Agak Achuil, the minister of finance during a press conference after returning from Washington DC in the U.S. Thursday April 5, 2022 - Credit | Lou Nelson/Eye Radio

The ministry of finance has been struggling to pay civil servants because the country’s oil proceeds have been sold in advance up to 2027, the minister has disclosed.

It is not clear when the major source of the country’s revenue was sold out.

But in 2014, the government had set plans to borrow 3 billion South Sudanese pounds, about 1 billion US dollars at an official rate, from oil companies during that year’s national financial budget.

This was to cover repayments on domestic loans and previous oil advances, the government said in a budget document.

According to Finance Minister Agak Achuil, when he came in, he found that salary arrears were not paid in the months of July, August, September and October last year.

This is because he said the government sold out the oil proceeds to pay off accrued loans.

And this is making it difficult for the ministry to pay civil servant salaries on time.

“When I came, I got the July arrears not paid, August was not paid, September was not paid, October was not paid, and I came in November,” Minister Achuil explains.

“I paid July, August, September, paid October and the last two months which I paid were November and December, and now we are left with January, February and March.

“The reason why we are not paying the arrears is that the oil is going for the loans which have been taken before.

“So when you don’t have a cargo to sell or when it is given for the loan which was taken before I could come, there is no way I can stop things and say okay, give me this money, and that person will take us to the court.

“The oil money is going towards the payment of loans and paying for some of the priorities of the government.

“Now, if I was to pay this salary I have to get this in advance, somebody to give me money to come and pay this salary which are the arrears and if I want to pay, I will have to borrow, and when I borrow that means your oil is being sold in advance.

“Now, I told my people to prepare 3 months’ pay sheets for January, February and March. Where am I going to get the money, if the oil has been sold in advance up to 2027? That means that I will go to 2028, to ask somebody to give me money such that by 2028 he will be given that oil.”

Civil servants and other employees on government payroll often go for nearly 4 months without salaries.

Civil servants such as doctors, nurses, teachers, and security personnel have been living in squalid conditions since the country gained independence in 2011.

A nurse and midwife in South Sudan earn between 2,000 and 5,000 South Sudanese pounds per month, while a doctor receives 6,840 pounds a month.

A foot soldier receives roughly 1,500 pounds.

This cannot pay for their food, housing, transport, and others.

In July last year, President Kiir directed the Ministry of Finance and that of Petroleum to dedicate 5,000 barrels of crude oil per day to regularize the payment of civil servant salaries.

Kiir noted that since the government floated the South Sudanese pounds in 2015, civil servant salaries have not been adjusted.