Home | News    Friday 26 October 2012

South Sudan denies austerity measures have cut salaries


October 25, 2012 (JUBA) - South Sudan’s Ministry of Finance and Economic Planning on Thursday broke its silence over confusion stemming from allegations that the austerity measures have led to salaries of state employees have been reduced.

Following an dispute with Sudan over oil transit fees South Sudan was forced to reduce its expenditure after it stopped its 350,000 barrels a day production depriving the 15-month-old country of 98% of its income. South Sudan accused Sudan of confiscating oil entitlements worth about US$815m.

Despite the huge drop in revenues, the government promised that an austerity programme would not effect the salaries of civil servants, police, soldiers and other government employees.

Some of South Sudan’s ten state governments have cut salaries of their employees blaming the oil-dispute-induced austerity measures.

In Western Bahr el Ghazal, state employees refused to receive salaries for the months of August and September in a protest to 50% cut in their salaries. State officials argued that the cut was due to austerity measures and allocation of the state budget based on the contentious 2008 census results.

Unity State’s government introduced a 25% reduction in salaries for all civil servants earlier this month.

In Lakes State members of police in Rumbek Central County shot a Police Inspector in the arm after he announced that they would receive a salary cut.

But the central government in Juba has dismissed claims that the actions taken by state government’s including Western Bahr el Ghazal were related to the austerity measures.

The Ministry said that reductions were made in housing allowances, block transfers and reduction of government spending on projects rather than on staff salaries.

In a statement the Ministry of Finance said:

“This is to inform the public in general and the civil servants in particular all over the Republic of South Sudan that the Ministry of Finance and Economic Planning has not directed any cut in the basic salaries of government employees whether at the State or National level. Any State authority that cuts the salaries/wages of its workers is not implementing the policy of the National Government. It has nothing to do with the austerity measures undertaken by the National Ministry of Finance and Economic Planning. Of course States have competence to determine their salary and staffing levels”.

The statement, which carries signature of Abraham Diing Akoi, an economic policy and media relations official explained that the austerity measures reduce housing allowances by 50% but were applicable only at the central level because state civil servants do not receive housing allowances.

“This will not affect the states even if they opt to follow National Government policy since there would be no housing allowance to deduct. Conditional salary transfers to the States were not reduced except for the elimination of job specific allowances. Block grants to States were reduced by 25%. This was significantly less than the reduction in the National Government budget of 35%. States are free to use their block grants in the way they want.”

The two countries, under the facilitation of the African Union High Level Implementation Panel reached a deal in August, which could see the young nation pay US$9.10 for every barrel of oil produced in Upper Nile and $11.00 for every barrel produced in Unity State. In addition Juba also offered $3 billion as a transitional financial assistance to Sudan.

Under a Cooperation Agreement on nine post-independence issues signed on September 27, South Sudan will pay between $9.10 and $11 a barrel to export its crude through the north. Juba will also pay $3.08 billion to help Sudan overcome the loss of three quarters of oil production due to southern secession.

South Sudan is expected to resume exports in two or three months.


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  • 26 October 2012 07:11, by Mapuor

    Governors of Western Bhar El Gazal and Unity State should understand that basic salary was not affected by austerity measures,its only capital and Operational cost that are affected.States do not have house allowances.Stop cheating your people who will elect you in two years time.Opposition will take advantage of your poor governance in the two states.

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    • 14 January 2013 11:17, by nagnaailo

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      envy the harvest of vegetables

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    • 15 January 2013 10:23, by orkebtaens

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  • 26 October 2012 07:41, by George Bol

    Why this clarification took that long? Here are example of alliances; spending money for huge delegation to go abroad, paying for the rent for the paid officials, proving fuel to a vehicle own by the paid official,providing private dinner budget for official who get pay check from gov,t. Someone must used his/her salaries for all the above except some cases of few delegation to go abroad fr missio

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  • 26 October 2012 07:45, by George Bol

    and not like want some official desire to go abroad for medical treatment in the name of delegating. There some out there who are double standard-and they are the one that cause poverty because they are depriving the innocent people.
    See! where did those states hear these kind of cuts?
    Confusing the population is what make the citizens the victim.
    For me, we should be keen and be inquisitive. Thks

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    • 26 October 2012 08:19, by Boyone

      Minister of finance is one to blame, there is no reason he maintained silence for a long time until today to make this clarification. Of course it makes sense this animals are freaking out for lose t their allowances and they are on the edge of losing fancy life so they make turn quickly to steal from the poor to fill the gape.

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      • 26 October 2012 08:20, by Boyone

        Shame on them, it’s ethical and not parotitic to hurt the very poor people who can barely make a living on unpaid salary to feet their family. I think will be stupid and shame for citizen for those states to elect those corrupted idiot incoming election. It‘s time to kick them out of the government and elect new fresh intellectual people to lead the nation.

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        • 26 October 2012 08:32, by Boyone

          The option is to get ride of them, keeping them mean no progress and no development at all. I say 7 yrs of corruptions is enough; we needs people who careless for their stomach and care more for the future of the country. Brothers and sisters, 2015 is in the corner and we needs to stop depending corrupted leaders just because they are from our community or relative.

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          • 26 October 2012 08:35, by Boyone

            think twice of that because the war we fought here in the website a lot it has something to do with community vs community.

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            • 26 October 2012 15:25, by Ruach

              They don’t even know the meaning of Austerity or maybe they are corrupting!

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  • 26 October 2012 16:07, by Whortti Bor Manza

    Big liers and super thieves. South Sudan is already a failed state. Ministers are busy enmassing money by creating external trips. Soon the minister of finance will quit mysteriously. This is a proven fact that South Sudanese cannot govern themselves. may the curse of the almighty God befallen Salva Kiir and his cohorts.

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    I dont suppose Ive read anything like this before. So nice to find somebody with some original thoughts on this subject. realy thank youmadeira plastica concessionaria kia for starting this up. this website is something that is needed on the web, someone with a little originality. useful job for bring

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    Chandra believes.led corn lights,led light bulbs Energy-saving, intelligence, human nature and plasticity of words such as these may depict led street light lighting experience,<stron

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