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The Wealth Sharing Handbook is important for all of us to watch and follow how the National governments in Khartoum will conduct and discharge its obligations and responsibilities in the implementation of the agreement. Each one of us should own a copy and it is his or her duty to report any violations to the press or the authority in order to remedy the fault. He / she asks the Representatives of the government of the South Sudan to respect and commit themselves to the oath to implement the agreement without agreeing to any tricks from the National government that will affect the socio economic development of the South Sudan and Sudan. The book is indispensable guide for all administrators, politicians and students to consult and use it to follow up the implementation of the agreement.




Peace is necessary for the Comprehensive Peace agreement of 9 January 2005 to sow the fruits of development by injecting the financial revenues and releases agreed upon in this document. But we have to be alert in the follow up through the Bank of South Sudan. I have written the South Sudan: South Sudan Watch: Wealth Sharing Agreement for the Government of the South Sudan and the people to watch and follow its implementation. I have made some points from the Protocol for Wealth Sharing, which I advocate our people to watch in the Sudan. Twin Tier economic systems are the Islamic economics in the northern Sudan and the African capitalism free enterprise in the South Sudan are claimed to function side by side in one United Country and economy. Thus, the Proposed Interim Constitution of the Sudan March 16, 2005, the section on the Economy Wealth Sharing is covered in articles of Constitution, 185 Wealth Sharing, 186 Land Resources, 189 Resources, 192 Oil Revenue, 193 Sources of National Revenue, 195 South Sudan Revenue, Sources of state Revenue, 197 National Revenue Fund, 198 Fiscal and Financial and Allocation and Monitoring Commission, 201 Banking, 206 Inter State and International Trade, 207 New Currency, 208 Existing Oil Contracts. These must provide the answers for both systems to achieve the progress. This economic system has features founded in a Confederal and Federal states. But since the National government controls the natural and financial resoures the system of this economic Wealth Sharing is of Federal State. One who owns has the power. The sovereignty, which is the authority of the nation, is under the Central government. These economic systems are incompatible because of interest free charging by the Banks and imports of goods forbidden by Sharia and method of management. Also Islamic religion does not separate religion and economic clearly so that there is real differentiation. Islam does not segregate from the wealth sharing in the economy but perhaps the National Islamic government may have especial tolerance and version of Islamic economics. Dr Turabi has repeatedly said those issues of development, employment, social structure of the society and control of financial resources is important because these cannot be separated from Islamic religion. I will examine some of the articles of the wealth sharing during the interim period to find out areas of conflict and how they should be resolved in the short and long run.

In the preamble on the protocol on Power Sharing article 1.3.1, National Government is given authority to make final decisions and promote national sovereignty of the Sudan and the welfare of the people Article 1.4. 1 (GOSS) and National government recognized sovereignty and article 1.4.2 unity and diversity of the Sudanese people is affirmed, and 1.4.3 both (GOSS) and National government recognize to protect the Human rights and fundamental freedoms as stated also in the Islamic Constitution of 1998 articles 20, 21, 23, 24 and 25. In the 1998 Constitution, the Sovereignty belongs to God whereas in democracy as understood in the west, sovereignty belongs to the people. The relevant article 4 Supremacy and Sovereignty says, God, the creator of all the people, is supreme over the state and sovereignty is delegated to the people of the Sudan by succession, to be practiced as worship to God, performing his trust, developing the homestead, and spreading justice, freedom and shura in accordance with the Constitution and laws. Keeping this in 1998 Constitution means the north still considers Sharia as the supreme law in the north Sudan and the South Sudan secular democratic Constitution. . In the Interim Constitution of the Sudan if adopted, Sovereignty means: 1. Sovereignty of the Sudan is vested in its people and shall be exercised in accordance with the provisions of this Constitution and the law, without prejudice to the autonomy of the Sudan and states.

Given that the Sovereignty is in electorate in a democratic state, the people decide who to elect and represent them. Unfortunately the military are not authorized by the people and as such cannot claim the sovereignty but rule without approval from the electorate. In article 3 of the Interim Constitution on supremacy, The Interim National Constitution shall be the supreme law of the land. The Interim Constitution of the South Sudan, state Constitutions and all laws shall comply with it. If the National government applies these principles, this means that there will be no Islamic State and sharia law in the Sudan. We believe that the northern sectarian political parties of Uma, National Congress, Popular National Congress and Democratic National Unionist party and others will not accept this since it affects their manifestos and party constitutions. Because they do not want to drop their Islamic faith from their charters. Therefore, it is apparent that there are two laws, secular in the South Sudan and Sharia in the north Sudan. The Wealth Sharing agreement has come at the time the Sudanese are tired of fighting for equitable sharing of wealth, they have realized that war is the last resort. They had not exhausted the logic of reasoning and reaching resolutions that produce justice and equality. The current peace is welcomed by the Sudanese and would prefer that it would settle the volumes of the problems the Sudanese inherited from the sectarian Islamic parties, military regimes and the NIF so as to embark on the path to peace and progress. Peace by itself is a blessing but it has tools for achieving it,

reconciliation and economic development through provision of funding. The Government of the Sudan signed all the six Protocols and SPLM/A on condition that the sovereignty, independence and the unity of the Sudan must be respected, honored and preserved. This agreement and its articles if implemented will go along way to improve the development and living standards of the Sudanese people. Both the Muslim and Christian leaders have a role to promote justice and the development of the marginalized areas. Their neglect will not solve any of the agreements but will revive the struggle and destroy the peace achievements gained by the agreement. So there is a need for the South Sudanese to watch the Wealth Sharing Agreement to see that from the start, right now the (GOSS) and (GOS) should know that the areas of conflict are there. They need to appoint officials who will apply justice in releasing the revenues for the respective state without further seeking permission from the Ministry of Finance who may subject the release to bias decisions again. In the Sudan there had been marginalization of both South Sudan and parts of the northern Sudan populated by the African Muslims since it became independent in 1956. The northern minority clique never made any plausible and concrete reason that would convince the marginalized areas of the Sudan Nuba Mountains, South Sudan, Darfur, Ingessena and Beja for their lacked of progress. They were left behind because they were discriminated on the basis of race. The Africans are believed that there are imaginary people called Arabs that have robbed the political and economic power and enrich themselves at the expense of the people. Of course, that cannot be Islamic because Islam prevents corruption and robbery which is punishable by amputation. The Agreement on Wealth Sharing signed at Naivasha Wednesday January 7th, 2004 which promise to wealth sharing on equal basis for the first time since the Sudan was invaded and occupied by Egyptian Khedive Muhammad Ali in 1820. The pattern of development had been all the resources flowed northwards gold, diamonds, slaves, Nile water and livestock. The people of those marginalized areas bore poverty in the eyes of the British and Muslim rulers who came later to inherit the colonial political and economic power of the state. The writing of this agreement depends on the human will particularly the government counter part in the north and the partners the South. In article 1.2 Wealth Sharing principles is the equitable sharing of the wealth so that both governments can discharge their legal and constitutional responsibilities and duties. This is important and depends again and again on the consciousness and will of the action men and women who recognize justice as the basis for peaceful coexistence for the diversity of the Sudan. Northern Sudanese who have among them National Islamic Front members, whether they have divided themselves into many parts National Congress, (NC), Popular National Congress, (PNC), Uma or Khatmiya are Islamic sectarian parties which believe in the implementation of Sharia Divine Law, they are the same in their thinking belief and composition. President Omer el Beshir has promised not to abandon or compromise Sharia God’s Divine Law with infidels. By declaring Sharia as the supreme law of the land, the (NIF) imposes itself to take over the authority and control of the economy and rule the Sudan forever. NIF claims that the Muslims are granted authority to govern the Sudan. Allah says, If any do fail to judge by the light of what Allah has revealed, they are no better than the Unbelievers. Sura 5 verse 44. Hence, the Islamic rulers of the Sudan feel that they cannot rule without Sharia Law.

The Africans Muslims and non-Muslim Africans are marginalized and not to get benefits from political, economic, cultural, and religious and security rights. The marginalizarion of the Nuba Mountains, South Sudan, Ingessena, Fur and Beja African ethnic groups have been to deprive them of Wealth Sharing. They are not to be appointed to senior positions so that they cannot influence the Islamic policies by secular ideas. This especially applies to the non-Muslims as Allah says, And never will Allah grant the Unbelievers a way (to triumph) over the believers. Sura 4 verse 141. The NIF discriminates the African Muslims and non-Muslim Africans as unequal and forbidden to implement the Sharia policies and programs. The Christians are kaffir and are not allowed to rule Sudan with secular laws and non religious Constitution. Those who do not accept Sharia are disbelievers in Islam and they commit apostasy. They are not friends of the Muslims. Sharia has also forbidden the Muslims to ally or collaborate with non-Muslims who give favor either in economics, business, and security or to harm Islam. So Islam advises the Muslims not to take or compromise with non-Muslims on the principles of Sharia. Allah says, Let not the Believers take for friends or helpers Unbelievers rather than Believers; if any do that, in nothing will there be help from Allah; except by way of precaution, that you may guard yourselves from them. Sura 3 verses 28. Therefore, when there are judgments in case involving the non-Muslims and Muslims the jurists will give judgment in favor of the Muslim or Sharia Law. In case of funds are not released to the (GOSS), even if the Constitutional Court hears the case, it will make judgments in favor of Sharia. In the Sudan Constitution article 4, mentioned above the Islamic Sharia approves the running of the Islamic economic in an Islamic State by the Islamic government. We have heard that none can break God’s Law and so in a Unitary Sudan; it implies the Islamic system would be in accordance to the Divine Law and supervised by the Ulemas and jurists. The choice for final decisions in the implementation of the wealth agreement its success will require the (GOS) to recognize political priorities over religious. Hence, compromises will have to be made by the Islamic Jurists and the President of the Sudan will have to choose daily between religious beliefs and political decisions to implement the Wealth Sharing agreement. Therefore, the choice of the Islamists will often be to put religious decision supersede the political decisions. In 1978, President Nimeri altered the Sudan from Western capitalism or free enterprise economy or mixed economy, a mixer of good parts of capitalism and socialism and declared an Islamic economy. Still, the economy collapsed and the only wayforward for Dr. Hassan Turabi was to salvage the country by Islamic economics. President Gaffaar Nimeri introduced the Islamic economics and values of justice, equality, equal distribution of resources and immediately imposed Islamic Banking System and dropped the Western Conventional Banking system. Thus, the Islamic government of the President Omer el Beshir is to oversee that the community has equal access and opportunities to a fair distribution of wealth. The Islamic government promises to regulate the economic transactions and activities, which give priority to the interests of community and individuals. The Islamic government preaches that it will enforce the principle of equity and sees that individuals practice justice in the accordance to the Sharia law.

So this agreement cannot be ignored like the Addis Ababa Agreement of 1972, I have to examine and analyze the history of economic and commerce in the Bible and Koran, decisions making process, loopholes and religious obligation that affect the Wealth Sharing Agreement which is the backbone of the peace agreement and its articles to discover areas of conflicts that the decision makers in Khartoum may rescind and adjust to confirm to Sharia Law. In this Wealth Sharing Agreement, the President who is a NIF Muslim makes final decisions on appointments and policies. So there is fear that he would be faced with tough decisions and choices between Sharia and secular decisions. Surely, the final decision will be in favor of Sharia law interpretation. It is vital for both South Sudan leaders and the north to know these and hence begin to appoint officials to honestly implement it. Because President Gaffar Nimeri did it to promote God’s Law, Dr Hassan Turabi and President Omer el Beshir could not cancel it. The sources of the law are Sharia article 65 of the Sudan Constitution and prevent any amendment of God’s Law. The members of the national Assembly will thus not discuss any law that is contradicting the Koranic Laws. The Sharia is the Supreme law of the land and the courts are to implement the Sharia and any ruling must reflect the Divine Law. In article 1.14 of the Wealth Sharing agreement demands that the National government will not withhold any allocation of funds to the South otherwise the (GOSS) will take it to the Constitutional Court. It is the Constitutional Court that interprets the Islamic Constitution of 1998; article 99 says, The Judicial Authority will therefore give judgments in accordance with the Constitution and the law. It thus refers to the Islamic Constitution of 1998 and in accordance with Islam; the doubt of benefit will be given to Muslims because they are superior to the nonMuslims before the Islamic Court. The criticism I give here is for us to watch the Wealth Sharing Agreement how it will work by examining the relationship between Sharia and non Sharia Laws, in regard to Wealth Sharing, division of Assets, Oil Revenue, Islamic Banking and imports of goods not to oppose peace but to strengthen it so that the implementation is conducted in good faith for the purposes of preserving peace and development of Southern Sudan. If the function of the GOSS is to improve the economic progress and efficiency, redistribute national income in the state, stabilize the economy by macro economic policies and play a role in the international trade, the state of the South Sudan will grow. But if the tools of development are held from it, the South will linger in the same situation of retardation, as it did not struggle to improve its lot.

The Islamists prefer a mixed economy, which excludes the capitalist’s ills. It excludes the extremes of socialism but depends on government control of prices, taxes and movement of goods within the state. By returning to the principles of Sharia

applied by the Prophet Muhammad, the (NIF) believes they will introduce a new economic system Arab Islamic Socialism free from the Western capitalism. The Islamic Divine economic system is committed to social justice, equitable distribution of wealth to elevate the marginalized people of the Sudan. As long as Sharia remains, there are problems with the economy. So Sudan Constitution of 1998 article 8, National economy says, The state directs the growth of the national economy guided by planning on the basis of work, production and free market to prevent monopoly, usury, cheating, and to ensure national self-sufficiency, abundance, blessings and the aims among states and regions. This article is backed by article 11 Jusctice and Solidarity that says, The Republic of the Sudan shall guard and prompt social solidarity to establish a basic structure of society that provides the highest standard of living for every citizen and fairly distributes the national income, curtailing excesses and preventing the exploitation of the vulnerable, elderly and handicapped. Accordingly, this system prohibits charging interest, it is to prevent exploitation and it discourages accumulation and concentration of wealth in the hands of the Muslims. In Islam land and wealth belongs to God and those who possess it must give charity to be distributed to the poor. It would thus prevent the growth of capitalism in the Sudan but on contrary there are millionaires in the Sudan who are the members of the National Congress, Popular National Congress, Uma and Khatmiyas. Thus, the Islamic government in the Sudan in its 16 years of rule since June 30, 1989 has instead promoted wide spread disparities and the poor are being exploited. The Zakat tax 2.5% is collected from the people and distributed to the needy Muslims by the Minister of Social Planning. It is mostly for the welfare of the Arab Muslims and others considered by degree of support to the Islamic government. Dr. Hassan Turabi condemns capitalism as a material system, which demands modern things such as housing, modern TV, music, films drinking, pornography and prostitution. The system is harmful to the Islamic culture. He said the Islamic economic system imposes a change from the capitalist to an Islamic one that provides social justice and equitable distribution of the resources for the Muslim community. He supports the Islamic system in Islam, Democracy, the State and the West 1992, According to Islam property in theory belongs to God and not government. Individuals manage this property and wealth as God’ trustees. The Islamic government must ensure justice and equitable distribution of the resources to the people. Since the country wealth belongs to God, the Islamic government must make it reach the community and distributed equally. Hence, the Islamic economics was introduced by President Nimeri to allocate resources fairly to the Muslim Community in the Sudan. Whether they have achieved after 21 years or not, the people are still waiting to see the justice and equality promised by the Sharia Law under the leadeship of President Omer el Beshir and Dr Turabi both are leaders of the NIF who claim they know Islam more than the sectarian Islamic parties of Uma and Khatmiya.

Dr Turabi said in 1999 that the Koran and Sunna revealed that, “absolute ownership of wealth belongs to God. Every Muslim has the right to the fruits of his labor and exploitation of an individual is prohibited by Koran.” He is referring only to the Muslims in the Sudan that the wealth of the country belongs to them since the non-Muslims are considered dhimmis, second class. The Africans own nothing and have no economic power so they should not oppose the Arab Muslims who have been given authority by God. He once said also that the northern political parties would not develop the South Sudan. So if the wealth belongs to God and every person should get it, Dr Turabi limited it to the Muslims. Thus, any wealth which is acquired by manipulation through tricks of the labor and price is of course illegal and haram. Hence, the Islamic government must remove any inequality or tendency by some individuals to accumulate excessive wealth because it is unholy and Islamic. Islamic government as such is against exploitation and cheating of the people of the Sudan and discouragement of monopoly, which harm the poor, their culture and political life and prefer to practice justice for all. Thus, the Islamic government will regulate the economic transactions and activities which give priority to the promotion of community interests, practice peace and justice so as to uphold the unity of the Sudan. We hold the promised in this law as genuine that every citizen will receive fair income and protected by the state. We hope the acceptance of the Comprehensive Peace Agreement by the government of the Sudan is to do away with the past ills, which successive past governments used for marginalizing the people of the Sudan. But the people of the Sudan are still in doubt of the Islamic economic system, which was decreed by President Nimeri and supported by Dr. Turabi. Dr. Turabi brought Prince Muhammad Faisal al Saud to invest and establish the Faisal Islamic Bank in 1977. The NIF saw that it is the chance to become rich. He employed his supporters to run the Banks and they gave credit only to the NIF and supporters who became rich and acquired materials wealth and today they are the wealthy group in the Sudan. Sudanese do not trust the claim that they brought the Islamic economic system for justice and fair distribution of wealth. The marginalized ethnic groups of Nuba Mountains, Ingessena, Beja and Fur are the poorest in the Sudan and there has been little change in their lives under the Islamic government. They have fought the NIF government because of economic injustices imposed on them. Hence, economic justice according to the Sharia will solve most of the ills of capitalism.

This system operated in the Sudan since the British tookover the Sudan from Mahdi in 1885. It is responsible with the basic development in the Sudan. The Islamists in the Sudan accused the capitalist system as an African Christian economic system built to advance Christianity, materialism and the growth of western economic hegemony in the Arab Sudan. Western Capitalism is a fee exchange of goods and services in a free market. Each individual is free to enter or leave the market. Adam Smiths called it free market economy that tends to allocate the resources to the most valuable use for the advancement of production of quality goods and services. The capitalist owns the means of production and controls the market prices. The consumers the majority poor purchase the goods and services, the more they buy the more profit the capitalists make. As this competition remains unchecked, the inefficient competitors are forced out of the business. The results is a thereat, the rich become richer and the poor become poorer with less help from the state. But when one is in it he or she presses for personal interests rather than of society. The interest of the person is to make money and more money and makes huge profit. He or she may control a larger part of the market by controlling demand or supply and in the due course makes allot of profit. The capitalists have managed to control the world market with massive production of goods and services, which make the monopolists and their Multi Corporation spread in the world. Those who control the selling and buying of the goods and services thus own property or materials and want to own more and more by investing to produce new goods TV, telecommunications, computers and satellite communications. They earn the materialist title of a Capitalist. These transactions do not end in Western Europe but it has invaded the Third world and the Islamists claim that the capitalist are depriving them of wealth, and their products destroy their culture and religion. Therefore, the Muslims believe that the Koran ways of the Prophet Muhammad, in Commerce, trade and economics were better than the modern trade and international trade. They want to combat the ills of Capitalism by the Islamic Economic System of social justice and fair distribution of wealth. This claim does not exclude that the Muslim countries do not have monopolists, they have billionaires also. The Sudan for example has more millions in the National Islamic Front party who got the riches when the economy turned Islamic since 1978, from the Islamic Banks supposed custodian of the Muslims welfare. The Capitalist are accused by the Muslim states of spreading modernization, technology, exploitation, inequality, corruption of the government and they allow the destruction of the Islamic culture and rob the wealth of the Islamic Nations. They must revert to the Prophet methods of running the past government in Medina and Mecca, form Islamic government, Islamic State and Sudan Constitution 1998. NIF condemn Western materialism but we see they own fantastic houses, cars, trucks, trailers, eat nutritious balance diet, have fans and coolers in their houses, T.Vs and seat in wonderful living rooms. So the search for money and materialism in the Sudan among the Arab and especially the NIF continue. This is just a tactic to grip political power and control for materialism, NIF colonialism and imperialism induced

by material wealth. The struggle for control of the riches and land in the Sudan is at the heart of the NIF policies and programs. Hence, the jihad war declared against the poor marginalized areas is for materialism and not for the promotion of Islam. Islam does not preach to dominate and exploit the poor through ethnic cleansing and mass murder to the extent of human rights abuse of millions in the Sudan. The conflict has turned out for the control of materialism the style of Capitalism. This system was in the olden past and still being applied and has made technological progress advancement in the Sudan while the Islamic economics has taken us back to the golden days of the Prophet Muhammad where interest is forbidden. But today issue is not because some traders manipulate higher profits or inflate service charges in order to cover the costs of the interest rates. Hence, the economic principles established by the Bible and Koran some of them are still valid but others modified to suit the current Muslims and Christians adaptation to the environment. The South Sudan believes that the conventional system, which provides free market, will solve some of the problems of South Sudan stagnation.

PRINCIPLES FOR EQUITABLE SHARING OF COMMON WEALTH Interim Constitution, Article 185 Wealth Sharing
Government of the Sudan (GOS) and Government of South Sudan (GOSS) reached the Comprehensive Peace Agreement on the acceptance of the sovereignty, independence and unity of the Sudan and above all the Supreme law in the Sudan is Sharia Islamic law. Without this approach to peace, the National Islamic Front (NIF), Islamic government would have rejected the peace. GOS being an Islamic government believes in the unity of the Sudan because Islam is a unitary, monolithic religion, which stresses for the defeat of the infidels and taking their lands as booty. The Islamic government thus is assured sovereignty and governance with an Islamic government and establishing the Islamic State. SPLM is thus given the South Sudan government as an autonomous government in the meaning of the NIF charter. Wealth Sharing is on the basis of equal distribution articles 1.2 and 1.3 so that the (GOSS) and (GOS) will discharge its socio economic development duties for their respective areas. In the New Constitution, Wealth Sharing 185 (1.4) shall be on the basis of, The sharing and allocation of wealth emanating from the resources of the Sudan shall ensure that the quality of life, dignity and living conditions of all the citizens are promoted without discrimination on grounds of gender, race, religion, political affiliation, ethnicity, language, or region. The sharing and allocation of this wealth shall be based on the premise that all parts of Sudan are entitled to development.

The National government and the Government of the South Sudan have agreed to address the development.issues on this basis. We hope that the National Congress administering in the centre will abide by the agreement and not silently apply the Sharia. Land issues and Oil Sharing and Management of these resources, article 2.1 ownership of these not addressed including the use of the Nile water and digging of the Jonglei Canal. This Nile water is the source of development for Northern Sudan and Egypt. The Economic and military development of Egypt depends on the River Nile. Egypt has built many dams and the biggest is Aswan Dam all preserve water for irrigation and generation of hydro electric power to serve the industrial, private sector and housing. The Northern Sudan too has big Gezira, Rosoreires, Merowe and Kajbar Dams and the latter under construction to produce electricity for the industrial, private sector and housing. But they deny the South Sudan, which receives the River Nile first and passes through its territory. So the hope for South Sudan to develop is held hostage by both Egypt and Sudan an attitude of aggression and imperialism. The imperial control by both countries of the South Sudan prevents it from any progress. The north and Egypt treat the River Nile waters as their own property and deny the South Sudan its share. However, the Distribution of revenue collected is usually on the basis of the population ratio, tax collection effort and the size of the income of the State. But the formula used is complicated and its computation requires persons who can translate it to allocate the exact revenue for each state. Sharing of oil Revenues. Before we present the Sharing of wealth, the oil Contracts article 4.2, although we cannot cancel them but those involved in the encouragement and aiding of ethnic cleansing and commit atrocities, when their contracts come to an end should not be renewed. The GOSS should review the employment policy of the oil companies and note the composition of the work force. The local people were marginalized due to imbalance discrimination policy of recruitment into the oil industries created by Presidents Jaafar Nimeri and Omer al Beshir. The formula for the net oil revenues article 5.3 says Net revenue from the oil shall be the sum of the revenues (1) from exports of government oil and (11) from deliveries of government oil to the refineries. Thus, Exports of government oil (FOB) less delivery and management charges + Export of government to refineries (FOB) prices less delivery pipeline charges and management per month. Another expense is the establishment of Revenue Stabilization account in which some fund shall be paid. Therefore, after payment to the Stabilization account and the 2 % to the oil producing state the balance, which shall be 98 %, is divided between the GOSS 50% and National Government and northern states 50%. To obtain figures for verification and know exactly how much revenue is due will be a tug of war because the Islamic government would not like to subject itself to an infidel government for accountability. Non oil Revenue National government in article 7.3 has agreed to allocate 50% of the National non-oil revenue in the South Sudan to meet development cost. Unfortunately the revenue would be little due to the fact that the business enterprises are lacking and the revenue shall come from government employees, personal income taxes, customs and excise

duties, airports revenue. Custom Duties and excise tax may increase if imports through the Mombasa port to South Sudan are stepped up. This article gives an impression that the South Sudan has businesses and corporate sectors that will earn taxable income during the interim period. This said the National government should not lift its responsibility just because in theory those taxes listed and their revenue do not contribute the expected revenue that will solve the economic problems of underdevelopment. As stated in article 7.1, all revenue collected will be paid into the national Revenue Fund (NRF) and from there the national government distributes to the two states, South Sudan and northern Sudan. The national government agreed that the 50% of the revenue collected in the South Sudan cannot be paid into the National Revenue Fund and is given to the South Sudan. The revenue collected to the National Treasury is guaranteed because the sources are available. The National government revenue collected in the north is 100% and may pay 95% to the northern states. The 5% of the National government if paid to the Government of the South Sudan may be the same as 50% of the non-oil revenue agreed to the South Sudan. Of course, this would be less and unfair as the ratio for 26 states would be 3.8% for each state. We have 10 states in South Sudan 3.8% X 10 = 38%, the ratio of the South Sudan. This if paid from the National Revenue Fund is greater than the 50% from the non-oil revenue from the South Sudan. Hence, the total revenue of oil and non-oil revenue will still be inadequate to meet the cost of development. The South Sudan is disadvantage unless the Grants and foreign assistance reaches the South Sudan soon. In article 1.3, which is the most important, the obligation to realize responsibility to release and transfer funds to the (GOSS) is crucial. Financial Allocation and Monitoring Commissions have a great task to deliver justices and equality in a country which had been torn apart by past Financial Ministers and Presidents because of discriminations. The peace needs tools for maintaining peace, which are money for development, and reconciliation and forgiveness. Hence, to make the unity attractive is to release and transfer funds to the (GOSS) so as to implement its reconstruction and rehabilitation of the South Sudan. Although Wealth sharing article 1.4 promises not to discriminate by Islamic religion, political, ethnicity, language, culture, economic, commerce, trade, This is so because Sharia is supreme law of the land, any disputes will be referred to the Constitutional Court which is Islamic Court in Khartoum or Juba. In order to the peace to succeed, the wealth sharing agreement article 1.7 advocates the National government to raise the standard of socio economic and public services to the same level as northern Sudan. It is not likely to happen soon as hoped for in the agreement. The North with its strong base of economic development, so many industries, hydro electric power, and huge agriculture irrigation schemes, agro industries, and textiles industries etc. The north will not wait for the South Sudan to develop but will make the South Sudan as a market for dumping goods and suffocate the South Sudan growth. In the Protocol for Power Sharing, article 1.4.3 that the (GOS) and (GOSS) will promote and protect the Human rights and fundamental freedoms, of course the right to peace, security and socio economic development of all the people of the Sudan will depend on peace. In article 1.3 of the Wealth Sharing Agreement, the National government is entrusted to fulfil its role to transfer funds to the (GOSS) so as to achieve article 1.4 high standard of living without prejudice and discrimination on grounds of religion and politics. The National government is already discriminating on the grounds of religion. Islam does not separate itself from economics, culture, political, social, trade…. Everything in life is connected with Islamic religion, social, cultural and economic etc. The

Islamic government is ruling by Koran, Sharia Divine Law so it should cease to choose and discriminate in the allocation of resources. It shares its Wealth in accordance with the principle of Sharia, the Muslims who are superior first and the non Muslims last. When the National Petroleum Commission (NPC) article 3(a), the President of the Republic and President of South Sudan GOSS shall CO - Chairs to solve problems concerning oil revenue distribution. Unfortunately when there is disagreement and the President of the Republic will give a final veto which automatically in favor of the Sharia consensus. Hence, the GOSS would be left to complain while the revenue flow to the north or contract not altered to affect employment-giving priority to the area. The Khartoum governments had used before Sharia and discrimination in disbursing development funds to the South. The lagging behind of the marginalized areas is because the Islamic sectarian leaders discriminated by race as Africans and non-Muslims who are considered by the NIF and Islamic sectarian parties as slaves and just supporters. If they are made to build themselves to our level then we will not be in power and establish Islam. The northern politicians are wondering that the 50% share for the South Sudan is much and should be reduced. The National government has many other sources of revenue and thus its share of the total revenue in the Sudan is more than 50%. Of course if the National government fails to release the funds, in the just Constitution, the nonrelease of funds could be taken to the Constitutional Court. If the Judge is an Islamist he will rule in accordance with Sharia. And, if he is a non-Islamist he will rule justly. In the recent appeal to the International Community proposal for funds, the European Union for post construction and reconstruction assistance to the South Sudan, some areas were excluded due to dubious reasons. The South Sudan needs justice and equality in the distribution of funds and their releases. To meet the cost of the reconstruction and rehabiltiation of schools, churches, mosques, roads and bridges, which have been destroyed during the war the National government has to pay for the bills since it destroyed them. There is no part in the South Sudan, which has not suffered, and its assets destroyed by the Central government. So the article 11.1 division of local assets and imported assets through Port Sudan had been difficult because Khartoum government is an obstacle to just distribution and dispatching the allocated plants and materials and funds to the respective areas. The NIF are in the government; they are of the ruling clique and apply Sharia. They will adhere to their charter objectives and rules of Islamic economics between Muslims and non-Muslims in accordance to Koran Sunna and Sharia.


Interim Constitution, Article 201 Dual Banking President Jaafar Nimeri had introduced Islamic Banking in 1978 in the progress towards the decrying of the Sharia Law in September 24, 1983. The Sudan Socialist Union of government of President Nimeri had economic problems of corruption and mismanagement but was blamed on Western Capitalism. Dr. Turabi who was close to Prince Faisal Abdalla who wanted to spread Islamic fundamentalism found him ready to finance him. Dr Turabi therefore induced President Nimeri to decree the establishment of Islamic banking so as to erase corruption and mismanagement in the capitalist system. President Omer al Bashir became the strongman and forced Islamization and implementation of Sharia. Banking system is not only mentioned in the Koran but also in the Bible. In the Koran Allah says, Those who devour usury will not stand except as stands one whom the Evil One by his touch has driven to madness. That is because they say: “Trade is like usury.” But Allah has permitted trade and forbidden usury. Those who after receiving direction from the Lord, desist, shall be pardoned for the past; their case is for Allah to judge: but those who repeat the offense are companions of the fire: they will abide therein for ever. Sura 2 verse 275. Allah instruction is against charging the rate of interest, it is forbidden and any Muslim or ruler who gives concession for the charging of this is a kafir and a sinner. The Islamic government may give the South Sudan to charge interest rate in the Conventional Banking system during the interim period but this concession for the South Sudan cannot be permanent but as the agreement stipulates that the South Sudan is one country, and the sovereignty is granted to Muslims article 4, Sudan Constitution of 1998. The Islamic ruler in Khartoum is surely bent to cancel the agreement, as its contradictions between Sharia and secular views become apparent and clash. The Islamic Civil Transactions Act of 1992 prohibits any kind of taxation with Islamic Sharia Law. Islamic taxes only should be banked in the Islamic Banks others not in line with Sharia are forbidden. Dr. Turabi said in the Middle East Policy Vol 1, No 3, 1992, “What it seeks, for example, in the practice of Islamic Banking, is the active participation of jurists as Bankers who will informally monitor Banking practices as to whether or not they are in accordance with Islamic law, forbidden, desirable or recommended.” Hence, all financial transactions must abide with the Islamic law in the Sudan but since the law was passed for the whole Sudan it requires amendments that the Islamic jurists will not interfere with the financial transactions of the South Sudan. Why impose jurists in the Islamic Banking is to control financial resources, which cannot be segregated from the religion. Financial resources are necessary for employment, structuring the society and socio economic development. If the jurists discover that money has been received from abroad for South Sudan that contains interest, how would the jurists treat these forbidden financial transactions? Without proper recommendation the jurists may reject to pass to the South Sudan.

In the Old Testament it is recorded that, You shall not demand interest from your countrymen on a loan of money or of food or anything else on which interest is usually demanded. Deut 23: 20 However, interest on loans to foreigners was allowed. But Prophet Jesus repeated that in the New Testament, He prohibits also the charging of interest. Jesus urged the people to lend without interest, he says, But rather, love your enemies and do well to them, and lend expecting nothing back; then your reward will be great and you will be children of the Most High, for he himself is kind to the ungrateful and the wicked. Luke 6:35 Even Jesus condemned the charging of interest as in the Koran. The poor are not to be exploited by charging interest. Those Christian leaders therefore for charging interest make the problem complicated since Adam Smith. Adam Smith said in order to make people competitive to one another and make progress in the modern times, charging interest make people to work harder and progress. The Muslims are blaming secularism and democracy as sources, which lend support to capitalism and demands for materialism at the expense of faith. Spreading capitalism means the destruction of their Islamic culture and economic life. Despite this similarity, the Muslims condemn capitalism as a Christian system and source of the problems of exploitation because of charging interest rates and huge profits. Islam preaches social justice and fair distribution of wealth. Inspite of both religion beliefs Christianity is accused of encouraging materialism and exploitation of the people. Dr Turabi tells the Sudanese that Islam rejects charging of interest, riba on loans. Capitalism is also accused of making huge profits on production and business. Interest on loans is forbidden in Islam but in Sudan is tolerated and called profit or service charge. Prophet Muhammad teaching was against charging of the interest rates, exploitation of the Islamic Community. Thus, the possession of materials wealth is unjust in Islam but slavery is allowed and the South Sudanese are the tools of economic development for the north. The (GOS) and (GOSS) agreed to establish the Bank of South Sudan (BOSS) during the interim period article 14.2. The Central Bank of Sudan (CBOS) will operate its part, solving problems of Islamic and Conventional Banking which are complicated with Sharia law interest free, forbidden imports and foreign exchange. Thus, free enterprise, which is capitalism, will operate in the South Sudan. The Banks in the South Sudan will charge interest on loans advance to its clients. The Banks of the South Sudan will have separate regulations and rules but obey the monetary policy of the Bank of Sudan. But the money will have interest in South Sudan and will circulate in the country. In the Wealth Agreement on Wealth Sharing article 14.1 both (GOSS) and (GOS) agreed for the establishment of the Islamic Bank in the North and Conventional Bank in the South Sudan. In article 14.2 both agreed to implement a single monetary policy in the Sudan and therefore establish in the interim period the Bank of South Sudan (BOSS) as a Branch of the Central Bank of Sudan (CBOS) to implement the financial regulations and instruments. Thus, article 14.3 establish a single monetary policy where (i) an Islamic financing window in northern

Sudan under a deputy governor of (BOS) using Islamic financing instruments to implement the National Monetary policy in the Northern Sudan. Therefore, the deputy Governor of the BOSS will have to adhere to Islamic Instruments of Banking too. So in the Islamic bank there will be no charging of interest because it is haram and in this Islamic window, the Ulema jurists will supervise scrutinized the Bank transactions to make sure that the funds, loans or credit flowing from Western Europe and non Sharia Muslim countries are interest free and confirm to Sharia. They will prohibit the illegal transactions such as funds from the non-Islamic Nations, which contain interest rate. The transactions must be strickly compliance with Sharia law. Hence, such western investments for wine and spirit industry, music industry, TV and Radio Broadcast Music or production of DVD or some medicines in the South Sudan may be restricted. Secondly, (ii) the Bank of Southern Sudan (BOSS) would be headed by a deputy Governor who will run a conventional window using conventional financing instruments. In this window the transactions of investment and credit will be without or with interest from all International Banks, Corporations and countries of the west and Arab countries will be received and used for the projects applied for. I prefer that all funds and foreign aid from the West should be channel through the Bank of South Sudan to avoid uncalled for conflicts and methods. The criteria should be any funds received by the Islamic window which contains interest should be passed to the Bank of South Sudan and the Nations that are willing to give aid to the development of the South Sudan are to send directly to the Bank of the South Sudan at Juba. The Central Bank of South Sudan will be independent of the Central Bank but has to confirm to the instruments and regulations of the Bank of the Sudan. But articles 14.10 and 14.4 clearly states that the Central Bank of the Sudan (CBOS) shall be responsible for the chartering and conduct of the monetary policy and article 14.5 gives the overall responsibility to the CBOS price controls to keep stability, exchange rates and issuance of Currency. The South Sudan article 207 of the New Constitution has been applied and New Sudan currency is issued but the new currency has been issued with one serial number and may be corrected. It is fiat money legalized by the GOSS in agreement with the National government. The new currency may be replaced soon with Banks of Sudan notes when the people of the South Sudan are willing to unite and pay for the common services. New Sudan currency issued by GOSS is good money because it is based on the standard value for our labor, services, wealth and store of wealth. The South Sudan has gold, diamonds, water resources and oil to back up the money although the paper modern money needs no backing. It is likely to be a stable value in purchasing power and acquisition of goods and services. The most important thing is the people of the South Sudan have accepted it as medium of exchange in payment of goods and services and in settlement of debts. It is also a legal tender in the New Constitution article 14.9 in the Wealth Sharing demands that the currencies circulating in South Sudan be recognized by the national government. The SPLM Spokesman George Garang argued that on December 2, 2002 that the new currency, “The currency, known as the New Sudan Pound” is a part of a plan to introduce a suitable secular financial system for the non Islamic Southern part of the country, as opposed to the Islamic Sharia system being utilized in the north.” In this contentious issue the Sudanese Ambassador to Uganda Sirjudin Hamid replied that,

“You can’t have a currency if you do not have a Central Bank or even a state recognised by the International Community.” We have the state of the Sudan, which has given recognition to the Comprehensive Peace Agreement CPA and recognized and witnessed, by many countries. The circulation of two Sudanese currencies is not a new idea to the Sudan. During the colonial time and under Mahdi in 1885, there were several currencies, Mahdia Sudanese Omla Gedida dollars, Maria Theresa dollars, and Turkish and Egyptian pounds. Now the 11 European countries in 1999 have Euro dollars as one currency for Europe but the individual countries are still circulating their currencies, British stirlings, French Francs, German marks etc. These countries policies differ on monetary policies, unemployment, growth rates, foreign exchange rates and balance of payments. Therefore, they want to maintain their monetary and fiscal policies to tackle their different problems. As long as they are free to unite, they will find a suitable time for one Central bank and Euro dollar the only currency for them. The Central Bank of the Sudan must allow the South Sudan Bank operate without the Islamic Sharia affecting it because the circulation of money in both countries is likely to affect the commodity and capital markets. We are aware that the CBOS may find it difficult to maintain the common macropolicies and foreign exchange across border trade with our neighbors and northern Sudan. However, during the Interim period the new Sudan currency is likely to mobilize the old dilapidated old Sudanese currency and give those who possess them a chance to exchange with the new Sudan currency being printed by the Central Bank of the Sudan. If the new currency is back up with goods and services it can be recognized and converted by the International community to any currency. There are contradictions even if the Minister of Finance ignores not see them affect the two Banking systems. Some of them include the foreign currency restrictions’ traditional banking system is considered as impure, Sharia charges no interest, the National government may not release foreign currency for companies that are associated with production of alcohol, tobacco, some medicine, commercial insurance, day trading and speculation, stock buying and selling at high or low prices, political enforcement of Islamic state and discrimination of citizens for employment.

The Two-tier system is authorized to issue currency under the supervision of the Central Bank of Sudan, which puzzles Sudanese. But let us hope the system will function without the Islamic government reacting against it. Thereafter the Governor Bank of Sudan will issue Sudanese currency that will be used through out the Sudan. We hope the Governor of Central Bank will be able to control these currencies at par without runaway inflation eroding the South Sudan eco apacity. The CBOS has to apply measures of monetary policy to control the unitary economy, supply of money and control of money supply to tune it to the changes in the economy of both states. The CBOS has to control the South Sudan economy using interest rates because the price of money is interest rate or service charge and that controls credit allocation to influence the overall micro and macro economic activity. When interest rates are high the money is expensive and when low the money is cheap. Thus, changes in the interest rates in the South will affect both economies.

Both GOSS and National government need foreign exchange and the rates will be fixed by the Central Bank of the Sudan so that the exchange bureaus would follow them. We belief that the balance of payments if any would be difficult to assess and to pay, the South Sudan will face deficits even if the oil exports might supplement. The New Sudan currency may attract the flow of foreign currency to the Central Bank but it is another problem to be issued foreign currency to pay for imports of South Sudan. Fighting inflation is a dual issue between the GOSS and GOS. Inflation causes instability in the micro and macro level any average increase in the price level affects the consumers and alters income and wealth. If the price rises or reduces to control inflation, it shifts income from one group to give to another. South Sudan will suffer from price rise as said there is no industrial production and goods and essential goods are imported from the north Sudan or East Africa. What will the Deputy Governor Bank of South Sudan do? Because the traders are out there to siphon off the money in the South Sudan and exchange it into foreign currency and transfer to the north and abroad. So the Islamic Banking system and the conventional system will contradict each other and the weaker economy will suffer. The Minister of Fianace Dr Zubeir Mohmammed al Hassan when interviewed by Khaleej Times on 5 July 2005 about the Wealth Sharing Agreement, he said, The Central Bank of Sudan is building up manners which enhance its role in controlling the national monetary policy he added in the Islamic Banking system we are controlling monetary fluidity through the bonds which based on the Islamic Sharia and played very important role in the open market where these bonds pumping or controlling the monetary liquidity. These bonds are called the sharing bonds and the owner of the bonds or stocks are participating in such kind of bonds and the other one is depended on the due date of the contracts. Southern states can as well issued bonds but rely on the international banking system which depends on the interests (profits) but both of the two systems should coordinate with each other specially in the revenues of the Islamic bonds and the fixed interests in the traditional system and they can help in supporting each others and that is what is applied in most of the Gulf countries and as well in the Arab world. Governor Central Bank of the Sudan effects control of the money supply for South Sudan by advising in a circular letter to the South Sudan branch bank to increase or reduce money supply, requires the manipulation of the tools of monetary control, Increasing money supply,  Lowering reserve requirements, CBOS issues reserve percentages,  Reducing interest rates, BOSS fixes the interest rates accordingly,  BOSS buys bonds Decreasing money supply, BOSS does the opposite,  Raising the interest rates,  Increase reserve requirements  Open market operations, selling and buying of securities/ bonds  Increasing or reducing the exchange rates

If the CBOS solely keeps advising changing the interest rates, lowering and raising them, the South Sudan economy will be affected since the equilibrium of the interest rate will keep shifting the demand and supply of money. So the public may hold bonds in the bank, the Central Banks advises South Sudan bank to buy Islamic bonds (money) from the public and increases the flow of deposits to the banks. When the Central Bank advises BOSS to sell bonds, it reduces the flow of deposits and therefore bank capacity to lend and restrict investment in the economy. South Sudan will benefit from reduce interest rates because will increase money supply and encourage investment. If the Central Bank Governor is upset with the rapid growth of the South Sudan economy may increase the interest charges. This will cause decline in the economy and discourage spending of money, reduces money supply and government selling of bonds. Therefore, the restriction of interest rate by raising it will reduce money supply and aggregate demand, so the businessmen will reduce investments in the production sector since the profits will decline. The effective absence of Minister of Finance of the South Sudan from the National government takes us back to the problems of delays, dodging and lack of implementation of the South Sudan releases and financial measures necessary for controlling the economy. The National government, since interest rates are forbidden in Islam it will control the Islamic monetary and credit policy to control liquidity, inflation, maintains flexibility of the exchange and avail resources for the banks to finance the public and private sector. The tools for money supply control by CBOS are    . Reserve requirements set by circular letter, Financing windows, open market operations, selling and buying of Islamic bonds,

Setting of minimum rates and foreign exchange operations. CBOS securities, buying Central Bank Musharaka CBM, and Government Musharaka Certificates GMC and Mudaraba and others certificates bonds based on share holders share of profit and loss, issues Participatory Term Certificates that increases money supply and raises the reserve in the bank and authorizes expansion of lending ability of the banks to the public. Thus, open market operations will increase reserve deposits for investments in the economy. Alternatively it can sell bonds to reduce reserves and empowers the banks to reduce loaning the funds to the public. This act will curb investment in the economy. So the changes in the bond prices, selling bones at high prices will induce the participants deposit some or all of the income in their bank accounts. This will reduce the bank reserves. CBOS buying of the bonds will increase bank reserves in the banks and lend the loans to the public. The contradiction is Central Bank strictly force the Banks to comply with Sharia financing modes of investment and banking services. In order to do away with interest rates, the CBOS has allowed the Banks to determine Musharaka percentages, management remuneration margins and Murabaha credit limit of 30% per annum. Therefore, the controlling of the two economic systems and regulating the monetary supply requires that the tools are quickly selected and timed to apply so that the price level, aggregate demand and supply and equilibrium of the interest rate is maintained. Will the two economies behave progressly at the same time in order to control inflation? Thus, the control of money supply will depend on CBOS Governor to

regulate bank reserve and lending of the two economies of the northern and Southern and international trade. Removing contradictions in the two economic systems requires constant monitoring and resolution. We need to watch the National government ideology of Islamic economics. We should not think that the state is the primary initiator of the development and depends on the north advice. We have to watch the state application of control on prices, exchange rates and interest rates. Price increases inflated by Central Bank may affect the economy including the South Sudan, which is tied to the national economy through the Central Bank Controls. If the north increase the prices of essential commodities that will force black market and affect the South Sudan economy since the supply of goods and essential commodity flow from the north to the South Sudan. The Deputy Governor Bank of South Sudan (GOBSS) to make sure that the foreign currency obtained through the international aid from non Muslim states is banked into the window of South Sudan Bank. This foreign exchange should be used for development of small and medium scale industries instead of promoting the consumption of goods encourage by the jallabas businessmen recommended by their Ministers of Finance and Commerce respectively. The Deputy Governor Bank of South Sudan should channel the foreign exchange to encourage productive areas of our economy such as agriculture, cooperative organizations, small and medium grinding mills, oil mills, micro hydro generation, Article 14.7, gives the appointment of the Governor Central Bank of Sudan and his two duputies appointed by the Presidency. The President as an Islamist wills appointment those who will implement the Islamic principles rules in the Islamic State. To say that the Presidency will give equal weight to the secular conventional system is being biased to oneself. Also the Board Members of the Central Bank of the Sudan shall contain Jurist Islamists to protect the Sharia Law Banking instruments. The Islamic Jurists will always work in defense of the Islamic Banking unless the Bank of Sudan advises the donors and those countries that wish to send funds to direct to the Central Bank of South Sudan to do so. In this way, the conflict might be minimized. The Islamic window will be a source of problems that will call for intervention from the President and the Islamic jurists. If such a conflict exists we fear that the President or Governor Bank of the Sudan will resolve in favor of Islamic Sharia Law. So in order for the aid or credit to reach the projects in the South Sudan, the European Union, Asia, America and the Arab states should send the funds directly to the Central Bank of South Sudan and Nile Commercial Banks, Equatoria Commercial Bank and others in the South Sudan. All along the problem of financial releases to the development projects in the South Sudan had been a struggle between the (GOS) and the (GOSS) for the resource allocation. If the north has not got their share or shortage of funds, dhimmi should get the bones but the hyenas may finish the bones before they reach the South. Although the agreement has been clear there are fundamentalist who believe that the blacks are the slaves of the Arab people. Slaves are therefore good because they give free economic labor. Islam has made it clear that the infidels in the dar al harb are second class people and receive distribution funds when the North Muslim parts have received. In B, Borrowing 14.13 – 14.16 (GOSS) shall borrow funds, and 15.1 South Sudan Reconstruction and Development Fund (SSRDF) will solicit and raise funds from the domestic market and International donors. The Central government will try

to intervene in order to distribute the funds so as to control the (GOSS) and state governments. The National Reconstruction and Development Fund (NRDF), established by the Treasury for the Reconstruction and Development Fund, the Central government will allocate funds according to who supports the existence of the government in power, and C. Multi-Donor Trust Funds, MDTFs one for the National government and one for the South Sudan. Again, the flow of the funds to these development projects will receive some negative judgments, as the north wants to continue with the lopsided development in order to convert more Africans on their side to clap hands while they divert their resources elsewhere. Dependence on the aid to come from abroad is proving difficult because the Secretary General Kofi Anan reported that the bill for peace for Sudan $4.5 billion. So far the donors are not forthcoming to meet their promises. There is delay and the countries concern is weighing in accordance with their interest. Our alternative is to depend on our migre resources and start to move forward without wavering. In addition, article 117 of the Sudan Constitution, limits the state authority not to interfere with the federal constitution and appointment of the personal and their function. If the President appoints the Chairpersons of the Commissions in the Wealth Agreement they will pay their allegiance to the President or Central government. They had in the past crippled the decisions and releases of the funds to the Regional government of the South Sudan, President Abel Alier and President Joseph Lagu governments were disappointed and angered by the North. The Central officials ignored what was agreed by the Addis Ababa Agreement 1972 released of the funds for development, payment of salaries and wages for schools, hospital staffs and army, police and warden were held; just to drive the people of the South to rebellion. We hope such practices should not be repeated and encouraged by the Islamic sectarian parties because these are the sources of violence and not for keeping peace.


Interim Constitution, Article 198 Fiscal and Financial Matters Money is recorded in the Bible and the Koran long ago although Koran recognized barter transactions of equal value. The Muslim nations accepted money because barter and carrying of gold and silver became burden some so they opted for paper money. Fiscal policy is as old as the Koran and the Bible too. The Islamic government changed the Sudan monetary system and made coins that depict Islamic colors and design in accordance to Sharia. Budgeting in Islam is for development, employment, social structuring and control of financial resources are important for an Islamic state. The Islamic government or sectarian government will budget including items recommended by Koran while the non Islamic budget may include items forbidden by Islam. So the administrators should be able to compromise and reconcile the money transactions and movement of money between north and South

Sudan even with Islamic and non Islamic taxes. The Muslims in the Sudan are graded northern are given top priority and Africans last respect. Taxes were paid by the Kings and advocated by Prophets Jesus and Muhammad in their different states. The taxes were paid to the Emperors and Sheikhs for running the government, paying state officials, servants and services. In the Bible Jesus said, “Repay to Ceasar what belongs to Ceasar and to God what belongs to God.” Mathew 22:21 This was to teach the people that paying your taxes was good for the management of the state. Islamic government under Prophet Muhammad received taxes from the faithful for running the Islamic state and the most important is Zakat, Alms are for the poor and the needy, and those employed to administer the funds, for those whose hearts have been recently reconciled to the truth: for those in bondage and in debt in the cause of Allah: and for the wayfarer: (thus is it) ordained by Allah: and Allah is full of knowledge and wisdom. 9 verse 60 Clearly, the Zakat from the Koran is implemented; the Islamic government passed the article 10 to fulfil Allahs Law. The Zakat is distributed in accordance with instructions of the Koran. The non-Muslims in the South who are poor may not get little of the Zakat funds. In article 42, the President is the highest sovereignty authority in the nation; hence any administrative dispute about financial releases, loans, donations and foreign aid, may be referred and resolved by him and Minister of Finance. Deciding between Islamic belief and political will face them. Therefore, they will favor Islamic decisions and deprived the people of the South Sudan of vital funds for development. An Islamic government is an ideological and serves to implement the Koran and Sunna principles of economics for social justice. The Islamic government executive proposes laws and the legislator’s only advice as Dr Hassan Turabi controlled the parliament. The legislators vote in parliament according to their faith and not political party line, Islam is the priority to conform to Gods Laws. Islamic Sharia is a divine law and its attributes is a benevolent and compassionate. It is to spend Zakat on the poor, fugara and the resident maskin and for conversion to Islam. It is for liberating the slaves and prisoners of war and relieving those indebted and those struggling in the path of God. The Islamic government claims that state income should be distributed fairly, forbids cheating, hoarding and squandering of the resources. It guides social justice in the community but this is easy said than done to all people of the Sudan. Its plans the National Government budget by taxing the people and as mentioned above zakat was included in the Islamic Constitution to transfer of wealth to the poor. Article 6.1-11 of the Wealth Sharing Agreement and the (GOSS) is entitled to revenue in accordance with article 6.2 taxes in the same agreement. The Budgeting by GOS is on the taxes allocated and collected but it has additional Zakat religious taxed, which is budgeted only for the Muslims and distributed to the Muslims. In the Sudan Constitution of 1998, article 10, Zakat and Other Financial Obligations,

Zakat is financial obligations collected by the state and its collection, expenditure and administration shall be in accordance with the law. Inheritance (wagf), donations and self-help are voluntary but encouraged by the State in accordance with the law. Taxes, financial transactions, fees and other financial obligations are subject to the law. This article specifically mentions Islamic Zakat as one of the five pillars of Islam. Dawa Islamia Institute receives the Zakat Revenue and distributes in accordance to the Sharia Law, mainly for building the Mosques to give to the Muslim poor, fugara, for conversion into Islam and paying scholarship to needy. The non-Muslims will not have access to the funds unless he or she is willing to convert, but often force to do so. . It is clear that the Sudan Islamic government charges Zakat and other taxes in accordance with Sharia Law and spends on the Muslims and Islamization of the people as mentioned earlier in the text. Hence, the Ministry of Planning and Finance and Dawa Islamia distributes to the Muslims and non-Muslims who do not accept Islam cannot benefit from the Zakat. The Islamic government claims that its fiscal system transfers wealth from the rich to the poor and the burden of taxation fall on the rich. In the Sudan, the Zakat is obligatory and all Muslims pay it. Since there will be Muslims in the South the distribution of the funds to the poor and its use may cause a problem because some poor are excluded. Will the Muslims not pay double taxation? Or will they not reject payment of the so-called Christian taxes, which raise taxes and hurt the people? So the distribution of Zakat to the population becomes an issue since the Muslims will become richer than the non-Muslims. National government will collect revenues due to it and these are pooled into National Revenue Fund (NRF) administered by the National Treasury. In article 7.4, the National government and (GOSS) will appeal for funds for the post conflict reconstruction of the South Sudan. However, the National Khartoum government assumes that the (GOSS) immediately will forget since they will be robbing the scrabs, which fall from the center. National Minister of Finance will roam the International scene seeking funding for the projects in the South Sudan and funds disappear in the north. Although article 14.15 states that the (GOSS) can borrow funds from the international community and sign agreements, the National government may not accept to compromise its sovereignty to the many federal states including the South Sudan. In article 15.3 (GOSS) raising funds from abroad and banked in South Sudan Banks. The officials of the (GOSS) must transact these funds which contain interest haram to Islam. We fear the Muslim officials may block or divert the transactions. It is the responsibility of the (GOSS) to follow all financial transactions of South Sudan. Thus, the redistribution of income has to balance rather than continue we do not care policy. FISCAL AND FINANCIAL ALLOCAION AND MONITORING COMMISSION (FFAMC) Interim Constitution, Article 198 Fiscal and Financial Allocation In order to supervise that the allocation and releases of the funds to the (GOSS) and states, the Fiscal and Financial Allocation and Monitoring Commission (FFAMC) will ensure the funds from National Revenue Fund and equalization grants are transferred to the South Sudan and the respective states articles 8.2.1, 8.2.2, 8. 2.3

And 8.2.4. These articles ensure the fair, transparency and transfer of funds to the (GOSS) by the National (GOS). The FFMC article 8.3 is bulky with about 32 members of the Committee will produce many problems associated with attendance, transportation, accommodation, quorum and allocation rations not conforming to population size. It is interesting to note that article 8.2.4 has not established ratios or percentages for the states to receive from the National Revenue Fund (NRF) the money. One wonders when will the Islamic sectarian parties and the past respective Khartoum governments that have been frustrating the efforts of the Regional government of South Sudan, by rejecting to transfer the financial allocations to the Government of the South Sudan. Despite, the claim that the Islamic rule is for justice and equality, this has not worked judiciously. The President and Minister of Finance consult each other to give personal approval, verbal or written. It is not automatic through the Financial Allocation Commission to transfer the funds because the Finance Minister will demand to know the distribution and reprove from the President again. The allocation by the Financial Commission should be final and only implemented by the officials of the Ministry of Finance. This decision to see the releases before remitting the money to their respective states is undermining the Financial Allocation Commission. The (FFAMC) will be appointed in such a manner that it creates the policy of divide and rule and the Muslim jurists will take over its control. The (FFAMC) members will be composed of National and (GOSS) and states. All Commissions will be composed of the members from the (NIF) Islamists and non-Muslims but the chairs may be Muslims. The Chairperson of the Commission may be a Muslim jurist to implement Muslim policies in the committees. If there is the will for justice and equality because this is a religious government, we hope there will be less problems of the transfer of funds to the states. We suggest that the states will be listed in their alphabatical order and the funds are sent in that order to avoid queries as to why my state was last to receive it’s funding. In a Confederal arrangement, the states should contribute their revenues to the National government at least 25% and not the National government to control the revenue and the finances and distributes to the states. The national Minister of Finance if they are staunched supporters of Sharia Divine law, he would cause conflict in the administration and releases of the funding of the states. But if we have two-state solution, the states would have separate economic systems and may negotiate common services such as transportation, communications and perhaps joint use of the River Nile shipping. As in East Africa, the states may negotiate joint custom union, markets and monetary unions for promotion of their cooperation and movement towards confederation and economic progress. Thus, the articles somehow show some fairness on the paper distribution but when it comes to implementation the National government the NIF, the Uma or Khatmiya Ministers of Finance have been delaying, dodging and rejecting to release the development funds and even salaries and wages of the employees. This is the policy to coerce marginalized areas to support their respective Khartoum governments, which come to power. Therefore, the monitoring of the revenues and financial releases depend on the consciousness and will of the President, Finance Ministers and members of the Commissions. If they choose to deny the other states of their rights and justice, the people, politicians and the press should act and stop further injustice.

Financing the transition requires will to commit to releasing the funds articles 15, 15.1, 15.3 needed by the South Sudan Reconstruction and Development Funds (SSRDF); the national government shall establish b. the National Reconstruction and Development Fund (NRDF) purpose of the fund to develop the war affected areas without preferences. c. Multi Donor Trust Funds (MTDTF) one for the National government and one for South Sudan to support recurrent and investment budgets. It will revert to South Sudan Reconstruction and Development Fund for the Interim Period. This being said and reliance on International Community to donate the funds especially through-United Nation has proved not easy. These funds when made available, the National government may divert to complete or restart new projects so that the north is ahead of development and the South becomes the commodity market for the northern production. So the expected funds for development must come first from the National government. The National government and the GOSS should create stability and assure the world community that the funds will not be used to fund corruption, conflicts and consumption, ought to be for development.

Interim Constitution, Article 206 Inter state trade A. GENESIS OF TRADE
Merchants in the past traffic in the ancient Palestine and sold their goods in open markets or bazaars in the cities of the Mediterranean. In the past Tyre in Israel had the most active trade by ships to the Mediterranean areas. Although Allah has not left the people without guidance about good trading and harmful trade which was conducted throughout in the Saudi Arabia since the time of the Prophet Muhammad, the Bible and Koran have provided the basis of trade. The Muslims traders in northern Sudan put aside Koran conducted illegal trade charging interest in 1950 to 1983. The trade of Arabia and all the Sheiks of Kedar belonged to you: they dealt in lambs, rams, and goats. The merchants of Shaba and Raamal also traded with you, exchanging for your wares the very choicest spices, all kinds of precious stones and gold. Ezekiel 21-22 On the other hand Koran also recorded, O you who believe! do not eat up your property among yourselves in vanities: but let there be amongst you traffic and trade by mutual good will: nor kill or destroy yourselves: for Allah has been to you Most Merciful. Sura 4: verse 29.

During the time of the Prophet there was trade in Mecca and Medina and beyond to Babylon and Syria and Egypt. The camels carried goods for barter that was preferred than today’s monetary business. The mode of exchange during Prophet Muhammad time was gold for gold, grain for grain, goat for goat that is equal and equal. The burden of carrying heavy weight of coins, gold, silver and property made paper money accepted by the Saudi Arabia and the Arab states to enter the world monetary system. So trading in the Sudan is in the hands of the Arab merchants, they have been cheating, and destroying the villages that opposed their methods of trading, overcharging, and hoarding of goods. This has been part of the reason the people wake up and begin to chase them away. They retaliated by force, armed by the government and raid and burnt down villages, looted the livestock of the Nuer, Dinka and Shilluk and displace them. Baazaar markets do still exist in the Sudan and are active markets at Omdurman, Khartoum North and Khartoum. The only prominent traders are Northern Arabs and they squeeze the Africans out of business but they form the bulk of consumers who buy their products. The Africans remain in debt and poverty to the Muslims. Any trade the Prophet advice must be entered into contract and there must be a witnessed. So far trade like in the Bible demands justice and fairness as demanded by both religions. In the Sudan the traders trade in the South Sudan disrespecting the financial instruments and regulations of the conventional system. They make their transactions and reject banking the money in the banks and transfer the money to the north by carrying in boxes or send by hand to their relatives to take north, hawala system. As they cheat and squeezed out the local traders from business they send a lot of money to the north for building the north and starve the South or the marginalized areas of funds circulating in the area. The teachers, police and warders and workers go without salaries and wages because the Banks have no funds to borrow to the regional government to pay them. Local and International trade existed in the olden days in Palestine and Judea. Trade was by barter goods an animal to complete their transactions. The traders gathered and made many journeys from Judea to Jordan, Egypt, Babylon (Iraq), Saudi Arabia Medina, Mecca and Syria trading in grains, oil and spices during famine. As wedding feasts were common, they bought wine and spices, and livestock. Hence, the traders in Egypt and Loadiceans begun shaping gold and silver into rings, bars or rounded used as money to replace the carrying of heavy goods for exchange for livestock. The children of Jacob who used to trade in Judea traded with bundles of money which were copper and bronze metals rings tied together with strings. When they were emptying their sacks, there in each one sack was moneybag! At the sight of their money bags, they and their father were dismayed.” Gen 42:35 People in the past came to use money for their purchases; for instance, Omri bought the village and Hill of Samaria for two silver of talents. He then bought the Hill of Samaria from Shemer for two silver talents and built upon the Hill, naming the city he built Samaria after Shemmer, the former owner.” 1 King 16:24

Thus, there was international trade in the past, which was both recognized by the two faiths. Although restricted by the rudimentary mode of transport yet it flourished at that period in the Middle East. That was trade in the past but as modern trade came into existence, it is because of competition among the people. God gives people talents and wisdom and they use it for creating modern cars, Lorries and trucks, airplanes, music, TV and Radio which others do not have. The construction of modern ships and train and Internet help the spread of technology and modern culture. The Developing World and Developed World have to exchange the goods and services through importation and exportation of goods and commodities transported by huge ships and airplanes. In the Sudan with Sharia law, there will be an Islamic window to serve the people of the South as said in the article 14.3 of course; the Islamic Jurists on the Board of Directors in the Central Bank of the Sudan and Chamber of Commerce and Ministry of Commerce will strictly scrutinize the imports in accordance to Sharia law. The Islamic jurists will examine if the goods do not affect the Muslim and ethical values of life. Islam forbids the importation of idols, crosses, wine, alcohol, music and drugs. Goods that are exchange or loaned on payment of interest create misery and selfishness. Hence, the Muslim cannot compromise on the charging of interest. So the border trade of Ethiopia, Kenya, Uganda, Congo, Chad and Central African Republic article 6.3.12, imports which come under the National government may come under restrictions because the taxation is in accordance with the National Legislation which forbids the above items. Sudan Constitution, article 113, Federal Financial Resources, item a, the tariffs custom duties, sea and air ports revenues are scrutinized by the custom officers applying the Central government tariffs imports and exports. They check for any imports forbidden by Sharia and prohibit their entry. Sudan imports are taxed according to the harmonized Commodity and Coding system. Tariffs, article 63.7, imports and exports are under the strict tariff measures also, prohibited spirits and wines, narcotics, gambling equipment, arms and ammunitions and article 83 of the same act prohibits pork, music DVD and films from the west. In this Islam prohibits imports that are forbidden by the Sharia Law and this has an effect on importation of goods and materials through Port Sudan, Therefore, during the Regional Government of 1972 plants and materials imported through Port Sudan some reached the destinations but remain inoperative since 1972 to 2005. The National Minster of Finance and Commerce, Permanent Secretaries and Regional Ministers of Finance and Commerce and their Directors played a role in the economic sabotage which cost the state huge financial losses, payment of demurrages, looting of the property, plant and materials rotted and employees paid despite there was no production. The Ministers and officials who committed these economic crimes were not punished but got away as excellent employees who had done good National job. So the national governments of former President Jaafar Nimeri, former Prime Minister Sadiq al Mahdi and President Omer al Beshir are still doing it. They want to make sure the economy of the South Sudan stagnates than developing and they would prefer to go to war to destroy it. In article 9.0 of the Wealth sharing agreement, there will be no restrictions on the interstate trade but this is true for trade among the Southern states. But with the northern states, they may not like the money created by the South Sudan because they may believe as unIslamic or dealing interest charged money. In article 9.1 the state Chamber of Commerce will advise the state government on commercial, trade, Banking, credit and border trade disputes, dumping of products, stolen property, livestock smuggling and collection of fees. The Islamic government may

bar legislation on the creation and building of wine and spirit industry, Music industry, TV industry, Radio Music, Pork industry, Medical Drugs industry because these produce sins. International Monetary Funds (IMF) pays capital on interest. Sudan owed to IMF $26 billion, which it cannot meet at once as the rate of interest keeps on in creasing on the original capital. IMF has advised the Sudan to structure the economic by selling corporations to the private sector. It has done it but still pays the rate of interest to IMF which is treated by Sharia as a sin, haram. We expect the Islamic government to bear with the South to obtain loans from the West as well as from the Arab countries. We believe the way out for our development depends on us handling the loans, imports and exports since we suspect the non-cooperation from the northern Central Bank and Commercial officials in releasing the information, credit and funds for the development of the marginalised areas. Many investors will not tolerate to be bothered by too many restrictions, delays and dodging from the local people and officials.

B. LAND, WATER AND OIL RESOURCES Interim Constitution, Article 186 Land and Resources Another serious area of contention is the Oil contracts where the National government assumes its sovereignty and decides or enforces Oil Contracts with the foreign Corporations. The National government President will appoint the Deputy Chairman of National Petroleum Commission (NPC). In the wealth sharing agreement, article 3.4.4, the (NPC) will negotiate and approve the Oil Contracts. In the Upper Nile Region, the Oil Contracts have been signed between the National Government and the Multi Corporation, which respects its interest, and of the National government. The case in point the people of Bentiu has been displaced and raided by the militias supported by the government to give security to the corporation employees. Most of the people employed are not from the locality and the refinery is taken to Khartoum, al Jaili north of Khartoum and Port Sudan. The Nuer lost jobs, land and livestock and becomes displaced from their homestead. The facilities such as the building of schools and health centers in the areas of Upper Nile and Bentiu by the Multi Corporations if some are built are not to the standard and inadequate. The National Government Islamic Jurists will insist that the National government have its prerogative over agreements and lands appropriated by the Corporations. The Multi Corporations are notorious despite the massive killings of the people, in Upper Nile, Bahr el Ghazal, Ingessena and Darful they do not care; they have their eyes and interest on gold, oil and great potential for agricultural production. They are investing billions of dollars and working closely with the government because they respect it as the only sovereign responsible for them. They do not respect the state governments and who knows they may be paying the royalties to the Central government, which should not be the case. Khartoum claims sovereignty and any oil contract is under its jurisdiction. Although article 3.5.4 says that National Petroleum Commission will hear complains and grievances from the community, it will favor the national law the

National Minister of Petroleum will sign the contract as a sovereign Minister. Article 5.3 the formula for wealth sharing of oil is described and after the sales less pipeline and management expenses, the net revenue will be distributed and article 5.5 apportion 2% of oil revenue to the state where oil production is produced. The balance of 98 % is divided equally by the Oil formula for wealth sharing of Bentiu based on equal basis of 50% each for the (GOS) and (GOSS) respectively and should be 49% each; article 5.6 during the interim period refers to. The (GOSS) will follow up the production or receive production reports and export sales monthly from the Corporation and the distribution of the oil revenue after costs are met also on monthly basis. The Petroleum National Commission PNC should not treat any information confidential if there are losses or decline in production and the revenue, the PNC duty is to report to both GOS and GOSS. The Corporation should remit other revenue such as person income tax and royalties of the (GOSS) to the Ministry of Finance of the (GOSS) and likewise to the Central Ministry of Finance. Since the protocol is legal, Wealth Sharing Agreement has been signed any payments made from the oil export sales, the (GOSS) is entitled to claim its arreas and the finance officials should avail the data. If there is dispute, it will be referred to the Constitutional Court to judge, despite the South losing the case. Promotion of the tax base is by the Commercial Banks and (GOSS) in the South giving credit to the business, small scale industries, the County Commissioners building markets for vegetables, shops, hotels and residential houses for renting and allocating plots to the local businessmen to build shops and residential businesses for renting and payment of the revenue. The creation of the businesses encourages by the (GOSS) and Commercial Banks also creating employment in the private sector. As the number of the manpoweremployees and private companies multiply and the revenue due to the government will also increase. All the Islamists and the Sectarin Islamic parties, which come to power in Khartoum, have ignored deliberately to implement the Sudanese Constitution. They do so because the Constitution contains clauses for justice and equality for all. So they abandon the Constitution and implement their clique, party and Islamic interests, objectives and policies. They have achieved this by instructions and decrees to cause instability, and fear for their easy governance of the people. As long as they continue to remain in power they would not change and consider just governance for the benefit of the Sudanese. Therefore, the people of the Darfur, Nuba Mountains, Ingessena, Beja and South Sudan from the start of the implementation of the Wealth Sharing agreement must watch and guard their rights and freedoms for economic development that they are not violated and undermined by the Khartoum officials. There is no longer blind support for any Islamic sectarian parties, they either cooperate or tell the South to go. We know Khartoum will never deliver the peace and development; we have to protect our rights and freedoms. We hope the Islamic Sectarian parties; including the National Islamic Front NIF will not prevent the flow of funds to the Central Bank of South Sudan and Commercial Banks in the South. Any funds donated, loaned, allocated by the Federal government and International Corporations and foreign governments must be channeled into the Banks in South Sudan. The Multi Corporations exploiting the Oil does not give a damn on the conditions of the ethnic groups in the land. The (GOS) of the Sudan gives them security by forcing the locals out of their land because the land is given to them by the Central government. In Sudan Constitution of 1998, article 110, Federal powers, land, natural resources belong to the government of Sudan. The Federal government in Khartoum is thus given powers to misappropriate the land allocation to its NIF

supporters. The Ministry of Agriculture had been allocating the Renk, Nuba and Ingessena lands for mechanized farming to fulfill the advice of the World Bank. The Ministry of Agriculture in Khartoum was noted in 1980s of allocating the Nuba Mountains and Renk Shilluk and Dinka fertile lands to retired army officers, civil servants and Arab merchants to carry out agricultural mechanical farming. The Murahalin Baggara is advancing into the Dinka grazing land in Kiir River lands, which cause conflict. The Nuba small farmers could not get access to the credit their lands were allocated to the rich northern farmers. The Nuba became landless and failed even to feed themselves. They had to become cheap laborers paid wages and some moved to the towns where they were discriminated. The Nuba, Ingessena and the Shilluk and Dinka of Renk lost their lands and they became landless and begin to cause conflict in order to return their lands. If the (GOS) has such a scheme to grow foodgrains and export, the local people of the area should be given loans and hire the tractors to cultivate their land. People from those areas have reported that Khartoum was plotting to take their land and displace them to go and work in the north in the factories with fewer wages than farming and make money. It is not logical for the GOS of the Sudan to deliberately displace people from their land of ancestors and give to others. Hence, the Darfur and Bahr el Ghazal raids by the Baggara and the Janjaweed are the organized robbery by the (GOS) to give the African lands to the Arabs and own it forever since Jihad advocate the taking of the land and property as booty of the war. Land issues are serious because the taking of the land of an ethnic group causes war. In order to resolve such problems, the Presidency appoints the Chairperson of the National Land Commission who will consult the Sharia and the Sudan Constitution of 1998. Hence, any judgments and compromises will be in favor of the Supreme law of the Sudan, Sharia. The Khartoum government encourages the problems of land and grazing areas and mechanized agriculture. Jonglei Canal water is an important economic asset as the oil fields at Bentiu even more so because it sustains life. The north and Egypt are colluding to take away this resource for their socio-economic development and military supremacy. When Jonglei Canal if dug would drain 15 milliard cubic metres of water from the swamps and released to flow to the north and Egypt. The effect will be to decrease rainfall in the area, thus, the Dinka, Nuer and Shilluk lifestyle, animals, livestock, agriculture, fishing and amphibians and the environment will be endangered. The north and Egypt do not care about the people who will be affected. Egypt and Sudan have made much use of the Nile water for irrigation of cash crops cotton, sesame and foodgrains, wheat and rice for exports. Sudan and especially Egypt receives huge revenue which accrues to it and uses for improving agriculture, textiles mills, and building of military hardwares, tanks, and aircraft’s, guns and bombs for bombing the people of the South Sudan. The Nile water has made Egypt the super power in the Middle East. Despite, the Nile water sharing and Jonglei Canal is not mentioned here, the people of the South Sudan should stand firm on their rights to use water for their livelihood. Constant water evaporation brings further rainfall to the area and neighborhood, seasonal changes for agricultural production, wildlife movement and fishing industry. These activities will be reduced and that affects the people natural survival. The construction by the French Company Construction International (CCI) came to stop because of the war. This project should be halted and money spent repaid to (CCI) by

Sudan government and Egypt. The Sudd water should remain an International research water, wild and amphibian life and tourist attraction. We do not want to destroy ourselves and leave our resources for survival and benefit others. Our people should benefit from the natural use of the water. The Jonglei needs further research and conclusions for making decisions that will be helpful and beneficial to the people of the area and South Sudan. Development of the South Sudan depends also on the availability of electricity produced cheaply by Baden or Fulla rapids in Equatoria area, south of Juba. South Sudan should not compromise on the route of importing equipment and materials through Port Sudan. Most of the imports, we advise that the (GOSS) should direct to be received through Mombasa because we are sure these import equipment and materials for the socio economic development will reach within minimum delay, theft and destruction or diversion by the national government.

Our people of the marginalized areas Beja, Nuba Mountains, Ingessena and South Sudan have been peaceful since in the memorial time. The unity call by the Islamic parties brought them under subjugation and they are instigated to fight each other to protect the Khartoum governments. Despite, their mass murder by the Islamic government, they welcome the SPLM and (GOS) peace. GOS and SPLM/A fighting is hurting them, their areas are destroyed, livestock and foodgrains taken, children enslaved. The wise people in the villages say, “When two elephants fight, the grass suffers.” So our people have borne the brunt of the suffering organized by the (GOS), Sudan Defense Forces, militias Murahalin Baggara and Rezigat, Janjaweed and South Sudan Defense forces, SPLM United, and Equatoria Defense Force. The SPLM defends the oppressed and downtrodden people of the South Sudan. These have been ravaging and destroying the very existence of the people mercilessly in search of foodgrains, livestock and support for their hidden agendas of the non-liberation objectives of the people of the South Sudan. Khartoum governments since independence in 1956 have been abrogating agreements in favor for an Islamic State disregarding the ethnic nationalities and diverse society of the Sudan. The sectarian Islamic parties National Islamic Front NIF, Umma and Khatmiya claim that the Muslims are the majority but today they are divided by race, color and languages and belong to different ethnic groups, identities and cultures. African Muslims of the Nuba Mountains, Fur, Ingessena and Beja are discriminated upon, oppressed, colonized and imperialized by the Arab minority. They claim that the Muslim in the Sudan are United by faith, yet not true because they are discriminated by Arab Muslims who are white and brown, they are superior over the black Africans who are treated as infidels because they do not belong to the Arab ancestors or come from the Middle East. Therefore, such differences like secular democratic Sudan and Shura consultation produce conflicts and affect the agreements.

The Islamists are against united secular democratic Sudan if they accept means abandoning Sharia Law, Islamic government and Islamic state which the NIF is establishing with the backing of the militant Mujahadin soldiers of President Omer el Beshir. Thus, the Khartoum Islamic governments are bent to abrogate any agreements, which contains secular ideas with the infidels and Addis Ababa Agreement of 1972 is a point in reference. The Sectarian Islamic parties of Uma of Sadiq el Mahdi, Democratic Unionist Party of Khatmiya led by Muhammad el Mirghani, NIF led by Dr Hassan Turabi and Islamists are against the Wealth Sharing agreements and the other Peace Protocols because they believe the SPLM/A is given excessive power not in line with the concept of dhimmi in the Sharia. The Regional government of President Abel Alier was more democratic than the National Assembly. According to the Islamists, Allah says, But when the forbidden months are past, then fight and slay the Pagans wherever you find them, and seize them, beleaguer them, and lie in wait for them in every stratagem of war; but if they repent, and establish regular prayers and practice regular charity, then open the way for them: for Allah is Oft forgiving, Most Merciful. Sura 9 verse 5. Sectarian Islamic Sunnis parties do not believe in peace with non-Muslims because they will loose power in Khartoum. They eye and envy the African lands and water resources, rain, oil, gold, the green pastures and the Nile River. They strive for economic control and domination of the South, the only relationship they have with it. Hence, any agreements between the marginalized areas especially the South Sudan, the Khartoum governments do not recognize them for along time. I give the examples of Juba Conference of 1947, Round Table Conference 1965, Addis Ababa Agreement of 1972 and Sudan Peace Agreement of 1997. The resolutions and articles in these agreements did not receive full implementation due to the Arab Muslims belief that they cannot cooperate and implement secular and democratic principles of capitalism, interest, speculation and monopoly. They do not want to see the socio economic development of the South Sudan bear fruits and beat theirs. The South must remain behind the Muslim north and the dhimmis are often unequal to the Muslims. The South Sudan Liberation Movement SSLM led by General Joseph Lagu tookover the fight from the Equatoria Corps rebellion of August 1955 through 1963 to 1972 until the Addis Ababa Agreement of 1972. The Agreement brought a decade of relative peace. Despite the pressure on President General Nimeri to abandon the Agreement many Muslim were overcome by the NIF manipulation and President Nimeri yielded to Islamic Sharia. Dr Turabi advised the President that the agreement was against Islam, it gave the infidels authority over the Muslims. Moreover, the agreement advocated secularism, democracy and socio economic development. The NIF hate secular and democracy because in the Sudan it prevented them to come into power and introduced Sharia Law, God’s Divine Law. So in 1983, President Nimeri agreed to implement Sharia Law and the Addis Ababa agreement was abrogated. The September Laws of 1983, Sharia were decreed and that begun the turning point to the establishment of an Islamic state. President Nimeri chose war with the infidels, kaffirs. According to Dr. Turabi Allah prohibits treaties or agreements that give authority over the Muslims be it on security arrangements, economic, Wealth Sharing or cultural. Therefore, he said the Addis Ababa Agreement was against Sharia since it contains secular and democracy, freedom of ownership, charging interest, and monopoly. Any capitalist investment contains interest and is illegal in an Islamic

state, Sudan. Hence, the giving of the Wealth Sharing on 50% and non oil revenue 50% from the South Sudan on equal basis is making the people of the South Sudan is less equal to the Muslims. The north gets oil share 50%, non oil revenue from the South 50% and national revenue 100 %, so total 150% and south total 100%. Bear in mind that the non oil revenue from the South is expected from industries, custom duties as well as personal income tax which is small. Thus, Allah forbids the nonMuslims to be superior or better financially than Muslims. Allah has forbidden giving the non-Muslims wealth more than Muslims, appoint them to lead private or public sectors while the non-Muslims are junior to them. The Christians cannot employ the Muslims and succeed in life over the Muslims. They have to remain dhimmis. The disbelievers are not friends or allies of the Muslims, hence, to make agreements with non Muslims is forbidden because it affects the Sharia rules of economic, security, trade, culture and political authority of Muslims over the Christians. Sharia cannot allow non-Muslims to cooperate with Muslims and prefer all agreements written must comform to it. Surely, the fate of the Addis Ababa Agreement of 1972, the Protocols especially the Power Sharing and Wealth Sharing recognize the sovereignty, independence of the Sudan and Unity of the Sudan, still there are Muslims who are against the agreement. This makes it worse because such agreements should not contain equality with the Muslims who are superior and as commanded by Sharia Law and Sudan Islamic Constitution of 1998. Despite, Dr Turabi being in prison, the Islamists kept consulting him on the Protocols but he insists the agreements must comply with Sharia or it is null and void. Although (GOSS) and (GOS) has signed the six Protocols, there are sharp differences imposed by Sharia that are dividing the nation into Twin Tiers economic systems, one for the North complete Sharia, and one for the South Sudan built on Western Capitalism. I advocate that the two systems be separated from each other and the windows should only be on interstate Border Trade and any foreign aid, donation and capital investments for the South Sudan be paid directly to the Central Bank of the South Sudan or Commercial Banks in the South and supervised by the (GOSS) and the project directors. The North is to handle its Islamic system in the northern States. The South Sudan officials who are appointed to the committees should watch the wealth sharing agreement because it is the only peace tool that will make the agreement stick.

CHAPTER 8 FATWA APPLICATION Fatwa is an edict issued by an Islamic ruler who is an Imam or prince against those who wage war against Islam and Islamic state or offend Islamic religion. In the Sudan, Mosque Imams, Sheikhs of Kalwa and Sufis can declare fatwa on economic, social, military, religious, financial, or on any matter. Hence, in order to alter any interpretation of the Wealth Sharing, the Minister concern will get an opinion from an Islamic religious committee. It has to be issued in a Muslim state ruled by Sharia Law. In Sudan any Arab Murahalin Baggara, Janaweed merchant or individual can issue Fatwa even on personal differences and kill South Sudanese. This has given the

Muslim supporters to declare fatwa against those who oppose Islam, individuals who disagree on economic exploitation, political domination, trade disputes in the markets, educational and cultural differences, marriage disputes, smuggling, sexual disputes, gays etc. The Sudan Constitution of 1998 article 7, Defense of Sudan is an honor and Jihad is a duty. This has given power to any Muslim to be arrogant to issue fatwa to any African and say he is fighting jihad holy war as declared by the Constitution. When he is asked by the police he explains that the person abuse Islam not him. Islam is used as a protection against human rights crimes that an individual commits and should not be the case. In the case of South Sudan the Fatwa issued April 24 at El Obeid by the Ulema should apply in the north in an area where Sharia is implemented. The fatwa issued to fight the apostates Nuba Mountains, Ingessena, Beja, and Fur who are Muslims and infidel South Sudan for opposing an Islamic government, which is applying Sharia wrongly, is a crime against Islam. The NIF fatwa thus is to fight beyond South Sudan into Uganda, Kenya, Tanzania, Congo, Central African Republic, Ethiopia, Eritrea and Chad through to South Africa. A Muslim declares Fatwa according to Muslims for a specific violation of Islam. The soldiers and individual Muslims on the streets in South Sudan issue fatwa to kill the non-Muslims even for just misunderstanding of trading prices. In the South Sudan the NIF has not implemented Sharia law officially but the NIF Islamic government forces the non-Muslims to become Muslims or they die. The reason for fatwa was wrong because the marginalised areas are fighting against domination and political control by the Sectarian Islamic parties of NIF, Uma and Khatmiya. Interest charging and loans from the Western world, which carried interest charges, is not Halal in accordance with the Sharia Law. The Minister of Finance Dr Zubeir Mohammad al Hassan told the Khaleej Times, The need and necessity for loans were the reason behind getting the loans. As well Sudan is a poor country and we got fatwa (religious permission from the Islamic clergy men) to allow Sudan to get loans which are based on interests, where there were necessity for that to finance the development. So we hope that the use of fatwa by the President and the Islamists in the north would not undermine the conventional Banking, the interest charging in the South will not affect the economic growth. There are Muslim sectarian parties, which are opposed to interest charging in the same country designated as an Islamic State.

Hence, the fatwa issues affect the Christians and the indigenous people who are hunted mujahadin to become Muslims by forces of President General Omer el Beshir. If each Muslims Issues his fatwa then those non-Muslims face ethnic cleansing, extermination, and genocide which has already happened. If peace is to prevail the issuing of fatwa anyhow by any Muslim should be halted and is the matter of faithful Ulema to decide in accordance with Sharia in the Koran. For the cancellation of Addis Ababa of 1972, fatwa was issued by Dr Hassan Turabi and Ulema, The Jihad war, the Ulema issued fatwa at El Obeid in 1992 and recently 25 Muslim Clerics has issued fatwa on 10 July 2005 against Sudan Peoples Liberation Movement and Army

SPLM/A to prevent the implementation of the Comprehensive Peace Agreement CPA. South Sudan has been opposing domination and Control, which is the second colonialization and imperialization of the Sudan by the NIF military government. It has been using Islam for its acquisition of political power and control of diverse ethnic groups and the resources of the Sudan. The Military strong man President Field Marshall Omer el Beshir, officers and men are neither Ulema nor Sheiks but a bunch with little Islamic knowledge. Therefore, they cannot separate what is religious from military so they misuse fatwa for mobilizing recruits to support their stay in power. Most Muslims and African Muslims say that the fatwa was wrongly issued for wrong human reasons of greed for power and wealth misappropriation for their supporters. The African Muslim is marginalized, oppressed, poor lot colonized and imperialized too by fellow Muslims from northern Sudan, which is the minority. The Black Book written by the African Muslims of Darfur revealed the extent of domination and mistreatment by the Islamic government of Khartoum of President Field Marshall Omer el Beshir and the previous Sectarian Islamic governments of Uma and Khatmiya. It is harmful to make fatwa to protect domination, economic exploitation and discrimination against the ethnic groups in the Sudan. The NIF now broken into two, National Congress and Popular National Congress have committed crimes against humanity, holocaust of 2.3 murdered not for the sake of Islam but for protection of militarism and dictatorship. President General Omer el Beshir instead of abandoning the army to become an Imam in a Mosque he has promoted himself to Field Marshall. It is clear that he is not a Khalifa but true military ruler. Hence, a treaty or agreement under military or Islamic arrangement is shaky and implementing it is complicated by Sharia.

CHAPTER 9 MAKING UNITY ATTRACTIVE Making Unity attractive means the Government of National Unity (GONU) must meet its obligations; allocate more to the South Sudan but not to take from the little non oil -revenue of the South 50% and also 50% oil revenue. The South gets nonfrom the great amount of the revenue of the national government. Is this making unity attractive? Here is an example to reveal that the South Sudan share from the Wealth Sharing Agreement is much less. SAMPLE REVENUE CALCULATION NATIONAL REVENUE SHARING OF WEALTH Interim Constitution, article 192 Sharing Oil and Non Oil Revenue

Supposing that in 2004 net oil revenue is 3 billion dollars, the National non-oil revenue is 500 million, and South Sudan non-revenue is 200 million dollars. Our calculation will be as follows: For 16 northern states oil revenue 50% (49%) = $1.47 billion per annum National non oil revenue 500 million = $ 0.5 billion South Sudan non revenue 50% of 200 million dollars = $ 100 0.1 billion Total National Revenue dollars $ 2.07 billion per annum While for South Sudan the revenue is South Sudan oil revenue 50% (49%) = annum South Sudan non oil revenue $ 200 (50%) $ 100 = Total Revenue annum Bentiu, oil areas 2% annum

$1.47 billion per 0.1 billion $1.57 bill ion per

$0.06 billion per

For 16 states in the north they received revenue $ 2.07 billion and the South Sudan with 10 states underdeveloped received $1.57 billion dollars so the difference of revenue between the National government is $ 2.07- (1.57+0.06) = $ 0.44 billion about $ 440 million. The National government has surplus revenue of 440 million dollars. If the states will get equal share for the revenue, 16 northern states will get each $ 0.129.4 billion about $129 million per annum, a monthly allocation of $10.75 million. While the South Sudan 10 states plus the capital Juba 11 states will get each $0.143 billion about $142 million per annum, a monthly allocation of $11.8 million. Some of the northern states are developed more than the Southern states and their rates of progress will not narrow down soon to be equal with South Sudan. What will the National government do with the undistributed revenue of $440 million? If the South Sudan revenue ratio of 26 states is 38%, ie 100% divide by 26 states, each state 3.8%, 10 states X 3.8 % = 38 % National Revenue $0.5 billion X 38% = $ 0.19 billion about $190 million. So the South Sudan share from the national revenue is $ 0.19 more than the $0.1 billion about $ 100 million from the South Sudan 50% allocated from South Sudan nonrevenue account. In reality, the north gets 200% of wealth sharing, 50 % of oil revenue+ 50 % non revenue from the South Sudan + 100 % national revenue collected in the north, so for the northern 16 states, each state will get 12.5%. While the South Sudan gets 50% oil revenue + 50% non oil revenue from the South +100%, so for the 11 states including Juba, each will get 9.1 %. Where is the equality in the wealth sharing? What would make the National government allocate itself more resources during the Interim period depriving the South Sudan, which is expecting an attractive unity by allocation of more financial resources? As this calculation shows that there will be

surplus revenue to the National government, we expect the National government must increase the revenue to the South Sudan from its collection of non-revenue account. The grants in aid and international aid formula for the distribution of grants and donations has not been agreed upon and worked out. We expect further discrimination in the allocation of grants and international aid because Islamic Sharia law does not treat the Muslims equal to the non-Muslims. Thus, some Islamists believe that the National revenue collected under Sharia law cannot be allocated for development of non-Muslims. The revenue the South Sudan received is from its resources of 50% oil and non-oil taxation. The national government has avoided allocating any revenue from the northern collection. The Islamic party’s economic policies are to under develop the South until they become Muslims then the real development would restart. Thus, South Sudanese if they want to get rid of underdevelopment, they should listen to those experts who know that without controlling your economy, you have surrendered your destiny for exploitation and destruction. Action men and women who are conscious and have a will must be carefully selected for they would implement the wealth sharing justly. Those who allowed their economy exploited would regret as the great scholar Ludwig Von Mises warned, There is no means by which anyone can evade his personal responsibility whoever neglects to examine to the best of his abilities all the problems involved voluntarily surrenders his birth right to a self appointed elite of superman. In such matters blind reliance upon “experts “and uncritical acceptance of popular catchwords and prejudices is tantamount to the abandamant of self-determination and yielding to other people’s domination. As conditions are today, nothing can be more important to every intelligent man than economics, his own fate and that of his progeny is at stake. ( Mises) Development depends on the human beings actions that are geared to justice and fair distribution of wealth. Let us be committed and adhere to this principle.

Thus, we have seen that the Koran and Bible tend to protect the people and condemn
charging of interest and excessive materialism. Both Bible and Koran are not against Social and Economic justice and equality. But human greed and corruption to own the wealth of the Nation by a few is the immoral sin of the faithful. These should be blamed for human greed for power and economic control of the African Sudanese people. There are areas of conflicting interest which the (GOSS) and (GOS) should watch and provide quick remedy. Because not all of the NIF, National Congress and Popular National Congress, Uma and Khatmiya Republican parties are in support of the Wealth Sharing Agreement. There are saboteurs who are core colonialists and imperialists who want other parts of the Sudan to lack behind in social development so that they continue to control the political power and control the social

transformation and economic development, as Wealth is the instrument of domination and oppression. We should have prepared two States, two Central Banks, one for the South Sudan and another for the North Sudan, with two different currencies and one common currency like in the European Union. It is important to note that Sudan Constitution of 1998 article 139, Amendment of the Constitution article 3 (a). an amendment when introduced will be in accordance to Sharia not any other law and transitional government during the interim period will govern, (g) South Sudan will work to strive towards unity. Since the North will remain under Sharia Law, it will function as an Islamic State. The issue is before reaching the end of the interim period, will the Wealth agreement provisions come under attractive implementation by the government of Sudan. This is the question for everyone to watch and guard to protect our rights and freedoms so that the wealth agreement is implemented to the letter. The Conventional system in the South should operate their Banks, oil revenue and receive donations from International donors direct into the Banks of the South Sudan, oil revenue releases must be paid without interference from President and Central Minister of Finance. Allocation Commission should act and order the release of financial resources. The signatory of the Bank of South Sudan accounts should be the officials of the South Sudan government not of the Bank of Sudan. Both (GOSS) and (GOS) should only get reports of the oil production, sales and revenue distribution. Any problem concerning financial releases should be reported by the Financial Commission to the two Presidents for solutions or refer to the Constitutional Court in South Sudan. The Sudan press must report any mismanagement immediately. Also the Wealth Sharing releases of oil and non-revenues and non-revenue must be reviewed quarterly by the Financial Allocation Commission in addition to monthly supervision of regular releases of the funds. The IGAD members and Partners for Peace and United Nation SecretaryGeneral must receive reports for their follow up of the Wealth Sharing agreement CPA. This is important to arrest problems before these grow into unmanageable conflicts. Peace is only possible when reconciliation and forgiveness is backed by real improvements of the lives of those left behind, who are now living in pure poverty. Thus, this small book is written as Watch HandBook for officials to follow and remind the politicians and administrators that our rights and freedoms are not played with, ignored, neglected and misinterpreted. Briefly, let us know potential conflict areas, Banking system and 50 % bases for sharing the oil and releases of funds. Also let us watch Wealth Sharing Agreement Handbook particularly the application of sovereignty to, 1. Monitoring of the revenue and Financial releases and remittances by (GOS) to GOSS South Sudan, 2. Financial donations and international aid flow to South Sudan, 3. Financial transactions through the Islamic window and conventional Banking, 4. Issues of Currency by GOSS and Foreign exchange transactions for South Sudan, 5. Land misappropriations and allocations for farming and residential buildings, 6. Imports movement through Port Sudan, there was delays to clear the imports. It is advisable to import through Kenya, Mombasa port, 7. Transparency of imports movement through border trade, 8. Transparency of Oil Contracts, production and sale statistics, 9. International Agreements for borrowing by the states and payment of the International loans that would be borne by the National government because it was misused by the Central government.

10. Potential problematic areas ignored are the use of the water, construction of dams for production of hydroelectricity at Baden/ Fulla rapids and the digging of Jonglei Canal. 11. Sharing portfolios of Finance and Energy, the North takes one and the South one. If not done, the releases will be controlled by the President and Minister of Finance and will cause problems. We would prefer the BOSS to be autonomous in conducting its economic policy through the tools of conventional Banking, the reserve requirements, interest rate, open market operations and foreign exchange currency. While the northern Bank of Sudan abandons the control of interest rates and concentrate on reserve requirements, open market operations and foreign currency and others. Our peace depends on the economic success during the interim period and we must apply our decisions without the CBOS tightening the economic control on the South Sudan to prove that we are unable to run our economy. If they claim so this can be seen by practical releases and contribution towards the development of the South Sudan. If there are delays and abnormalities, the politicians, administrators and journalists should report in the press so that the Sudanese people and the international monitors know about it. The people should debate about why the delays, omissions and rejections are manipulated on the (GOSS) by Khartoum. Even if the Interim Constitution is passed as long as the Uma, National Congress, Popular National Congress, Democratic Unionist Party, Tabliq and others do have in their manifestoes and party constitutions the establishment of an Islamic state and governance by Sharia, the manipulation of the conflict is not yet over. If they come to power their parties will insist to implement Sharia that will produce conflict unless the South Sudan becomes a nation of its own. In all analysis and painful consideration, there is nothing tying the North and South together apart from justice and equality, if this is absent the people have the right to decide their future through a referendum for a Nation of their own. Infact, a two state solution would have been the best so that each state runs and controls its economy. The South Sudan will then become a nation and good neighbor of northern Sudan. South Sudan Watch handbook will help and guide us follow the Wealth Sharing Agreement implementation right from the time the Final Comprehensive Agreement is signed. The people of the South Sudan should come out from their hiding to stand for their rights and follow their rights, protection of life, freedoms, economic progress, land, oil, livestock and trade forever and not trust the north because the past speaks for itself.

Philip Lomodong Lako has a wealth of experience in handling economic and financial issues. He holds a B.A (Honors) Economics from the University of Delhi, 1973 and Diploma in Marketing Management from the Institute of management Sciences, Delf, Holland, 1976. He was General Manager of Regional Insurance Company, Juba, Sudan. He joined the Sudan Peoples Liberation Movement/Army, SPLM/A. He became SPLA Commander, member of National Liberation Council, Secretary National Executive Council, and Commissioner of Torit under SPLM/A Administration.

The Watch Handbook helps us understand the operation of the Wealth Sharing Agreement and the loopholes to prevent economic mismanagement of the South Sudan economy.

Sources: Protocol on Power Sharing Naivasha, Kenya, May 26, 2004 Agreement on Wealth sharing During the Pre Interim and Interim Period, Naivasha, Kenya, January 7th, 2004. Constitution of the Republic of the Sudan 1998. The Quer’an Translation by Abdulla Yusuf Ali, Tahrike Tarsile Qur’an, Inc. Elmhurst, New York 11373-01115 New American Bible, St. Joseph Medium Size Edition, Confraternity of Christian Doctrine, Washington, D.C. 1986. Philip Lomodong Lako, the Classes of Unity in the Sudan May 15, 2004. Philip Lomodong Lako, Sudan Islamic Colonialism and Imperialism Today, July 16, 2004

Philip Lomodong Lako, the Fate of South Sudan Agreements with the Islamic Governments, April 22, 2003. Philip Lomodong Lako, Sudanese National Islamic Front Excessive Military Power, For what? January 2, 2003 Philip Lomodong Lako, Two States Solution for Sudan, South Sudan and North Sudan. Ann Mosely Lesch, the Sudan Contested National Identities, Indiana University, Press 1998 Dr Muhammad Nejatullah Siddiqi, Financing Infrastructure Building: Role of Islamic Financial Institutions. November 25, 2000 Nairobi, December 2, 2002 Central Bank of the Sudan Circular, The monetary and Credit policy for The Year 2004 Ref: -BS/-9/2/a, Date: - 6 Zul Qaeda, 1424HJ December 29, 2003 William Akuar, Fatwa Translated from Sharia Association Sudan, Internet 10 July 2005

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