South Sudan’s Shadowy Millions: The Unraveling of a Billion-Dollar Fraud Involving President Kiir’s Circle
According to a new investigative report by The Sentry titled “fCash Grab,” South Sudan’s President Salva Kiir and his inner circle of military generals are accused of siphoning off approximately $1 billion (€1.03 billion) from international bank credit lines (2012-2014). This diversion of funds has left the impoverished country’s children and communities without essentials like fuel, food, and medicine.
Impact on South Sudanese Population
The report alleges that Salva Kiir’s family and associates rerouted funds to a network of shell companies that failed to provide the promised goods and services, worsening the nation’s humanitarian crisis. Debra LaPrevotte, the report’s lead investigator and author, explains the suffering of the people:
Mothers would hand-ventilate their infants when the hospital’s generator ran out of fuel. Some surgeons operated without crucial supplies such as sutures or gloves. The situation has remained dire with frequent fuel shortages.
Economic Analysis and Consequences
Economic analyst Boboya James emphasizes the severity of the report’s findings:
It adds more fuel to the conversation about the ongoing battle against corruption in South Sudan. Those implicated should face the consequences, including serving jail terms.
Fueled by Bank Credit Facility Agreements
The controversy centers around the central bank’s credit facility agreements with Qatar National Bank (QNB) and CfC Stanbic during the period of 2012 to 2014, aiming to help local companies import vital commodities. However, the report states:
these credit lines were then turned into an opportunity for theft by corrupt officials and their associates, forcing the South Sudanese government to shoulder the financial burden.
Identified Tiers of Individuals Involved
The report identifies several individuals connected to politicians and individuals close to President Kiir involved in this scheme:
- Family members of South Sudan’s President
- Central Bank Governor Kornelio Koriom
- 13 Ugandan companies
- Denkel General Trading company
Stolen Funds and Human Cost
As a result of the scheme, over nearly $1 billion was effectively removed from the country. The report calls for action from international agencies, financial institutions, and law enforcement organizations:
Almost $1 billion effectively walked out of the country, leaving the human cost to be calculated.
The Fight against Corruption in South Sudan
Despite being the most corrupt country on Transparency International’s 2021 Corruption Perception Index for the second year in a row, the report offers recommendations to increase transparency and accountability:
- Agencies like the FBI and Homeland Security to open investigations and help recover stolen funds.
- Collaboration between international agencies and local governments to provide adequate support and resources.
- Urgent reforms to enhance transparency and accountability in government institutions and financial systems.