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Article

18 Aug 2014

Author:
Kennedy Senelwa, The East African (Kenya)

South Sudan govt. declines Global Witness' appeal for moratorium on oil contracts to avoid escalation of conflict

"Defiant Juba to issue oil contracts"

South Sudan has said it will continue issuing new oil contracts despite concerns by a global watchdog on natural resource use that the deals could be used to aggravate the conflict that broke out in December. Petroleum and Mining Minister Stephen Dhieu Dau said oil was the backbone of the Juba economy and suspending issuance of new contracts for prospecting and drilling activities would hamper growth...Global Witness, which investigates the role of natural resources in funding conflict and corruption, had in June asked the government to suspend new contracts and review existing ones until peace and the rule of law are restored...“If contracts for these concessions are granted, companies would need to employ armed security forces. In a region home to high numbers of military and militias, a further influx of armed actors could worsen the conflict,” said Global Witness.