A report by the US-based Sentry group says South Sudan’s gold mining sector is riddled with corruption involving President Kiir’s relatives, military leaders and other senior officials.
The Sentry, a group co-founded by actor George Clooney and activist John Prendergast, stated that the new report exposes illegal mining now underway in Eastern Equatoria state, where the governor has ties to numerous mining businesses, as well as the Ministry of Defense’s involvement in problematic mining licensing deals.
The report warns that, without strong reforms, abuse in the minerals sector could spur the same kind of resource-driven violence that plagued the petroleum industry throughout civil wars fought on South Sudanese soil dating back to the 1980s.
John Prendergast said: “Through close relatives and allied government officials, President Salva Kiir is linked to dozens of mining companies in South Sudan. “
He revealed that the president’s core network has used its control of the minerals sector to consolidate its grip on South Sudan’s state revenues and natural resources.
“If South Sudan’s people are to benefit from the country’s mineral wealth, including lifesaving healthcare urgently needed in the face of a global pandemic, financial institutions should take immediate steps to identify and monitor the bank accounts of those in power, their business networks, families, and inner circles,” he stressed.
The watchdog group said it has established that Kiir’s close associates and lower-level ministers have held shares in no fewer than 32 South Sudanese companies established to extract minerals.
It further said the government has yet to disclose crucial information about their ownership structures, activities, or open applications for licenses.
Sophie Lombardo, Investigator for The Sentry, said: “Without swift action, South Sudan’s mining sector may fall into the same traps as the oil sector, which has helped drive war in South Sudan for decades. Military interests abound, either through joint ventures with private investors or companies controlled by the Ministry of Defense”.
Lombardo said their investigative findings reveal opaque and questionable deals that raise significant concerns about secret off-budget revenues within an institution marred by a history of abuse.
J.R. Mailey, Investigations Director at The Sentry, said: “Today, widespread corruption, mismanagement, and poor oversight in the mining sector are intertwined in a vicious cycle. Individuals linked to criminal activities have received numerous mining licenses, as have companies with little technical or financial capacity, raising serious questions about how licenses are granted.”
“Kiir’s daughter partly owns a company with three active mining licenses. A company with three mining licenses lists Vice President James Wani Igga’s son as a shareholder,” reads the 33-page report titled "Untapped and Unprepared: Dirty Deals Threaten South Sudan’s Mining Sector".
The report stated that Ashraf Seed Ahmed Hussein Ali, a Sudanese businessman commonly known as Al-Cardinal who was placed under Global Magnitsky sanctions in October 2019, reportedly owns the company currently holding the most mining licenses.
In the gold-rich region of Kapoeta, the report said, state government officials have issued licenses independently of the central government, a probable violation of South Sudan’s Mining Act that has allowed illegal mining to take place on land previously allocated by Juba to other companies.
It disclosed that the military has developed problematic mining interests in an effort to address budgetary shortfalls.
The watchdog group recommends the creation of a public register disclosing beneficial ownership, adding that there should be a retroactive audit of the mining sector.
The group appealed to US Department of State to encourage responsible engagement in South Sudan’s mining sector by implementing investment reporting requirements for US persons.
The government spokesperson could not immediately be reached for comment.