(JUBA) – A new United Nations report has raised serious concerns about South Sudan’s handling of public finances during the 2023/24 financial year, exposing significant overspending, opaque oil deals and growing commercial debt, all amid a worsening crisis in unpaid salaries for civil servants.
According to the report from the UN Panel of Experts, South Sudan collected more revenue than anticipated despite a sharp drop in oil income during the last quarter of the year. Government spending, however, ballooned to SSP 2.43 trillion (approximately USD 528 million), far beyond the approved budget of SSP 1.78 trillion (about USD 387 million).
Despite this overspending, the report finds that none of the government sectors received the full amounts allocated. The salary budget was especially affected, with the government confirming that less than half of it was actually disbursed. This has deepened a public salary crisis, with doctors, teachers, police and soldiers frequently reporting months long salary delays or total non payment.
South Sudan’s economy depends almost entirely on oil exports. The report describes the country’s public finances as highly centralised and vulnerable to political interference, corruption and mismanagement. It states that public officials often face political pressure and are incentivised to channel contracts to companies offering bribes or kickbacks.
A former official quoted in the report said, “You know you can be removed at any time,” explaining why so many public servants focus more on securing personal deals than on governance.
The report outlines how senior figures in the President’s Office and the Ministry of Finance allegedly handpick which companies receive crude oil shipments. Although these cargoes are meant to be auctioned, companies that can offer large advance payments are favoured. In some cases, well connected local firms are awarded cargoes and then sell them to international oil traders, collecting substantial commissions in the process.
Oil revenues are officially deposited into South Sudan’s account at the US Federal Reserve Bank in New York. From there, funds are transferred to banks in Kenya, Uganda and the United Arab Emirates. Large payments are processed through these accounts, and in some cases, physical cash is flown to Juba.
In a key example, one oil buyer was asked to bypass official channels and pay Amuk General Trading, a local firm previously linked to supplying food to the SSPDF (South Sudan People’s Defence Forces). This violates South Sudanese law, which requires all oil proceeds to first go through government bank accounts.
The UN Panel called the oil for roads programme one of the largest diversions of public resources. In the 2023/24 fiscal year, SSP 378 billion (around USD 82.2 million) was allocated to this scheme, a figure nearly equal to the SSP 414 billion (about USD 90 million) set aside for all civil service salaries and government operational expenses.
| Category | Amount (SSP) | Approx. USD |
|---|---|---|
| Actual Government Spending | SSP 2.43 trillion | USD 528 million |
| Approved Budget | SSP 1.78 trillion | USD 387 million |
| Oil-for-Roads Programme | SSP 378 billion | USD 82.2 million |
| Salaries & Operations Budget | SSP 414 billion | USD 90 million |
In November 2023, internal conflict over resource allocation intensified when a senior official objected to a decision by the Ministry of Finance allowing a trader to keep USD 9 million (about SSP 41.4 billion) instead of using it to fund the construction of a new presidential palace in Juba.
South Sudan’s unresolved debts to foreign lenders are also mounting. Since 2012, the country has borrowed several billion dollars from commercial banks, but repayment largely stopped after 2018.
In January 2024, the International Centre for Settlement of Investment Disputes ruled that the Government and Central Bank of South Sudan owed USD 1.02 billion (over SSP 4.7 trillion) to Qatar National Bank in unpaid loans and interest.
Just days later, on 31 January 2025, the African Export-Import Bank filed a case in London’s commercial courts claiming USD 657 million (around SSP 3.02 trillion) in unpaid oil-backed loans. Of that, USD 640 million (roughly SSP 2.94 trillion) was guaranteed by the Central Bank.
Loan documents show Juba borrowed:
| Date | Amount (USD) | Approx. SSP |
|---|---|---|
| 2019 | USD 400 million | SSP 1.84 trillion |
| August 2020 | USD 63 million | SSP 289.8 billion |
| December 2020 | USD 250 million | SSP 1.15 trillion |
| Total | USD 713 million | SSP 3.28 trillion |
In 2023 and early 2024, the government attempted to borrow another USD 4 billion (equivalent to SSP 18.4 trillion), though these loans were not finalised.
The UN Panel estimates that South Sudan’s outstanding commercial debt now exceeds USD 2.1 billion (around SSP 9.66 trillion), equivalent to one to two full years of oil revenue before recent pipeline issues drastically reduced income.
The report also details how revenues from institutions not formally under the government’s budget system have been diverted. On 9 September 2022, Petronas International Corporation Ltd., a Malaysian oil company, informed South Sudan of its plan to sell its stakes in three oil producing joint ventures. After prolonged discussions, the government blocked the sale in January and March 2024, demanding instead that the assets be transferred to state owned Nilepet.
In August 2024, Petronas initiated international arbitration proceedings against the Government of South Sudan over the matter.
The UN Panel of Experts, established under Resolution 2206 (2015), presented its latest report to the UN Security Council Committee on 1 July 2025.
The Panel monitors how South Sudan manages its oil wealth and finances, especially amid increasing internal debt, ongoing delays in public service pay and rising concerns over elite corruption and political instability.
Additional contribution by Rothschild Jobi.
