South Sudan’s Billion-Dollar Fraud: Salva Kiir’s Family and Military Generals Allegedly Deprive Citizens of Fuel, Food, and Medicine

The international watchdog group, The Sentry, released a bombshell investigation, named “fCash Grab,” revealing a three-year financial fraud involving President Salva Kiir’s family and military generals in South Sudan. Approximately $1 billion (€1.03 billion) was siphoned off into international shell companies, resulting in scarcity of vital necessities like fuel, food, and medicine for the citizens.

Background and Loans

This investigation focuses on the period between 2012 and 2014, when the South Sudanese central bank granted credit facility agreements worth $993 million from Qatar National Bank (QNB) and CfC Stanbic (a subsidiary of South Africa’s Standard Bank Group). These loans were meant to enable local businesses to import urgently needed goods, which would be paid back through the resumption of oil production in the country.

The Scandal and Corruption

However, according to the investigation, the funds ended up in the hands of companies with ties to ruling class members instead. The Sentry alleges that businesses with little to no proof of delivery received massive letters of credit.

Individuals Implicated

• One individual implicated in the scheme is President Kiir’s former Central Bank Governor, Kornelio Koriom, who received backed contracts totaling $14.5 million.
• Kiir later dismissed Koriom due to concerns about high inflation and the South Sudanese pound’s depreciation.

Consequences for the Citizens

A South Sudanese doctor anonymously shared the impact on people at Juba Teaching Hospital:

1. Newborns left without ventilators due to fuel shortages.
2. Infants losing their lives due to insufficient oxygen supply.

Debra LaPrevotte, the lead investigator and author of the report, shared personal stories from South Sudanese citizens who faced fuel shortages and the consequent hardships:

1. People who couldn’t get C-sections with anesthesia due to fuel shortages.
2. Long queues for gasoline on the black market at inflated prices.

Economic Analyst’s Take

Boboya James, a South Sudanese economic analyst, believes this report marks a significant step in the fight against corruption in the country:

The Sentry’s report is one that will fuel the ongoing conversation about trust and the misuse of funds in South Sudan. It is crucial for the government to take this report seriously and carry out an investigation.

Government’s Response

Information Minister Michael Makuei dismissed the report as baseless and threatened to take legal action against The Sentry:

These people have become the enemies of the government and the South Sudanese people. We will tarnish their reputation and then take them to court.

The Sentry reached out to the Ministry of Information several times but were unable to find a working email address for them.

Consequences for the Country

The investigation reveals the dire consequences of the fraudulent activities:

when hundreds of millions of dollars in goods should have arrived in markets, more than two million people went without food, hospitals and clinics had to treat patients without medicine, and fuel shortages resulted in black market price gouging.

Call for Action

The Sentry calls for government and international actions, including investigations from the FBI, Homeland Security, and correspondent banks, to prevent another tragic situation like this from recurring in South Sudan. Additionally, they advocate for promoting transparency and accountability in financial transactions.