Home | News    Wednesday 18 July 2012

S. Sudan: Billions lost in fake contracts, inflated payrolls

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July 17, 2012 (JUBA) - Unspecified billions of taxpayers’ money went unaccounted for in 2008, either through dubious award of contracts to unregistered companies or inflated payrolls in South Sudan government ministries and agencies, an audit report of its financial statements reveal.

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South Sudan Auditor General, Amb. Steven Wondu (photo GoRSS)

The report, which covers nine specific areas, was unveiled before lawmakers by the Auditor General on 16 July. It looks at budget execution, oil revenue, non-oil revenue, payroll expenditure, internal control and maintenance of asset registers, bank and cash accounts, operating, procurement and expenditures.

Steven Wondu, in his audit report, says budget execution and efficient cash management, in addition to ensuring that the internal control procedures relevant to the preparation and fair representation of the financial statement, is primarily the responsibility of the Ministry of Finance and Economic Planning.

"My responsibility is to express an opinion on whether the financial statements present a true and fair view of the financial position of the government on 31 December 2008 and the income and expenditure for the year then ended," partly reads the Auditor General’s report.

The document, he told lawmakers, was conducted in accordance with the International Organization of Supreme Audit Institutions (INTOSAI) standards, which reportedly demands that financial statements audited are free from material misstatement.

According to Wondu, the audit found no evidence that the Finance Ministry based its release of funds to spending agencies on approved budget lines, a revelation that makes the ministry entirely responsible for the unexplained loss of public funds.

While some institutions were cash starved, the report says, others received, on the discretion of the Ministry of Finance and Economic Planning, more funds than were legally authorised.

DURRA SAGA

The audit report cites what it describes as single source procurement, which reportedly continued in 2008, contrary to the existing Financial and Accounting Procedures Ordinance (FAPO) and the Interim Public Procurement and Disposal Regulations (IPPDR).

"These contracts were single sourced, not vetted by the Ministry of Legal Affairs and Constitutional Development (MoLACD). Payments were released on the orders of the implementing agencies even before commencement of work," the reports noted.

For instance, against a budget of SDG 2.6 billion (approx. $0.5billion) meant for Durra purchases in 2008, contracts amounting to SDG 7 billion (approx. $1.6 billion) were reportedly awarded to unregistered companies or those incapable of delivering the ordered quantities were allegedly favoured with purchase orders.

"Payments made without proof of delivery amounted to SDG 37,027,800," around $8.3 billion it further adds.

In another case, according to the Auditor General, the construction of Juba-Rajaf road, estimated at SDG 13,450,407 ($3 million), was reportedly not tendered and yet a 30% down payment was allegedly made to the contractor, in complete violation of procurement procedures.

Visibly shocked lawmakers were also told how a contractor, known to the auditors, was reportedly contracted for SDG 3,791,025 on a single source basis for the construction of three warehouses for the Ministry of Health, allegedly against the objection of the Director of General Procurement.

INFLATED PAY ROLLS

According to the Auditor General, no ministry could avail complete payroll systems and related nominal rolls as required for auditing purposes, raising more eyebrows on the possible existence of “ghost” workers on government pay rolls.

A case in point, he said, was the Ministry of Health, which reportedly failed to present pay sheets for SDG 4,630,055 allegedly paid to four individuals, while the Sudan People’s Liberation Army (SPLA) Affairs Ministry reportedly fell short of providing pay rolls for 33 out of its 40 divisions.

Also implicated were the Internal Affairs Ministry, the judiciary, Ministry of Legal Affairs and Constitutional Development, Cabinet Affairs, Southern Sudan Electricity Corporation, Human Rights Commission, Southern Sudan Legislative Assembly and the Education Ministry.

"In SSLA [Southern Sudan Legislative Assembly], one employee collected two salaries for four months," the reports notes, adding that, "In MoFEP [Ministry of Finance and Economic Planning], 63 officials collected a salary without being on the nominal roll."

The Auditor General, however, maintains the onus is now on the President and the National Assembly to take further actions on the findings of the report.

(ST)

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  • 18 July 2012 13:55, by SPLA

    To South Sudanese,

    The only solution to these problems is a total regime change during next elections. We need to vote out all current South Sudan officials starting with Kiir all the way to members of parliament. Every government official, institution is implicated in the Auditer General report. Kiir is not going to punish them because he is also a part of this corrupt system.

    SPLA

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    • 18 July 2012 14:12, by Eastern

      SPLA, Your C-in-C is very afraid of touching the lions’ tail (his forer commanders now government big shots). Kiir is afraid that if he becomes too harsh on these ’boys’ they will gang up against him and push him off the ’throne’, remember he behaves like a kind of a king these days...

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    • 18 July 2012 21:29, by Ajokbil

      Dear SPLA or whatever your parent give you. Your writing made me to concur with you. Steve has done wonderful work and he need the support from the citizen of South Sudanese.
      His report left no stone unturned and that is how they have been practicing corruption, so the solution is that, they must gooooooooooooooooooooooooo

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    • 19 July 2012 04:33, by Nguetbuny de Luelpiny

      SPLA,No vote for Kiir,Riek personally 2015. They can not stand again in GoSS position. They can works in Civilian Administ next time. The Coming people must not be in the list of corrupted officials in south. As long they care for Country Law & duty. It is shamfull corrupted time for south if they do not knew it well. To avoid blood they should declare themselves not standing next time 2016.

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  • 18 July 2012 13:56, by Anti Dinka’s

    If that money where use for buying Ati aircraft and warplanes
    to our EXcellence Man/woman in Military uniform "SPLA"

    By this time they will be the best to crash Khartoum Islamist Goverment To the finish

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    • 18 July 2012 14:28, by Eastern

      Anti Dinka, the president is still contemplating giving money to Khartoum without worrying himself that his army is poorly equiped. Soldiers will be reluctant to go to the frontline with rudimentary armament in the nearest future.

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      • 18 July 2012 15:40, by Anti Dinka’s

        To Eastern,
        you’re absolutely right Eastern

        This goverment of Dinka’s import more 4 wheels landcruiser than Bullets

        They think driving A nice cars Will solve the the problems with our ultimate enemy Arabs North Sudanese!
        opposite is happening now!!
        SPLA is running out of Bullets scared to death from Donkey AL-Beshir Because of ill equipment

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    • 18 July 2012 18:02, by mohammed ali

      Anti-Dinka, is that all what you came up with ?! To purchase aircraft to crash Khartoum! What a foolish idea.You better crash these thieves first . They are wrotten thieves who created all the mess in SS, hunger, starvation, violence,mass kiling , sending innocent pple to die just to divert attention away from their robbery and henious crimes!

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  • 18 July 2012 14:03, by Eastern

    This is glaring corruption. How ca SGD 4,630,055 be paid to ONLY four people. How much is their monthly salary? The financial improprity that existed in MoFEP and the Ministry of Interior manifest themselves in Kuacjok town by way of magnificent buildings and nice bungalows in Australia, Canada, Nairobi, Nakuru, now Kisumu and Kampala. These ILL GOTTEN ASSETS NEED TO BE CONFISCATED, sold cont...

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    • 18 July 2012 14:18, by Nibs

      This wondu is indeed a nationalist, thank sir for the job well done,let’s wait for cowboy reaction.

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  • 18 July 2012 14:04, by Eastern

    This is glaring corruption. How ca SGD 4,630,055 be paid to ONLY four people. How much is their monthly salary? The financial improprity that existed in MoFEP and the Ministry of Interior manifest themselves in Kuacjok town by way of magnificent buildings and nice bungalows in Australia, Canada, Nairobi, Nakuru, now Kisumu and Kampala. These ILL GOTTEN ASSETS NEED TO BE CONFISCATED, sold cont...

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  • 18 July 2012 14:05, by okucu pa lotinokwan

    My brother Steven Wandu,you are the real general auditor, in the begining our former rebel govt officials have started doing things in darkness not knowing that the day light will come one day today you are their day light to them
    100% your auditing there is no tribolism in it,you are very pure and correct in all the statements you have given to the public God help you.

    OKUCU PA LOTINOKWAN

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  • 18 July 2012 14:42, by Meel

    well done Mr. auditor general!! this corruption was done by all who pretend to be not corrupt but make ghosts to develop their bellies when they r not women. shame to corrupt laws makers.

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  • 18 July 2012 15:09, by Eastern

    Now we can see the actual amount lost is more than the $4bn claimed by the president since the auditing process is still on going. The actual amount lost is definately bigger than the $4bn. Let the government wait for the auditing process to end before it makes any pronouncement on the matter.

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    • 18 July 2012 18:30, by mohammed ali

      Eastern,I have written that long time ago. $ 1.3 in 2005-06, $ 2.7 in 2007-2008( 1.3 + 2.7 = 4 BILLIONS) just in 2 years only.What about the other 4 years. If we say average is $ 2 Billions then in 6 years it is ( 2*6= 12 BILLIONS) 12 BILLION DOLLAR had been loooooooooooooted by the SPLA parazites, the SPLA INSECTS. Not the pple of SS, they are not insects. SPLA is INSECTS, even worst than insects

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      • 18 July 2012 18:36, by mohammed ali

        OMMER AL BASHEER stopped the war, conducted the referundum, accepted the result, respected the will of the pple of SS and delivered to them " full cream " new country , a very rich country. What a man of his word! But the thieves, the SPLA insects & parazites sucked the blood of the poor, innocent, starving and marginalized pple of SS.No oil should go through Sudan , for the sake of the pple of SS

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        • 19 July 2012 05:56, by jur_likang_a_ likan’g

          Mohammed,

          This is a South Sudan affair. Please reclaim your desert for improved agriculture. It is no longer your concern.

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          • 19 July 2012 13:31, by mohammed ali

            Jur, are you getting yur fair share of the loooted money! BN &SK are not your affairs, why your thieves interfering?!

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            • 20 July 2012 01:57, by jur_likang_a_ likan’g

              Mohammed,

              BN and Nuba land and not SK is not only a concern to the thieves but it’s a black African affair. Africans can not condone the oppression, political suppression, torture and massacre of fellow blacks at their neighbourhood. Mark my word. I would have done more if I were in the thieves position.

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    • 19 July 2012 01:25, by Loko El Pollo

      7.5 BILLIONS IS LOOTED,3.5 FOR PAYROLS AND OTHER DESCRETIONARY EXPENDITURES FOR SPLA.

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  • 18 July 2012 15:24, by MKee

    Not sure what sort of laws they are making? laws that are in book without implementation? laws that are being preached to citizens for the them to obey while those who make them don’t? laws that have some pple above them? what a mess!!!

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  • 18 July 2012 15:35, by MKee

    But the auditing team have also been sleeping. how can it took all these years without any auditing being done.If the auditing team could have been doing it job, all these irregularities could have been detected early before it reached this stage where billions is gone. To me it look like everyone in Juba just go to office for the sake of getting salaries and not to jobs.

    Auditor g. must b caref.

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  • 18 July 2012 15:40, by MKee

    South sudanese must be careful about this scandal as it could be another sudan’s front with south sudan. Beshiir might be doing politic in this scandal....

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    • 18 July 2012 15:46, by Anti Dinka’s

      MKEE
      Donkey AL-Beshir has Nothing to do with this!!

      this is South/South internal Dinka’s Corruption

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  • 18 July 2012 16:49, by Nhomlau Nhomlau

    When did u guys realise this messingup of south sudan money?
    Is’t yesterday or today?

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  • 18 July 2012 19:01, by Iduol Ahang Beny

    In my opinion, the two greatest achievements of the first year of Independence are: 1. these audit reports; 2. the fact that students all over South Sudan still want to learn despite all the obstacles thrown in their way.

    These audit reports should be posted online in their entirety and the presentations the Auditor General makes to Parliament should be televised.

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    • 19 July 2012 01:22, by Matiop Panchol

      I agree with you 100% brother! We are on the right track but the government officials must learn to be more transparent and accountable.

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  • 19 July 2012 00:44, by Mayar

    Guys, this audit report is nothing to all those corrupted official, it doesn’t ring bell to them neither will it stop them from looting public money. Right now as we speak, thousand of SSD pounds are going to their pocket before you hit another keystroke. Wait until you see someone lockup, than you will celebrate, that is when we have to know that the justice is been serve.

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  • 19 July 2012 01:10, by Matiop Panchol

    Very authentic! Excellent job Mr. Wondu. You have just brought to light what everyone knew: billions of dollars were lost because of weak institutions.

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  • 19 July 2012 04:42, by 4Justice

    When a Village Idiot Becomes a Leader, disaster after disaster after disaster disaster after disaster after disaster disaster after disaster after disaster disaster after disaster after disaster disaster after disaster after disaster disaster after disaster after disaster

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  • 19 July 2012 04:45, by jur_likang_a_ likan’g

    To Mr Wondu, the blood of our kins and kith went for a purpose which is yet to be fulfilled by the patriots of the land. Juba 1965 and 1992,Jabellein, Babanusa, Malakal, Wau massacres should be for a purpose that the greed and despots are exploiting because they buid institutions for nothing other than to betray the people of South Sudan. Sorry Kiir and your henchmen!!

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  • 19 July 2012 05:35, by 4Justice

    Idolatry most times involves the worship of evil spirits. 1 Corinthians 10:19-20 makes it clear that sacrifices offered to idols are offered to demons... most African clans have spirits they worship. These spirits may be represented by figures of certain animals or objects.

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  • 19 July 2012 06:21, by 4Justice

    For instance the common practice of sacrificing a bull and then a person jumps over it may appear harmless, is
    unmistakable sacrifice to demon spirits and constitutes witchcraft and sorcery. Such practices have profound ramifications, death, disease, greed, looting, killing, stealing, hatred, poverty unbelievable suffering.

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  • 19 July 2012 07:27, by 4Justice

    Primitive pagan cultures throughout history and on every continent subscribed to some form of body modification or mutilation, usually involving tattoos and/or body piercing. In most cases, the practice was a part of demon worship. Ye shall not make any cuttings in your flesh for the dead, nor print any marks upon you: I am the LORD. (Leviticus 19:28)

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  • 19 July 2012 07:37, by 4Justice

    UNDERSTANDING THE SPIRITUAL REALM

    Things we do in the earth in the natural can cause a reaction in the spirit world. Believers must know that when involved in activities on earth that agree with the kingdom of darkness, they will reap spiritual consequences. Such demonic activities also include the marking and piercing of our bodies since God said that it is wrong.

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    • 19 July 2012 08:00, by 4Justice

      The letting of blood and body modification have always been associated with pagan worship and witchcraft. Pagans and Christians alike know there is power in the blood. (The Dark Side of Tattoos,” pp. 44-45; Williams M. Sudduth, Sr.)

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  • 19 July 2012 11:08, by Mr Equal

    Iam so sorry.I would have had voted for persident Kirr last time. This time 100% my vote goes to Salva Kirr. It is my turn and those who did not vote for him last time. excellent job,well done SPLM party. we will vote for you for one more term persident. "What a great job."

    repondre message

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