Home | News    Thursday 27 August 2009

South Sudan rescues Nile Commercial Bank, restructures management

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August 26, 2009 (JUBA) – The Government of Southern Sudan and the Central Bank of Sudan have resolved to rescue the collapsing Nile Commercial Bank.

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Based in Southern Sudan, the Nile Commercial Bank (NCB) was the first commercial bank to be established in the region after the 2005’s Comprehensive Peace Agreement.

This will be the second attempt by the government in just over one year to rescue the bank from total collapse.

In the last cabinet meeting, it was resolved that an amount of 102 million Sudanese pounds will be availed to bring the NCB back to its feet.

Southern Sudan government through the Ministry of Finance will avail 51 million while the Central Bank is expected to pay the other half.

The bank was brought down to its knees by defaulters in their hundreds who failed to pay back overdue loans they previously borrowed in millions from the bank.

The government however resolved to restructure the bank’s management as a condition for rescuing the financial institution.

Last year, NCB nearly collapsed but survived after the government paid the bank 10 million dollars.

Weak and inexperienced management of the bank is blamed by the authority for its repeated failures.

As a private financial institution with the right to sue or be sued, NCB is left to decide what to do legally with the defaulters.

The Governor of the Bank of Southern Sudan (BoSS), the branch of the Khartoum-based Central Bank, had warned that he would publish the names of defaulters if they fail to repay the money.

Among the defaulters are said to be officials of the government, mostly civil servants.

Last April, Sudan Tribune disclosed that the NCB had run out of cash and since then Sudan Tribune journalist Isaac Vuni, who wrote the paper, had been arrested three times.

Under pressure from unidentified southern Sudan officials, the source of the paper – Mrs. Marta Michya, the Assembly branch manager in Juba, who is now suing Vuni – said she had never spoken with him or provided documents to the Sudan Tribune journalist.

(ST)

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  • 27 August 2009 07:24, by oshay

    While Southerners starve and UN warns of famine in the South, the SPLM decides to save a bank......... how typical.

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    • 27 August 2009 08:19, by Sunlight

      This is a complete rubbish and another blunder by the so called SPLM government. It clearly demonstrates how poor is GOSS planning capacity.

      NCB has collapsed because there are defaulters among whom are top SPLM officials who have taken loans and refused to pay back. The so called GOSS council of ministers could have directed its minister of legal affairs to prescute the defaulters instead of injecting our money into a failed project, particularly at the time when the region is on the verge of real starvation.

      This is just another game of corruption being initiated. The money will disappear again in the throats of the same SPLM thieves while poor SPLM supporters on this website are still beating the old useless drum of being the best option for our people. SPLM is a disaster, our very survival is being risked by this visionless corrupted party...

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      • 27 August 2009 09:01, by Mabior Ayuen Dengajok

        Guys there is no such system that distributes money to it people, even United States does not conduct such step, and the reason for recovering South Sudan’s banking system is an ideal of supporting future investment.

        Some businesses people can benefit from it by either invest their money or get loans in the bank so they can easily run their business and locals get employed , look! How good is that?

        The Goss government is doing very best by making possible recovery of the Nile Commercial Bank.

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    • 27 August 2009 09:51, by Mike Romeo

      Oshai or whatever your name is,

      Would you just shoot-up rather then barking here in the name of SPLM.
      Never reiterate your nonsense comment are unwelcome here pliz.
      Saving a bank from down fall is also an alternative of reducing the so called famine in the South. Don’t you know the money bank saving were from People you said are starving?? What pain you when Government of South Sudan reinstates its bank back to life??
      This has nothing to blame the future thinkers rather then appreciating the work well done.
      Bravo South Sudan for rescuing NCB.

      Mike Romeo

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    • 27 August 2009 10:05, by Lokang

      Hi Oh-shit,

      To fully understand the back-bone of country’s economical strength, you might need to take course in Economy if you haven’t studied it before. Otherwise you will never come to understand it.

      You may keep your wacky-washy mind to vomit nonesense since you got non to say Mr.

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    • 27 August 2009 13:01, by Joseph Dut Gak

      What is next ?

      What is next for those who had lost their money since the bank
      has got no money ? what is the way forward now .

      Dut

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    • 27 August 2009 23:37, by Mkogan Wak

      Dont be suprise,for the GOSS to rescuse Nile Commercial Bank, it was established by GOSS and they have right to save it,to be looting in the future.

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    • 19 January 2013 12:10, by chalbhtho

      Wow! I really appreciate the thought that you put into this article. This topic has been something I have been looking into for a few hours and your post is one of the best I have read.
      Dale

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  • 27 August 2009 09:02, by BUSTA 2

    I can’t believe the Government of South Sudna!!

    South Sudan is really very weak as Gaddaff said. there are many things which South Sudan should be put in plan than waisting money on what they themselves ate.

    I am sugesting that those who were working there before should be sacked because they were unqualify staff or else the same thing will happen

    Brother in Christ,

    Busta 2

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  • 27 August 2009 09:11, by Biliu

    No leniency with corruption, I agree and urge the Nile Commercial Bank to take legal actions against the defaulters, wither top officials or civil servants, Nile Bank, as a commercial Bank should resort to collaterals to secure loans remuneration.

    On the other hand, Nile Bank is not the only bank in Sudan on verge of collapse, NB and many others are facing the same catastrophe, not saving but correcting the banking institutions would put an end to the fluctuating performance of Sudan’s banks, corruption is not the main problem since those are commercial banks, but lack of experience in the commercial banks in Sudan is the main cause of their hardships.

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    • 27 August 2009 11:48, by Amule Alex

      To me as a share holder of Nile Commercial Bank i oly blame Management of the Bank, Becouse they can not give out million of dollar as a loan to peaple without looking at the capacity of the person collateralal security of the person, so my advice to the Management system and the GOSS to take action on those don’t pay back the loan they have borrowed, thanks the GOSS to rescue the Bank back to it’s toes.
      by Amule Alex

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  • 27 August 2009 11:20, by Brooke Obe

    GOSS and BOSS should listen to the news now happening in the Nigerian banking sector. Although known as the leader of African corruption, Nigeria is now talking small but important steps towards sanity. The central Bank in Nigeria is arresting, yes, arresting, the CEOs and loan defaulters in that country. Stop harrassing Vuni, arrest the CEO of NCB and bring the big wig defaulters to book. GOSS is now becoming a by-word for corruption. Those who understand world politics in the cabinet should help those who do not.

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  • 27 August 2009 11:31, by Leo Abi

    I would really want to appreciate very much the work of the Governement of Southern Sudan. The Gov’t has a brillian ideas, but the problem comes in the follow up of every initiative they have. Now some body stands up and "say the bank is a private institution that can sue and be sued, if they want, they can sue the individuals concered" this sounds so ockwards in my ears. I think the first step should be for the bank, to so show that the next time they will deal with such people in such a way. They must prove that they have a system by bringing such people into justice, before any funding is injected into the business. What if the same thing happens, since nobody follows up those who can’t pay back the loans they have taken?

    Unless the Government of Southern Sudan Introduces a rightful system of follow up including the other government departments, nothing good will come out of the Gov’t.

    I remain one the Southern Patriot with a vision for Southern Sudan, and SPLM member moreover

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  • 27 August 2009 11:47, by Moses Deng Malual

    Well,the decision taken by GoSS and the Central Bank of Sudan to rescue the collapsing NCB is very crucial.

    Process re-engineering is extremely important rather than re-structuring.

    Have a nice DAY.

    Dr.Moses

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  • 27 August 2009 11:47, by Dekery

    This NCB Lady who is sueing the Sudan tribune jornalist is a big rabbish lady and nymphomaniac who have used our money for those acts.

    Soon the shareholders will sue her too.

    I blamed the central Bank and southern Bank for reviving this bank. We have many people stuffing of hunger, why not used that amount for this purpose.

    This is the corruption by the politician but not the civil service servants as directed because they feared their names been taken to media.

    Dekery’’’

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  • 27 August 2009 12:58, by Hillary B.M.L,M

    So, was Isaac Vuni a liar? Marta Michya should drop the law case against Vuni, proofs are well known, Governor of BoSS said he will disclose everybody out including Government officials, what a big shame would be for those Bank’s Embezzlers, those Government officials get Salaries in Million of Pounds yet take Loan from poor newly founded Institute.
    I would be 100% happy to read their names on this Website if the Governor really is being honest to bring their names to the air.

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  • 27 August 2009 13:14, by Majak Garang

    Good news. NCB is our bank and it should not discourage southerners from keeping/accessing their money.

    The idea of giving money to the bank to restate back was good but the first thing the GOSS should have done before giving 102 Millions SP to the bank was to change the management and publicly inform clients/customers about the changes. This bank needs tough policy which should not be abused by people.

    We (southerners) including the management of the NCB have learned a lesson and we should use the lesson learned here in the management of the public resources such as income, duty taxes and many more.

    Please let’s refrain from mismanagement.

    Regards

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    • 27 August 2009 16:54, by Amule Alex

      When NCB was opened Official here in juba By prisedent Kiir
      the back whas said to be peaples Back that is why peaple where able to registered as share holders able to put their money in the back and the peaple are still with hope that their money is in the Back, becouse one of the charactaristic of a back is that money should be ready on demand.
      Now as the GOSS and the central Back is going to give money to NCB they should change the management system and inform or give standard finacial policies amd inform them that this money belong to those who have put mone and bought Share with the Back.

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  • 27 August 2009 17:23, by Dekery

    Dear Readers,

    The GOSS has taken a very wise decision to save the NCB from collapsing. This will resque individuals who have some money with the bank.

    The next thing GOSS should take is to arrest those who have failed to repay their Loans, try them and bring those guilty to book

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  • 28 August 2009 09:35, by Othogomoi

    WHY NOT BRINGING THE DEFUALTER TO COURT,TO PAY THAN USING PUBLIC FUNDS.

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    • 11 December 2010 09:27, by Peter Elia Kuzee

      IF IT IS THE GOVERMANT RESCUES THE NILE COMMERCIAL BANK, SORRY. THE WANTS TO STILL BIG MONEY THIS TIME.
      DOES WHO DID IT LAST TIME ARE HAVING BIG HOUSES ,LORRIES,AND HOTELS etc.
      CLOSE THAT BANK PLEASE.

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    • 11 December 2010 09:29, by Peter Elia Kuzee

      IF IT IS THE GOVERMANT RESCUES THE NILE COMMERCIAL BANK, SORRY. THE WANTS TO STILL BIG MONEY THIS TIME.
      THOSE WHO DID IT LAST TIME ARE HAVING BIG HOUSES ,LORRIES,AND HOTELS etc.
      CLOSE THAT BANK PLEASE.

      repondre message

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