
Yenura/ World Space was given USD 50million
Bilpham Agicultural Enterprise USD 2 million
Red Sea Cooperation USD 5 million
New Sudan Insurance USD 1.5 million
Imatong Gas USD 5.5 Million
Nile Commercial Bank USD 6 million
Citizen Newspaper USD 50,000
Payii roads and bridges USD 250,000 but withdrawn by the Party.
Ebony TV USD 400,000 –the Company is at the verge of collapse
25% of the shares in Fattouche Industrial Holdings, and
25% of the shares in Vivacell
USD 30 million was unilaterally transferred without the approval of the SPLM leadership under the directives of Cde Pa’gan directly from the Ministry of Finance without crediting it to the SPLM Account. The money was directly transferred to Yenura without clear particulars of the company and guarantees. The Company was reportedly liquidated 15 days after the transfer of the money despite the fact that there was no liquidation documents produced.
The Loan Agreement for the USD 30 million was signed by Cde Peter Agoth and one Noah Samara without guarantees and without witnesses. The Loan was supposed to be recovered within 90 days from the date of receipt with an interest of 12%. There are no efforts from Cde Pa’gan or the Directorate of Investment for the recovery of the Loan and Interest.
The sub-committee which was sent to Khartoum to meet Dr. Monsour Khalid and others came back with disappointment. Yenura was liquidated hardly 15 days after transfer of the USD 30 million and one Salah Idris who was said to be guarantor is nowhere to be found and Noah Samara the owner of Yenura in America reportedly bought the World Space in Washington using the USD 30.
The Committee also met Tedd Dagne here in Juba and like Dr. Monsour Khalid he discouraged the team from going to America. The Sub-committee decided not to incur more expenses on this futile attempt. It is believed that the USD 30 million got its way back to Sudan.
Bilpham Agricultural Enterprises
Bilpham Agricultural Enterprise (BAE) was established by the SPLM in 2007 with the initial Capital of SDG 4 million in Renk County Upper Nile State with the objective to generate income to the Party.
Due to some .managerial problems the project came to complete standstill in 2012. The proceeds-of the sales from 2008 to 2011 alleged to have been deposited into Accounts in Ivory Bank and other Banks in Renk and Khartoum are as per indicated in the audit report.
The Enterprise has assets comprising of three (3) tractors with their accessories and two (2) Crushers and one (1) hardtop land crusher. These assets are seasonally hired and the revenue generated is used for the running costs and payment of the salaries of the staff on the ground. (Copy of the report attached).
Red Sea Corporation
According to the report of the directorate of Finance and Investment, the SPLM invested the sum of USD 5 million in 2007. Last year a delegation from the SPLM General Secretariat visited Eritrea and found out that the money has generated profit of USD 1 million only in six years. And the delegation directed that the sum $ 4 million be repatriated to south Sudan meanwhile $ 2 million is to be left for the operation of the Company. This Company is better because it has generated USD 1 million. However, the profit margin compared to the timeframe implies that the Company has not been operating well. It is worth mentioning that the $ 4 million is yet to be repatriated.
The Committee had planned to send a fact finding sub-committee to Eritrea but it was prudent not to travel again there for the second time, it is worth mentioning that the committee was not availed any contractual documents pertaining to the partnership between the SPLM and the Red Sea Cooperation.
New Sudan Insurance
This is the only promising investment for the SPLM. The SPLM owns 51% and the Eritreans own 49% of the shares and it is managed by an Eritrean. The dividends are being re-invested to enable the company expand its business. Part of the investigation team visited the head office of the company and they were satisfied with the report presented by the manager.
lmatong Gas Company-
lmatong Gas was among the first investments established in South Sudan in partnership with tile SPLM’. Despite the fact that it was well and· fully funded, supported and-protected by the SPLM, poor management and presence of other strong competitors in the market led to its decline and the Company is sliding towards bankruptcy and liquidation. The Committee sent a fact finding mission to the headquarters of lmatong Gas where it was briefed by the General Manager of the Company. The team found out that the company had invested in fixed assets and with the change of the management and injections of more funds; the company can revive and take lead in this sector.
Nile Commercial Bank
In accordance-with the findings-of a fact finding sub-committee and the statements of the General manager and’ documents obtained, the SPLM had invested the sum of$ 6 million out of which $ 1 million was in form of shares and the sum of $5 million was a. loan with no clear terms including the interest rate. The Nile Commercial Bank started-very well and took lead-in the banking_ sector during the first half of the Interim Period after which it begun gradually to decline due to poor management i.e. unnecessary expansion, granting loans without gu·arantees and its, inability to withstand· competition with other banks. However, with the new management the NCB is gradually recovering.
The Citizen Newspaper
According to Cde Pa’gan, the Secretary for Finance and Cde Bal Makueng the Secretary for Information’ in-the Southern Sector, the SPLM had invested the sum of $50,000 in form of shares in the Citizen newspaper. The Newspaper turned against the SPLM and its leadership and as such the secretariat withdrew it shares from the venture, and terminated the-partnership.
Printing of ID Cards
This project was intended to be an ongoing project the SPLM invested the Sum of $ 1,570,000 for purchase of machines for production of ID cards but due to mismanagement of the funds and the machines the whole project collapsed without even recovering and paying back the start-up capital; The SPLM needs to reactivate this project and improve the-management as if is very essential for provision of membership ID cards:
Payii Roads and Bridges Co. Ltd
The sum of $ 250,000 was invested in form of shares in Payii Roads and Bridges Co. Ltd. The shares were withdrawn by the General Secretariat and partnership terminated due to managerial crisis.
Bells of Freedom
This was a Newspaper established and managed by the SPLM Northern Sector with the capital of $ 750,000. After independence and disengagement of the SPLM North, coupled with the hostile policies and attitude of Khartoum, the Newspaper was shut down and all its assets confiscated by the Sudan government.
Ebony Television was established with capital of $ 400,000 and it is 100% owned by the SPLM. It has been on and off since its establishment and like the other SPLM investments, it could not function well due to poor management. This project needs to be reactivated as it could be used by the SPLM as a vital tool for its political outreach programs.
FATTOUCHE INVESTMENTS GROUP HOLDINGS LTD .
According to the Frame Work Agreement signed between Fattouche Investments Group Holdings Ltd and the SPLM represented by Wawat Securities, Article (2) sub. Article (2.2) states that the Party’s share in the Holdings shall be divided as follows
The first party and any of its subsidiaries affiliates or related companies: 75°/o (seventy five percent)
The second Party through Wawat Securities (a company incorporated in the Territory, representing the investment arm of the
Second Party) shall own 25o/o of the shares in the following identified subsidiaries (Twenty Five Percent):-
I. Telecommunication/Viva Cell
II. Quarries, crushers and cimenteries,
III. Minning and oil sectors
IV. Construction, general trading, transportation
V. Food processing plants, hotels, gambling, tourism and entertainment, and
VI. Development and Reconstruction of the Airport zone
From the above mentioned subsidiaries of investment, Telecommunication/ Viva Cell and Quarries, crushers and cemeteries are the only schemes that have become operational while the other ventures have not been operationalized yet.
Viva Cell was incorporated in 2008 under Network of the World (NOW) a license owned by the SPLM and according to the agreement the license was in consideration for the SPLM 25°/o shares and Fattouche was to pay the SPLM $ 7.5Million out of which SPLM was paid $1.5 Million in monthly instalments. The balance of the $6million remains un paid to the SPLM by Fattouche despite the clear directives in the letter of the President of the Republic of South Sudan dated May 2nd, 2013 and the readiness exhibited by the Managing Director of Viva Cell in his letter dated January 09, 2013 (copies attached).
In addition to the license, the SPLM leased its prime land of 10,699 Square meters at a symbolic rate of 0.1 SDG currently SSP per square meter per month equivalent to SDG 1096.9 per month totaling to SDG 13, 162.8 per annum. The SPLM represented by Wawat Securities and Fattouche represented by New Tel Ltd had signed a share purchase agreement on 6/10/2007 in which the SPLM purchased 5,000 shares, and this is what is incorporated in the Memorandum and Articles of Association of Network of the World Ltd (NOW) incorporated on the 24th January 2008.
From the above, the 5,000 shares in the Memorandum and Articles of Association it is only one percent (1%) of the shares, whereas, the Frame Agreement signed between Fattouche and Cde Pagan gave the SPLM 25°/o. There are no clear provisions that the nominal lease of the land, the protection and other services provided to Fattouche Investments Group Holdings Ltd do constitute the 25°/o of the Shares. It’s not also clear whether the 5,000 shares of the SPLM are fully paid. Since the signing of the agreement it is not clear whether the dividends accrued are re-invested or not, it is not also clear whether Viva Cell has been paying the annual rent of the leased land to the SPLM.
In response to the queries raised by the Committee, Mr. Fattouche stated that the Fattouche Group has so far incurred up to $134 million as debts noting that such debts will be close to $180 million by the end of 2013 as a result of the expansion program under implementation within 2013. It is clear that no dividends can be distributed before the repayment of the outstanding debts, including those to the financing shareholders but it is not clarified who are those financial shareholders.
However, Pierre Fattouche alleged that due to the failure of the SPLM to meet its obligations which are to:
Support the Company.
Ensure that the terms of the license signed will be implemented including the exclusivity and facilitations granted.
Assist the company in developing its operations: award of a national access code, rental of sites, availability of frequencies free of interference, interconnection with the other operators before commercial service,
Ensure the delivery of a plot on which the Headquarters of the company will be constructed, and this was provided except that it is partially occupied by SPLM offices.
As result of these failures and in order to operationalize the company, Fattouche paid the sum of$ 12.5 million to Khartoum. He believes that instead of the SPLM to get the $6million, the SPLM should reimburse him for that. Despite the above Mr. Fattouche expressed his readiness to re-negotiate the terms of the partnership with the SPLM.
Fattouche Industrial Holdings Ltd.
According to the Frame Work Agreement signed on the 13th August, 2007 by and between Fattouche Investments Group Holdings Ltd represented by its Director Mr. Pierre Fattouche of which Fattouche Industrial Holding is a subsidiary and the Sudan People Liberation Movement (SPLM)- Resource Management Committee is a partner represented by Mr. Pa’gan Amum. The share of the SPLM is 25°/o of Fattouche Investments Group Holding Ltd including fattouche Industrial Holdings.
Mr. Fattouche alleged that the 12% is only payable from the profits of the projects secured for any subsidiary of the Fattouche Industrial Holdings by the SPLM. The Committee did not get any clear information from the SPLM on this matter; this is attributed to the poor draftsmanship of the Agreements and lack of follow up of such issues by the General Secretariat.
In conclusion Mr. Pierre Fattouche informed the Committee that he has notified the SPLM that the frame Work Agreement of the 13th August, 2007 is frustrated and no longer binding, except for Viva Cell the only partnership that effectively came to being and took off.
OTHER SPLM PROJECTS
(a) SPLM Freedom Plaza
Through a single sourcing, the SPLM signed a contract with the Architect Engineer Peter Marino who sub-contracted a Kenyan Company known as TRAX Constructions Ltd for the sum of original contract $1,600,000 and later on revised after inclusion of basement to the sum of $2,400,000. The project started on 13/12/2006. And stopped in 2008 and upon evaluation by engineer Majok Out the structure was found to be defective and recommended its demolition. The building was demolished and new contract was signed for the sum of $20 million payable by the Chinese from Government of South Sudan loan chargeable against the SPLM Pre Interim funds with the Ministry of Finance. The money is not yet received and so the project is at halt.
(b) SPLM Plots/Land in Juba
The SPLM owns five (5) plots in Juba out of which one piece of land was to be used for the construction of the proposed Freedom Plaza the other four plots are:
I. Former National Secretariat office bought by the SPLM but The building was destroyed by fire and it needs reconstruction.
II. The current residence of the Secretary General where Cde Pa’gan is residing was purchased for the sum of SSP 2.4million
III. The New residence of the Secretary General granted by the Central Equatoria State Government. Even though the house was in good condition and renovated twice by the Government of South Sudan, Cde Pa’gan decided to demolish the whole structure and used the sum of SSP 3 million for the construction of his new residence. Due to lack of SPLM office space for the leadership of the Party, this house is now converted into an SPLM House.
1. A plot No. 3 block 1 Nyakuron South (Yei Road) was bought by the SPLM Secretariat for the sum of SSP 400,000. The SPLM Advocate could not process the transfer of ownership to the Party from Judiciary due to enactment of new Land law. The same was resold by the owner to another client for undisclosed amount. Based on the advice of the audit team he had to repay the money and the plot was resold to another person.
(a) Political issues
A pervading high degree of indiscipline as issues of SPLM is exposed outside its structures and organs as proven by the two filmed occasions. Even though Cde Pa’gan denied violation of the SPLM Constitution and the Interim Basic Rules and Regulations in the argument that, he was acting in good faith in defence of the SPLM and its leadership. Examining the available voice and visual recordings the Committee found that there is sufficient evidence against Cde Pa’gan to the effect that he did not only act in bad faith but acted in flagrant violation of the SPLM Constitution and agitated the public and the SPLM Constituency against the SPLM and its Leadership. In so doing Cde Pagan Amum is in violation of the following provisions of the SPLM Constitution and the SPLM Interim Basic Rules and Regulations:
i) Constitution Violations
Article 5 (7)(8)(9) of the guiding Principles of the SPLM D Article 6 (17)(19) of the aims and objectives of the SPLM
Article 8(3) when he freely expressed his views and made statements outside the official meetings of the Party
Article 9 (2)(10)(13) and, when he condoned all terms of discrimination in South Sudan and did not maintain objectivity and constructive criticism, the vision and mission of the SPLM.
Article 10 (f) when you engaged in activities that undermine the objectives and policies of the SPLM.
ii) Violations of Interim Basic Rules and Regulations
Article 4 (4 )&(6) of the guiding principles
Article 9 (1),(2),(7),(8),(9)
Article 22 (3)
Article 22 (4) Clause (b)(c)(g)(h) and (i)
Cde Pagan admitted that he had declared his intention to contest for the Chairmanship of the Party which will automatically make him the flag bearer or Presidential Candidate of the Party for Presidential Elections. He alleged that the Party was at the verge of collapse and that was what encouraged him to contest in order to rescue the Party but failed to explain why should a failed political Party and its General Secretariat be led by a successful Secretary General.
On the other hand all the Secretaries, Deputy Secretaries and other officials interviewed by the Committee in the General Secretariat disagreed with the allegations of Cde Pa’gan. The officials added that the Party has not failed instead it is the Secretary General who has failed due to his inability, weak administrative qualities, lack of clear political direction and self centred style of leadership.
In spite of political powers and finances availed to the General Secretariat activities, Cde Pa’gan lacked clear political outreach program for mobilisation, organization and recruitment of members for the SPLM membership. Unfortunately most of these funds were spent on external visits and contacts which have no connections with the Party. These have politically dislocated the Party as reflected in the reports of the many leadership teams sent to the grassroots on thanksgiving missions.
Cde Pa’gan had in his public statements and utterances, used his office, agitated and mobilised the public against the Party, its leadership and the Government. This is clearly manifested in his reaction when the Committee played the recorded video of his televised interview and public statements against the SPLM and its leadership. This made him to suddenly burst out in anger, accused the Chairperson of the Party together with the Investigation Committee of witch-hunting. He concluded that he will not cooperate with the Committee again and disrespectfully marched out and never returned. The Committee tried to persuade him to stay but to no avail.
This indiscipline was also demonstrated by his aide Cde Rasheed Ali who defiantly refused to appear before the Committee. Cde Yen Mathew the National Secretary for Information and the Official Spokesperson of the SPLM equally demonstrated high degree of indiscipline and insubordination. Consequently he was expelled.
(b) Administrative and Financial issues
The Secretary General had not been convening regular meetings in the Secretariat as per Article 23(1) of the SPLM Constitution. He had been working with his personal aides and selected Secretaries. This is clearly proven by the statements of the SPLM Secretaries and Deputy Secretaries who were interviewed by the Committee.
Cde Pa’gan failed to organise and streamline the General Secretariat before and after disengagement with the SPLM North. The SPLM General Secretariat is overstaffed with untrained personnel some of whom are not committed members of the Party. All this cost the Party huge expenditure in terms of salaries, emoluments and privileges.
Cde Pa’gan failed to secure a decent head office for the Party, it is now confirmed that the current area where the prefabricated offices is part of the lease land for Viva Cell. In spite of the fact that the SPLM was provided with huge sum of money the Secretary General failed to construct permanent offices and houses for the SPLM General Secretariat.
As the Chief administrator of the party he failed to provide clear and responsible leadership to various levels of the SPLM structures. He failed to perform his functions and duties in line with Article 22 of the SPLM Constitution 2008. This is why the SPLM at the grassroots is at the verge of collapse. Furthermore he failed to carry out effective supervision, organization, directions and guidance to the General Secretariat, the lower echelons of the party, SPLM Executive and Legislative caucuses at the National and the State levels.
In view of the above administrative revelations which culminated in flagrant violations of the SPLM Constitution and Rules as indicated, the Secretary General is responsible for all the administrative failures of the General Secretariat. Therefore he should be held accountable to the SPLM leadership.
(ii) Financial issues
The Chief Administrator of the Party Cde Pa’gan had been running the Party since 2008 without approved budget by the Political Bureau. This is clear violation of Article 69( 4) of the SPLM Constitution.
The SPLM accounts were audited only once in 2008 and not audited for the rest of the years. This is a clear violation of Article 70 of the SPLM Constitution which stipulates that the accounts of SPLM should be audited annually and that the audit report shall be submitted to the Political Bureau by the Secretary General.
In the absence of clear administrative financial guidance, Cde Pa’gan unilaterally bestowed upon himself the power to determine his salary, emoluments and privileges as well as for the Secretaries and the Deputy Secretaries, The chief administrator did not present the salary structure, emoluments and privileges to the Political Bureau for consideration in accordance with the provisions of Article 19(2) and (3) of the SPLM Constitution, 2008. Despite the acute financial stand of the Party, officials are incredibly awarded high remuneration ending in a monthly expenditure, exceeding the sum of nearly SSP 1.8 million.
All the movable and immovable assets of the Party were purchased without proper procurement procedures and no proper inventory kept. All SPLM activities i.e. elections, referendum, thanksgiving and investments were funded on adhoc bases. All these expenditures were carried out under the directives of the Chief Administrator without recourse to the Political Bureau for approval as stipulated in Article 19(3) of the SPLM Constitution.
Poor management of the General Secretariat resulted in a loss of SSP 1,827,630 as loan portfolios to staff with some of them grant three different types of loan.
On the SPLM Investments the Committee found the following:
Cde Pa’gan single handedly directed the Minister of Finance and Economic Planning to transfer the sum of$ 30 million (USD) to the dubious Yenura Pvt Co. Limited owned by Noah Samara in the United States of America. This amount was charged against SPLM Pre-Interim Period Funds, without consulting the leadership of the Party or even copying the SPLM Secretary of Finance who is in charge of Party finances. (Copies of the correspondences attached).
It is evidenced that Yenura Company was a nonexistent Company without particulars and without Articles and Memorandum of Association; it was reported that it was liquidated ISdays after receipt of the money legal liquidation documents.
The Committee is of opinion that there is a dubious and a serious game played by the Comrades involved in the process and particularly Cde Pa’gan Amum and Cde Peter Agoth. To recover this huge sum of money, the above mentioned Cde Peter Agoth and Cde Pa’gan in particular should be held accountable and responsible for the lost of this money by the SPLM.
Bilpham Agricultural Enterprise was originally a good project but unfortunately mismanaged by the general manager and his staff who failed to properly administer and account for the SSP 4 million invested and failed to account for the proceeds banked in Ivory Bank. The audit report is expected to reveal the extent of mismanagement of the Bilpham Agricultural Enterprise.
In principle, the project is good and important. It only needs a good administration that will be in a position to move the project forward. The committee recommends the revival of this important project.
The Red Sea Cooperation was established as a joint venture with the Eritreans in 2007, the value of the paid up shares by the SPLM is $5 million. It is not clear how much the Eritreans paid on their part and there is no clear agreement on the share-holding ratios and the management of the Enterprise.
According to the statements of the Secretary for Investment and the Secretary for Finance, the Company has generated $1 million only, out of which the General Secretariat has decided to repatriate$ 4 million which is not yet received leaving a balance of only$ 2 million as a capital. This raises a lot of question marks on the credibility of the cooperation since the SPLM is repatriating more than half of the capital. The fate of the project is unknown and the Committee is of opinion that this project need sserious reconsideration and review since the SPLM does not even have a representative in the senior management of the company.
The New Sudan Insurance Company Ltd is the only promising investment. It has a reliable and experienced management, the dividends are being reinvested. The company needs protection against monopolies or other foreign Companies.
lmatong Gas was among the first companies established by the SPLM in partnership with one minor shareholder. The project is almost 100°/o funded by the SPLM. The project started well but due to management crisis it begun to gradually decline and it is now at the verge of collapse and liquidation. The company had invested in assets and fully taken over by the SPLM. Change and improvement of the management, coupled with protection from other strong competitors, the company can recover and take off again in a better way.
Nile Commercial Bank: the loan and-tile Shares of SPLM in the Nile Commercial Bank are not clearly defined; there is contradiction between the SPLM and the management of the NCB. This will be clarified by the auditors. Since NCB is gradually recovering under a new management, the Committee recommends continuity of shareholding with the NCB.
Ebony Television is a 100% owned SPLM project. It has been on and off due to managerial problems and lack of supervision by the SPLM Secretariat. For the importance of this project the Committee recommends that this project be fully funded by the SPLM and new competent management is put in place.
Fattouche Investment Groups Holdings Ltd is in partnership with the SPLM having 25% shares in six sectors of which only TelecommunicationNiva Cell and Quarries/ Cimentreries, crushers are functional and the other four remaining sectors are yet to be operationalized.
In Viva Cell, the SPLM owns 25%. The Fattouch Investment Groups Holding Ltd did not pay the SPLM balance of $6 million being value of the SPLM Net Work Of the World (NOW) license. The terms of the SPLM land symbolic lease to Viva Cell are not clear and SPLM has no presence in the top management of Viva Cell.
The Board of Directors does not regularly meet. The South Sudanese employees in Viva Cell are not screened SPLM members and above all the terms of partnership between the SPLM and the Fattouche Investment Group Holdings Ltd are not clear.
The terms and conditions of partnership of SPLM with Fattouche Industrial Holdings Ltd are not clear. SPLM claims to own 25% of the shares in all Fattouche Investment Group Holdings including Fattouche Industrial Holdings Ltd. Pierre Fattouche the Chairman of the group claims that it is only 25% of the profit of any business facilitated by the SPLM for the Group, except Viva Cell.
The other SPLM Projects:
1) SPLM Freedom Plaza
The project was started in December 13th, 2006 anti was supposed to be completed by May, 5th, 2007. For reasons known to the General Secretariat the contract was terminated in January, 28th, 2008. The skeleton of Freedom Plaza continued to stand as symbol of failure by the General Secretariat. During this period, the SPLM signed another contract which could not be funded and had to be terminated.
In 2013 the SPLM developed a new design and signed a new contract for the sum of $20million to be funded through a Chinese loan. The skeleton Plaza is demolished with the objective of restarting the construction but the loan is not yet obtained.
2) The SPLM lands/plots in Juba
The SPLM owns seven plots in Juba; the first six are owned and possessed by the Party. The SPLM Advocate could not process the transfer of ownership of the seventh plot to the Party from Judiciary due to enactment of new Land law.
In Conclusion the Committee strongly recommends the following for consideration by the leadership of the Party:
1. Immediate relieve of Cde Pa’gan Amum from the position of the Secretary General of the SPLM Party and any other position held by him in the SPLM structures in accordance with the provisions of Article 27(2) of the SPLM Constitution, 2008.
2. Immediate restructuring and overhauling of the SPLM General Secretariat with the aim of reactivating the SPLM political work and mobilization and appointment of caretaker Secretary General to run the affairs of the SPLM up to the convening of the third SPLM National Convention.
(b) Administration and Finance
1. The Ministry of Finance to furnish the SPLM Chairperson with all detailed statements of accounts of the SPLM Pre- Interim Period Funds, as prompt as possible. The statement should include all the SPLM requisitions, withdrawals and balances.
2. SPLM to withdraw all Pre-Interim Period balance from the Ministry of Finance and Economic Planning and to be kept in the SPLM Account.
3. Cde Pa’gan Amum should be held accountable for the $30 Million transferred to the fictitious Yenura Company
4. Fattouche Investment Group Holdings to pay the SPLM the sum $6 million being balance of the value of NOW telecom license. This will be followed;
a) Review of all partnership agreements between the SPLM and Fattouche Investment Group Holdings Ltd.
b) SPLM is to ensure that Viva Cell is facilitated and protected.
c) SPLM is to fulfill its commitments and obligations in the partnership agreements.
5. Bllpham Agricultural Enterprises management should be changed and new administration be funded with the aim of reviving the project.
6. The SPLM to send a delegation to the Red Sea Corporation in Eritrea to renegotiate the terms and conditions of partnership.
7. The SPLM to provide protection to the New Sudan Insurance Company against monopolies and other Companies.
8. The SPLM to take full charge of lmatong Gas Company appoints new administration and avails the necessary funds for its revival.
9. The SPLM to fully fund the Ebony Television project and appoint a new competent management.
10. The loan Agreement between the SPLM and the Nile Commercial Bank is reviewed.
11. The SPLM to review the value of the construction of the SPLM Plaza and SPLM to distant itself from the Chinese-Government South Sudan Loan and fund the project for the construction of the Plaza from its direct resources.
12. The SPLM to acquire a bigger piece of land for the construction of the Plaza, so that it accommodates other facilities.
13. SPLM to engage competent legal firm for the recovery of plot No. 3, Block 1 Nyakuron South (Yei Road).
14. Disciplinary measures to be instituted against Cde Yen Mathew.
15. The General Secretariat directorate of Finance should recover the amounts given to staff as loans.
LIST OF THE INTERVIEWED SECRETARIES AND DEPUTY SECRETARIES OF SPLM
Name: Mabe Bosco Eluzai
Position: Deputy Secretary for Administration and Finance in charge of Investment
Name: Ayuel Monyluak Aluou,
Position: Deputy Secretary for political mobilization.
Name: Dium Cyer,
Position: Director General for LoglsSks and Procurement,
Name: Dr. Apal Adwok Amon
Position: Deputy Secretary for Finance
Name: Eprahim Modi
Position: National Financial Controller
Name: Antipas Nyok
Position: Secretary for Political Affairs and Mobilization
Name: Cde Nora Zangabeyo Position: Secretary for Social Welfare
Name: Cde Kuel Aguer Kuel
Position: On 2nd 710/2008 employed as Secretary for Finance and Economic Affairs Southern Sector
Name: Gabriel Alaak
Position: National Secretary for Finance and economic Affairs
Name: Cde Martin Mojut
Position: Secretary for Popular and Syndicated Organization
Name Peter Agoth kijok liol
Position: Deputy Secretary for Finance
Name: Henry Wani Rondyang Position: Secretary for Training Research and Planning
Name: Yen Mathew Choi Joak
Position: Secretary for Information, Culture and Communication Right from the end of 2008.
Name: Acuil Malith Bangol
Position: Secretary for Popular and Syndicated Organisation Southern Sector 2008
Name: Bol Makuany
Position: Secretary for information
Name: Noel Lubang Barnaba
Position: Office Manager to the SG
The Members of the Investigation Committee
Cde. James Wani Igga
Cde. Daniel Awet Akot
Cde. Mark Nyipuoch Ubong
Cde. Kuol Manyang Juuk
Cde. Michael Makuei Lueth
Cde. Laurence Korbandy
Cde. Peter Bashir Gbandi