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What scrutinizing regional banks will mean to S. Sudan

Kenya's President Uhuru Kenyatta, left, Uganda's Yoweri Museveni, right, and Salva Kiir of South Sudan, centre. | The East African

Any move by the international community to scrutinize regional banks will provide the government an opportunity to recover millions of dollars stolen from the public coffers, according to an economist.

In a report released recently, sources from the European Union said they were preparing to impose sanctions in case the High Level Revitalization Forum fails.

According to the report, Kenyan and Ugandan banks would be subjected to major international scrutiny for encouraging money laundering by peace spoilers.

“It is an opportunity for the people of South Sudan and even the government and also for the president,” said Dr Lual Achuek of the Ebony Center.

“It is time whatever cloud concerning the money which have been taken from South Sudan, because the East African were suspected to be sitting over huge amount of money which left South Sudan, that it could be done discretely.”

The report by the European Union indicated that the sanctions against the spoilers could come as early as this week, when a review of the progress in the revitalization forum starts in Addis Ababa.

It said 77 banks would be required to enforce stricter control on financial transactions involving the individuals under restraint.

However, Dr Lual said the banks have policies to protect the institutions and their clients, but the peace partners can work anonymously and discreetly with the World Bank to achieve this.

In 2013, the government initiated a stolen funds recovery program with the help of the World Bank, but the process stalled due to the conflict.

The move came after President Salva Kiir in 2012 named 75 individuals who allegedly participated in the loss of 4 billion US dollars from 2005 to 2011.