By William Madouk
The recent proposal by a Member of Parliament Changkuoth Bichiock Reth to suspend the oil-for-development initiative to clear salary arrears for civil servants has been opposed by the Association of South Sudan Contractors (ASSCO).
Malish Martin, chair of ASSCO, has publicly opposed the idea, arguing that cancelling the oil-for-development program could have long-term negative consequences for the country’s infrastructure and economic growth.
He said that while addressing salary arrears is crucial, it should not come at the expense of vital development initiatives.
“ASSCO acknowledges the need to address the immediate financial crisis facing the country and review the allocation of resources for optimal impact,” Martin told reporters at a press conference on Monday.
“However, we believe that cancelling the oil for infrastructure program as suggested by some lawmakers will not be in the interest of the country and will lead to negative long-term consequences,” he added.
Weighting some of the challenges, Martin said suspending oil meant for development could disrupt infrastructure projects that is meant to improve accessibility around the country.
“You cannot solve the problem by creating more problems – we are talking about contractors who have done some work and they are demanding payment for work they have done,” he said
According to him, contractors and suppliers have put all their money including some loans on infrastructure but they are still not paid their dues because the main contractor, ARC was not paid.
He urged the government to scrutinized the matter and come up with an inclusive and win-win solution.
“The government should expeditiously clear any payment arrears to ARC, to make it possible to rescue these subcontractors that are implementing the projects on the ground,” he noted.
He hinted that it could also lead to the collapse of over 200 contractors and suppliers, that are on the verge of collapse due to mounting debt from non-payment for several years.
According to ASSCO, road infrastructure is vital for accessibility and expose local traders to markets as they go about with their daily businesses rather than exporting everything.
He was reacting to an ambitious plan mooted by an MP to clear 10 months’ salary arrears for civil servants, organized forces and constitutional post holders.
Chairperson of the Specialized Committee on Finance and Economic planning, Changkuoth Reth had proposed that the 20,000 barrels per day allocated for development should be redirected for salary payment.
He suggested the suspension of the resolution of the cabinet which allocates the Nile Blend Crude oil for infrastructure development projects and be reallocated by redirecting it to pay and clear wages and salaries.
Civil servants and members of the organized forces have gone for nearly 10 months without pay.