BREAKING: ALLEGATIONS OF CORRUPTION AT SOUTH SUDAN’S STATE OIL COMPANY EMERGE

Senior Official of NILEPET Accused of Embezzlement Amid Company’s Financial Crisis

South Sudan’s national oil company, NILEPET, is facing serious allegations of financial mismanagement while employees reportedly go unpaid for months, according to information received by this publication.

Sources familiar with the situation claim that the company’s current director, Eng. Ayuel Ngor Ayuel Kacgor, is at the center of allegations involving the misappropriation of company funds while the state-owned enterprise struggles to meet its payroll obligations.

According to multiple sources who requested anonymity for fear of retaliation, NILEPET staff have not received their salaries for approximately four months, creating significant hardship for employees and their families.

The allegations come at a critical time for South Sudan’s oil sector, which accounts for nearly all of the country’s export revenue and is vital to its struggling economy.

Property Acquisitions Raise Questions

The most serious allegations involve claims of unexplained wealth, including the reported purchase of high-value real estate in Nairobi, Kenya.

Sources allege that a property worth approximately $2 million USD was recently acquired in Karen, an affluent suburb of Nairobi, allegedly linked to the NILEPET official but registered under a family member’s name.

This publication has not independently verified these property claims, and efforts to reach Eng. Kacgor for comment were unsuccessful prior to publication.

South Sudan’s Oil Industry Challenges

NILEPET (Nile Petroleum Corporation) was established as South Sudan’s national oil company following the country’s independence in 2011. The company holds significant stakes in various oil exploration and production ventures alongside international partners.

South Sudan’s petroleum sector has faced numerous challenges since independence, including civil conflict, fluctuating global oil prices, and governance issues. Oil production, which peaked at around 350,000 barrels per day before South Sudan’s independence, has significantly decreased due to conflict and infrastructure challenges.

Economic experts have long expressed concerns about transparency and accountability in South Sudan’s oil sector, with several international organizations calling for stronger governance frameworks.

Regional Pattern of Investment

The allegations, if substantiated, would follow what anti-corruption advocates describe as a concerning pattern of public officials from several East African nations investing questionable funds in real estate in neighboring countries, particularly in Kenya’s capital.

Kenya’s Assets Recovery Agency (ARA) has in recent years stepped up efforts to investigate suspicious property acquisitions by foreign nationals, particularly those holding public office in their home countries.

Kenya Insights will continue to investigate these allegations and has reached out to Kenya’s Assets Recovery Agency and South Sudan government officials for comment.

Financial transparency experts emphasize that addressing corruption in natural resource management is critical for South Sudan’s development and the wellbeing of its citizens.