UN suspects Chinese oil firms of financial malfeasance in South Sudan - Living Environment

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Monday, March 1, 2021

UN suspects Chinese oil firms of financial malfeasance in South Sudan


South Sudan has one of the most corrupt oil administrations in the world. Several cases of corruption and embezzlement have emerged in the last ten years.

A group of investigators mandated by the United Nations (UN) has asked all Chinese companies in South Sudan to provide details of how the country’s oil revenues are paid to the government. Indeed, experts suspect one of the Chinese companies operating in upstream oil, embezzlement of public funds as well as lack of transparency.

T
his survey appears to be aimed specifically at the DPOC consortium, one of the country’s largest producers, led by CNPC (41%), Petronas (40%), Nilepet (8%), Sinopec (6%) and Tri-Ocean Energy (5%).

“The panel is seeking clarification on DPOC’s financial transactions with the government and Nilepet [South Sudan’s state-based oil company]. The Panel is requesting detailed responses because it has received information that DPOC has not made payments to the South Sudan Central Bank,”read a letter from the experts to DPOC.

UN officials say they have information that the profits from the marketing of crude oil are not regularly returned to state coffers. The panel is also concerned that Nilepet’s public revenues from its 8% stake in the consortium have not been transferred transparently from DPOC’s accounts.

In South Sudan, DPOC has long been accused of financing militias that commit atrocities in the country and polluting the environment. As for Nilepet, it is according to Transparency International at the heart of the state corruption apparatus that ranks the country 178E 180 of the world’s most corrupt.

 

Source: Agence Ecofin 

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