30th September 2020
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Council of States grill Finance Minister over 2% oil money

Authors: Joakino Francis | Emmanuel Akile | Published: Thursday, June 20, 2019

The Council of States during a recent sitting in Juba. PHOTO: Joakino Francis/Eye Radio

The Minister of Finance and Economic Planning has asked for more time to explain to the Council of States where the money allocated to the oil-producing states goes.

Salvatore Garang Mabiordit appeared before the lower chamber of the national legislative assembly in Juba on Wednesday.

Garang was summoned by the Council of States after the chairperson of gender, peace and reconciliation – Honorable Mary Ayen Majok – had raised a motion concerning allocation of 2% and 3% percent of the oil-producing states.

Honorable Ayen had told the Council of States that the money does not reach the communities, particularly the people of Ruweng and Northern Liech States.

The Petroleum Revenue Management Act 2013 stipulates that the oil-producing states will receive 2% from the net petroleum revenue to be allocate to benefit the state development programs approved by the state legislative assembly.

It also states that the local communities in the oil-producing states will receive 3% from the net petroleum revenue – with 55% going to oil-producing counties and 45% to non-oil producing counties in the state.

When asked to explain where these monies go, Mabior said the ministry has been transferring the allocations into the state accounts, though he was not prepared to provide details:

However, people from the oil-producing villages have been complaining about lack of services despite pumping of oil in their areas.

In a recent visit by Eye Radio to oilfields, the inhabitants said in addition to lack of services such as clean drinking water, schools, and road networks, they are suffering strange diseases caused by oil pollution.

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