Global witness: Sudan’s new oil deal must guarantee transparency
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By Julius N. Uma

April 10, 2011 (JUBA) - As fresh talks on the future of Sudan’s oil
commence in Addis Ababa, Ethiopia, a UK-based organization has urged
parties involved in the negotiations to deliver on stated commitments
to transparency in the oil sector as measures to “preserve peace and
drive development”.

In a statement released on April 8, Global Witness urged members from
the south’s ruling party and their northern counterparts currently
involved in the negotiations ahead of the South’s separation to strive
towards ensuring that whatever is agreed upon is based on “credible
transparency mechanisms”.

“A lack of transparency in the current deal has fuelled mistrust
between the north and south since the Comprehensive Peace Agreement
(CPA) brought an end to Sudan’s 22-year civil war in 2005,” Global
Witness says in the report.

It added, “Suspicion that the north was cheating it out of due
revenues was one of the primary reasons for the south’s temporary
pull-out from the shared government in 2007. It is still impossible to
tell if the current deal, a 50:50 split of southern oil revenues, has
been implemented fairly.”

South Sudan is due to become independent in July after its population
overwhelmingly voted for separation in the self-determination
referendum. The vote was a key part of the country’s 2005 CPA.

According to Global Witness, with more than 75% of the oil is in the
south but the pipelines, refineries, and port for exporting are all in
the north so it is important that the two sides come to a new
agreement on how to share oil revenues.

“If Sudan is to build a sustainable and peaceful future, it must learn
the lessons of the past. This means the new oil deal must be built on
effective transparency and accountability mechanisms from the outset,”
says Dana Wilkins, a Global Witness campaigner.

She added, “Without transparency the new oil deal will set the stage
for continued suspicion and disputes, and potentially even a return to
conflict.”

In 2009, Global Witness exposed discrepancies of between 9-26%, which
it said existed between the oil production figures published by the
government in the north and those published by CNPC, a Chinese
state-owned oil company and the main operator in Sudan.

Specifically, however, the organization says the new oil agreement
currently being discussed should include full regular independent
monitoring to build trust and confidence between the two parties,
involve full audits, covering engineering, technical and financial
flows, conducted annually by a credible international firm.

In addition, it agitates that information on sales and production
figures, fees paid and received by governments and oil companies and
exploration contracts must be published, while an independent
multi-stakeholder group with sufficient authority, resources, access
and expertise must also be brought in to monitor the general
functioning of the sector.

“As the legitimate owners of Sudan’s natural resources, ordinary
citizens must be able to see exactly how they are being managed, how
much money is being generated, and what it is being spent on,” further
said Wilkins, adding that, “Both sides must make good on their
commitments to a transparent deal, thereby making oil a driver for
peace and development, not war.”

Established in 1993, Global Witness is a non-governmental organization
dedicated to exposing the corrupt exploitation of natural resources
and international trade systems, to drive campaigns that end impunity,
resource-linked conflict, and human rights and environmental abuses.

Nominated for the Nobel Peace Prize in 2002, the organization has been
actively involved in Sierra Leone, Liberia, the Democratic Republic of
Congo (DRC) and Cote d’Ivoire, and its activities have reportedly
brought the problem of blood diamonds to public and policy makers’
attention.

(ST)

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