30th September 2022
Make a Donation

Renk communities get first oil money in 7 years

Author: Obaj Okuj | Published: Wednesday, July 14, 2021

Communities in Renk County of Upper Nile State have finally received their oil share months after a reported showed that the government had been channeling their dues into individuals’ pockets.

This is the first time in 7 years that the area is getting funds from the 3 percent meant for oil-producing areas.

According to an official, they have received $190,000.

This is based on a legal formula that offers the communities of Melut, Adar, Paluoch, Maban and Renk oil proceeds.

Those in areas where oil is drilled are to receive 55 percent from the 3 percent oil revenue, while those neighboring the oil field are to receive 45 percent.

Kak Lanki Kak, head of community development in Renk County, said they were to receive $460,000 as communities neighboring the oil field.

But they only got the first installment of $190,000 from the National Ministry of Finance and Economic Planning.

“This amount is now placed in a private account for the Renk Development Committee, which will spend the amount on projects for the benefit of the local government in providing services to the communities,” Lanki told Eye Radio.

He disclosed that the funds will be directed towards improving the health and education sectors in the County.

In March 2021, a report by the Auditor General revealed that communities in oil-producing states had not received $85 million from their revenue share over the years.

People in Upper Nile and Unity states and Ruweng Administrative Area are – by law – expected to receive 2 percent and 3 percent shares.

The audit report also revealed that the 2 percent account meant for the community – and operated by the Bank of South Sudan – received $25.5 million.

But between June 2014 and December 2020, $5 million was paid off to individuals and institutions not recognized by the petroleum act.

These percentages are to go directly to oil-producing states and the communities living near oil fields, the Petroleum Revenue Management Act of 2013 stipulates.

On the 3 percent account for the oil-producing states, $60 million was wired to the central bank between 2014 and 2020.

But this money was also distributed to more than 20 individuals and private companies without clear reasons.

Some of the beneficiaries used the money for medical treatment, forex bureau business, and purchase of commercial aircraft.

Support Eye Radio, the first independent radio broadcaster of news, information & entertainment in South Sudan.

Make a monthly or a one off contribution.