“According to the presidential press unit, President Salva Kiir discussed plans to strengthen the business relations between South Sudan and the Kingdom of Bahrain. “The delegation expressed interest to reduce Country’s outstanding debt by consolidating and paying down loans with energy resources, while strengthening energy stability with additional focus on planning initiatives to improve public health, and other areas of mutual importance to South Sudan,” reads the statement” (Alhadi Awari – ‘Bahrain tycoons reportedly willing to clear South Sudan debts’ 17.06.2022, Eye Radio).
There are simple facts to why President Salva Kiir Mayardit was so happy after the visit of the delegation of Bahrain businessmen. The debt and lack of services was already in the year stifled by World Bank and International Monetary Funds (IMF). That’s because the Revitalized Transitional Government of National Unity (R-TGoNU) hadn’t complied and implemented the financial principals of the R-ARCSS.
It was only in May 2022 that the IMF and WB blocked the access to more loans to the Government of South Sudan. That’s because of it’s financial dealings and lack of transparency. Which in consideration to the lack of implementation of the R-ARCSS too. Therefore, those deals and oil-futures that was already sold secretive and wheeler-deal operations aren’t securing the stability of the Republic.
However, the government has now found a new source of funds, instead of the WB and IMF. The Bahrain businessmen and companies are coming in instead. They are coming with strings and the future oil earnings is traded off yet again. However, to another company to shield of the old debts. They are getting capital to pay off debts, by selling the oil production to Bahrain. This is the gist of things and that will most likely further the option for a healthy profits of the state. Since, they are selling of the future and trading the petroleum before the on-set of tomorrow is to begin with.
Just read the previous deals… this Bahrain will be no different…
Here is quotes from the UN Experts Report of April 2022:
“The Panel also identified efforts by the Office of the President to accrue additional oil-backed debt to finance contracts awarded to favoured businessmen” (UN Experts Report – ‘S/2022/359’ April 2022).
“The Panel confirmed that Amuk for Trading and Investment was ultimately controlled by Kur Ajing Ater, a prominent South Sudanese businessman. In a previous report (S/2019/301), the Panel described how another company controlled by Kur Ajing Ater, Lou for Trading and Investment, had been awarded similarly outsized procurement contracts by the South Sudan People’s Defence Forces, including for food “(…) “87. The Office of the President played a prominent role in the agreement, including the President himself, his National Security Adviser and other senior staff, several of whom had been present at the signing of the deal in Dubai, United Arab Emirates. In confidential meeting minutes from a review of the 2018 contracts with Kur Ajing Ater, a senior South Sudan People’s Defence Forces official complained that “there are irregularities in this contract”, but that “the decision was from higher authorities so we can do nothing about it”” (UN Experts Report – ‘S/2022/359’ April 2022).
President Kiir and the Office of the President has practically sold the oil-futures twice. Where favourable businessmen will profit of it. The state resources will be bound by these deals and it will be only a few men who gets the skim the profits. The rest is up to businesses to be able to find markets for the oil, which in this day and age shouldn’t be to hard. The needs for oil is vast and the markets needs it. So, the state has certainly traded away the future. First it did so by generating the debt by selling the future oil earnings and now selling new oil to another company to pay for the old debt. That’s how to deplete and destroy the earnings… it is just heartbreaking, because this could be the funds and the domestic revenue to build institutions. Instead its used as a tool to enrich certain highly connected persons in Juba and around the President.
That’s why we are seeing President Kiir smiling. He has gotten a new source of income and domestic revenue. The President is able to circumvent the World Bank and International Monetary Funds. In such a manner, that his not in a haste to implement the principals of the R-ARCSS in concern to finances or oversight of the economy. Because, the Bahrain company won’t care about that. As long, as that gets the oil for the cash it pours out. In that way… he is off the hook and don’t have to pay the IMF or WB any mind.
This is what people should see. He has gotten the ability to pay off the oil futures twice. Don’t have to care about the mechanisms or the pressure from the Bretton Woods institutions. Neither does he have to open up the books, but only do inside-trading with foreign investors who covers the debt and takes export petroleum to cover it all. That’s it and it’s easy money. Very easy money… and it’s cheap too.
That’s why Kiir is grinning and smiling. He won and he didn’t even have sweat. Peace.