JUBA, SOUTH SUDAN 

·     Speaker of the reconstituted Transitional National Legislature,

·     Honorable Ministers,  

·     Members of National Legislature,

·     Speaker of the State Legislature,

·     State Governors and Ministers,

·     Diplomatic Corps,

·     Distinguished Ladies and Gentlemen.

1.  Let me first commend the efforts of the National Legislature and Council of States, and UMISS for organizing this high-level meeting themed “Sustainable and Equitable Management of Environment and Oil revenues”. Secondly, I want to express my appreciation for inviting RJMEC to participate in these discussions as the monitor of the implementation of the Revitalized Agreement on the Resolution of the Conflict in the Republic of South Sudan, which in its provisions on ensuring the management of economic and financial resources, supports the objectives of this gathering. Specifically, the general principles under Article 4.1.5 of R-ARCSS states that “The wealth of South Sudan shall be shared equitably so as to enable each level of government to discharge its reconstruction, development, legal and constitutional obligations, duties and responsibilities.”

2.   The Revitalized Peace Agreement underscores the need for natural resources, which is the main source of South Sudan’s wealth, to be extracted in a sustainable manner so to positively impact the lives of the people. The laws of South Sudan, namely the Constitution, the Petroleum Revenue Management Act 2012 and the Public Financial Management and Accountability Ac 2021, provide the legal frameworks for transparent and accountable management of these resources. These legislations are further endorsed by specific provisions stipulated in the R-ARCSS.

3.   Every natural resource-abundant country needs to regulate the extractives sector in the interest of its people, given its significant social, economic, and environmental impact. This is a daunting challenge, requiring not only the design and enactment of the necessary laws and regulations but also the assignment of responsibilities for implementation across ministries and often numerous government agencies. The Revitalized Peace Agreement sets out to create a regulatory system for management of both financial and natural resources that is comprehensive and transparent. Full implementation of the provisions will address some of the challenges that will be deliberated here in the next three days.

Chairperson, Distinguished Ladies and Gentlemen,

4.   Within the wider ‘resource curse’ debate, it has been noted that although oil and gas extractive industries generate vast sums of wealth for low- to middle-income countries.  However, many communities affected by these extractive industries, such as in some oil producing countries in Sub-Sharan Africa, continue to live in poverty. Hence it is incumbent on governments to have effective regulations to ensure that the benefits obtained by exploiting natural resources are not undercut and eroded, so as to avoid destruction and exploitation that leaves behind irreparable damage.

5.   The R-ARCSS also recognizes that natural resources extraction inevitably imposes environmental damage, including disruption of fragile ecosystems, and longer-range and often irreparable harm which will have dire consequences on the local populations at the extraction sites and beyond. It is against this backdrop that the R ARCSS, in article 4.8.1.14.15, mandates efficient production and environmentally friendly extraction of natural resources.

Chairperson, Distinguished Ladies and Gentlemen,

6.   In the pursuit in ensuring equitable distribution, oil producing states are being compensated through a derivation-based principle, whereby the Petroleum Producing States shall receive two percent of the Net Petroleum Revenue; and the Local Government Councils within the Petroleum Producing States shall receive three percent of the Net Petroleum Revenue as a compensation to fund efforts to mitigate the social and environmental losses associated with extraction of the resource. In Ecuador, for example, USD 1 per barrel of oil produced in the Amazon region is set aside to compensate for associated environmental damages with the implicit assumption being that environmental cost is directly linked to the number of barrels that a company produces. In Indonesia, special resource revenue-sharing agreements with the regions of Aceh and West Papua helped to end years of violent conflict. In Nigeria, the 1999 Constitution establishing a revenue-sharing system, followed by a 2002 court case reinforcing entitlements of oil-producing states, have contributed to greater peace and security in the Niger Delta.

7.   In order for sustainable and equitable management of environment and oil revenues to contribute to sustainable peace and development, there must be transparency, accountability, more publicity and disclosures, scrutiny and analysis. Non-disclosure of information at all levels of government provides a fertile ground for illicit activities and mismanagement of the petroleum revenues, as corruption tends to thrive in circumstances.

8.   I would to seize this opportunity to urge the RTGoNU to further strengthen the oversight institutions of the National Audit Chamber and the South Sudan Anti-Corruption Commission to ensure the presence of strong transparency and accountability institutions.

9.   As conclude, I wish fruitful deliberations over the next three days and do expect that recommendations of this august meeting will contribute to sustainable and equitable management of environment and oil resources in the Republic of South Sudan. 

I Thank You!