Eng. Bernard Amour Makeny, former Managing Director of NilePet during a press conference in Juba on Dec. 6, 2023 - Credit: Eye Radio/Moses Awan

The former Managing Director of Nilepet Eng. Bernard Amour has suggested the dissolution of the state-owned firm and the establishment of a new national oil institution to be managed independently by professionals.

Eng. Amour made the remarks in Juba on Thursday, November 14, at the 4th High-Level Forum on Fiscal Devolution and Revenue Management – a key component of the Permanent Constitution-Making Process.

During his presentation at the Council of States-organized forum, Eng. Amour highlighted that the challenges plaguing the oil sector stem from politicians hiring unqualified relatives or family members.

He noted that over-employment with unqualified children of influential people continues to be a major challenge for the development of the oil sector.

“People who mess up oil sectors are politicians. Let me use Nilepet as an example. On the first day I arrived in the office as Managing Director, the manpower was over 1,900 and most of them children of ministers, uncles, and generals just for accommodation,” he said.

“NilePet can never perform better no matter what miracle you perform, because the overhead is higher than what is coming in, so, consequently, the 8% share is going for salary. They can’t do projects or contribute to national development.”

Eng. Amour warned that the Joint Operation Companies are at a critical risk of collapse.

“The worst-case scenario now, DAR is off, SPOC and GPOC are struggling, and they are now on life-support. Unless there is a political will to dissolve NilePet and form a new firm.”

“Any expert will tell you that is the only way you can have a well-performing national oil company, based on merit, job description and availability of the job. These are the problems of over-employment and disparity.”

One of the key resolutions emerging from the Fourth High-Level Forum on Revenue Management is the recommendation to dissolve Nilepet due to its inability to fulfil its mandate, coupled with inadequate capacity and overstaffing.

The forum highlighted that the current structure of Nilepet has hindered its efficiency and effectiveness in managing South Sudan’s oil resources, with the organization struggling to meet its strategic goals.

As a solution, the forum proposed the establishment of a new, more streamlined national corporate entity to replace NilePet.

According to the forum resolution, this new entity would be smaller in terms of workforce and more focused on enhancing operational efficiency and service delivery.

Key government officials present at the opening of the forum included Mary Ayen, the first deputy Speaker of the Council of States, the Minister of Finance and Planning, Dr Marial Dongrin, the Minister of Federal Affairs, Lasuba Wongo, the Governor of Upper Nile, and Eastern Equatoria—James Odhok, Louis Lobong, and the Deputy Governor of Central Equatoria, Paulino Lukudu.

Also, in attendance were the chairperson of the National Constitution Review Commission, Dr Riang Yer Zuor, a representative from Western Bahr el Ghazal State and officials from the Ruweng Administrative Area.

The forum on Fiscal Devolution and Revenue Management was organized by the Council of States in collaboration with the Ministries of Finance and Planning, and Petroleum, with support from the United Nations Mission in South Sudan (UNMISS) and the United Nations Development Programme (UNDP).