Former minister, Salvatore mortgaged fifteen million barrels of crude oil for $400 million to Afreximbank
Former ministers sold fifteen million barrels of crude oil for $400 million to Afreximbank, according to a document from the Ministry of Finance.
The document was signed by former finance minister Salvatore Garang Mabiordit on October 10th, 2019.
Trinity Energy Limited has been appointed as the authorized tanker to deliver South Sudan’s crude oil to the African Export-Import Bank.
They were scheduled to be lifted from December 2019 to July 2023, according to the deal.
Approximately five percent of Dar Blend crude oil is in each cargo.
Dar Blend is a heavy, acidic crude produced in South Sudan’s Upper Nile State from Block 3 and Block 7.
Trinity Energy Limited was to be handed the lifting of crude oil by the Ministry of Petroleum.
Agak Achuil, minister of finance in Juba last week, said that former minister Salvatore spent millions.
In a press conference in Juba last week, Achuil, who told reporters that $334 million had been spent before he could come in, said, “That money was spent by Athian and Salvatore before I came in.”.
225 million US dollars was the other money. It was the money that was spent, and they [WB, IMF] are still waiting for the audit.”
President Salva Kiir fired Salvatore Garang, who signed the deal, in September 2020 and replaced him with Athian Diing Athian.
A committee created to manage the economic crisis recommended sacking some officials of revenue-generating institutions because of corruption.
In June 2019, the International Monetary Fund said South Sudan’s habit of taking loans from various continental and global banks -with the promise to repay them with proceeds from future oil revenues -is expensive and nontransparent.
President Salva Kiir then instructed the then Minister of Petroleum, Daniel Awou not to demand or accept oil advances before the actual sale of South Sudan’s crude oil to the international market.
He said the government should only receive money that is generated from the oil sale and not loans.
The World Bank, African Export-Import Bank, the African Development Bank, and the International Monetary Fund have been the biggest lenders to South Sudan since 2011.
In June 2020, the government secured $4.1 million to support coronavirus emergency response in South Sudan.
In August of the same year, the World Bank’s Board of Executive Directors approved a $45 million grant to improve access to basic infrastructure and strengthen community institutions.
Then in October 2020, the government of South Sudan approved a loan of $313 million from the African Export-Import Bank to fix the crumbling economy.
In February 2021, the African Development Bank signed off a $14-million grant to improve food production and boost the marketing and trade of agricultural products in South Sudan.
The following month, the International Monetary Fund approved a disbursement of $174.2 million under the Rapid Credit Facility to address coronavirus pandemic-related effects to the economy.
This totals nearly $600 million of borrowed money in just less than a year.
It was also revealed in September 2020 that the Central Bank owes commercial banks in Juba nearly $100 million.
Despite all these, the government of South Sudan is still unable to pay civil servants on time.
Last week, the Minister of Finance, Agak Achuil said the country’s oil proceeds have been sold in advance up to 2027.