South Sudan says US sanctions on tycoon's firms 'unfortunate'
South Sudanese businessman Benjamin Bol Mel. Two of his companies have been sanctioned by the US amid graft allegations.
South Sudan’s Ministry of Foreign Affairs has protested a US government decision to impose sanctions on two local companies over alleged corruption.
Officials argued that the sanctions imposed on ARC Resources Corporation Ltd and Winners Construction Company Ltd will weaken diplomatic relations between the two countries.
The two firms are owned by South Sudanese businessman Benjamin Bol Mel.
The US Treasury’s Office of Foreign Assets Control said the companies were owned and controlled by a sanctioned personality.
However, the government of South Sudan has protested the move.
“The unfortunate decision of the US government to impose additional sanctions on two South Sudanese companies runs counter to the spirit of constructive engagement and falls short of its intention to strengthen our government institutions,” the ministry said.
“We, therefore, recommend that policymakers reflect critically on how they have made such a decision. After South Sudan's recent civil conflicts, the so-called experts on South Sudan based in the US have been continuously lobbying for counterproductive sanctions against South Sudan.”
The sanctions, published as the world marked International Anti-Corruption Day, targeted 15 companies in Africa, Europe and the US.
The US has accused the two companies for profiting from and allegedly looting public funds.
But South Sudan says that sanctioning individuals and firms risks causing hiccups in improving bilateral relations with the US.
“In South Sudan, sanctions weaken rather than reinforce our reform agenda. Enlightened United States policymakers can make decisions that are more rational and exercise greater discretion.”
Companies respond
In response to the US sanctions, ARC Resources Corporation reassured its business partners that it would continue operating normally despite the ban.
“This commitment is therefore to reassure you as a trusted partner in the ARC family that we shall continue to operate normally to give value to the people of South Sudan as we have been since we started. We urge you to continue with your valued work as we strive to get clarification on this occurrence,” said ARC in a statement.
A report released by The Sentry in October this year said that people sanctioned in the past, including Mr Mel, were managing to dodge US embargoes.
“Kur Ajing Ater and Benjamin Bol Mel Kuol, two influential South Sudanese businessmen who are sanctioned by the United States (US) and are part of President Salva Kiir’s inner circle, are potentially skirting US sanctions, according to an investigation,” the Sentry said.
“Several companies that have received billions in US dollar-denominated contracts from the government of South Sudan over the last three years are owned by relatives of Ajing and Bol Mel, who are the likely beneficial owners, according to incorporation records, contracts, and social media posts.”
The lobby group added that its investigation suggested that Benjamin Bol Mel Kuol used an alias to continue running a business empire that includes companies receiving lucrative US dollar-denominated government contracts.
“Since 2017, at least three new road construction companies connected to Bol Mel have been registered in South Sudan: Winners Construction, ARC Resources (ARC), and Save Nation,” the group said.
“Collectively, these companies have reportedly been awarded road construction and other infrastructure project contracts worth at least $3.5 billion. These contracts appear to be oil-backed, no-bid contracts, in violation of the 2018 Public Procurement Act.”
Bol Mel previously oversaw ABMC, which was awarded contracts worth tens of millions of dollars by the government of South Sudan.
He is engaged in road construction and other infrastructure project contracts worth billions of dollars, including the Bor-Juba road.
ARC and Winners were this week sanctioned for being owned or controlled by, directly or indirectly, by Bol Mel, a person whose property and interests in property are blocked pursuant to US Executive Order number 13818.
