Jonglei State Minister for finance clarifies controversy over 27 million lost money
3 min readBy Mach Samuel Peter, Bor, Jonglei state
Jonglei state minister for finance Hon. James Akech Yen being sworn into office on January 3, 2017 picture by Mach Samuel
January 20, 2017 (SSB) — The minister for finance and economic planning of Jonglei state government Hon. James Akech Yen Alier has clarifies the controversy around 27 million SSP allegedly borrowed from commercial banks.
11millions SSP was borrowed from commercial banks in form of overdraft to close monthly salary gap. The salary gap was created by 28 states. Jonglei state budget was distributed equally to the three states of Bieh, Fangak and Jonglei state meanwhile their workforce is not the same. Jonglei state has a workforce of 5,300 meanwhile Bieh and Fangak states have 1,200 and 800 workforce respectively.
Jonglei state government resorted to overdraft to pay all the employees and to keep the government institutions operational. 2 Million Has been refunded. The state has signed a Memorandum of Understanding with commercial banks to pay 1million monthly to cover the balance of 9 million SSP.
16 million was inherited from the former government of Jonglei state headed by John Kong Nyuon which the parliament claimed to have not approved as law requires. The reality is that there is liability claimed against the government because people apply for assistant, car maintenance, construction and project proposal which were approved years ago but they remain in the record as liabilities over the years.
The state Minister of Finance, James Akech Yen Alier, was summoned before the state assembly over the matter after one day in office. A Specialized finance committee at Jonglei State Legislative Assembly is investigating the directors at the ministry of finance into how the state spent a 27-million pound loan.
“27 million most of this are liabilities that are not even obligations to be paid but the loan is an accumulation of overdraft because after the division of Jonglei into three states. There was a man power estimated at 7,000 when it was divided into three states Jonglei remain with 5,300. The formula for the distribution of salary equally instead of LPC caused the salary gap, Hon. Akech Yen explained to the media in his office.
The laws of South Sudan prohibited state government to borrow from commercial banks. The overdraft is 9 million SSP and the government of Jonglei state continues to take overdraft to-date closes the salary gap.
The minister of finance was one day old in office when he was summoned by Jonglei state legislative assembly to explain how the 27 million was borrowed without the concern of the peoples’ representative.
This piece was written by Mach Samuel reachable via email machsamuelpeter@gmail.com
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Explanation is inadequate. The bank which is dealing with Jonglei government since 2013 is a rogue bank and we all know it. It is going to fleece more if relationship is not severed right away.