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Viewing cable 06KHARTOUM322, Civil Servants Salaries Still Stalled

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Reference ID Created Released Classification Origin
06KHARTOUM322 2006-02-10 11:35 2011-08-24 16:30 UNCLASSIFIED Embassy Khartoum
VZCZCXRO2607
RR RUEHROV
DE RUEHKH #0322 0411135
ZNR UUUUU ZZH
R 101135Z FEB 06
FM AMEMBASSY KHARTOUM
TO RUEHC/SECSTATE WASHDC 1376
INFO RUCNIAD/IGAD COLLECTIVE
UNCLAS KHARTOUM 000322 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PINR EFIN ECON ELAB SU
SUBJECT:  Civil Servants Salaries Still Stalled 
 
 
1.  SUMMARY:  On February 9, officials from CG Juba met 
with the Government of Southern Sudan (GoSS) Under 
Secretary at the Ministry of Finance and Economic 
 
SIPDIS 
Planning, Francis Latiyo.  Latiyo discussed the 
challenges of paying civil servants, developing a 
reliable payroll foremost among them, and said payments 
would not begin until April.  He also discussed the 
establishment of a taxation regime, with the Government 
of National Unity (GNU) collecting all customs and 
tariffs and the GoSS collecting all other taxes. 
However, Latiyo said that the Ministry has been so busy 
establishing itself -- he had only been on the job two 
weeks -- that it has not focused on taxes or tax 
collection.  End Summary. 
 
--------------------------- 
The Volunteer Civil Service 
--------------------------- 
 
2.  Despite donor assistance to the Government in 
establishing civil service payrolls and paying civil 
servants, Latiyo said that much work remains.  He 
explained that the GoSS still does not know how many 
civil servants it has, and it is continuing to collect 
rosters from all ten southern states.  Once that is done, 
a committee must meet to go over the roles of the two 
parallel civil services -- the SPLM civil servants and 
the employees of the North's old Government Coordinating 
Council -- then review their qualifications, and decide 
whom to keep.  These committees are chaired by the under 
secretaries for each ministry, who were only appointed 
 
SIPDIS 
recently. 
 
3.  Although the GoSS has the money to pay these 
employees, which include teachers working without payment 
since the beginning of the school year, Latiyo made clear 
that they cannot begin issuing checks until they know who 
to pay.  When pressed, Latiyo admitted that April is the 
earliest the GoSS would be ready.  In the meantime, 
government employees continue to work for incentives, 
such as free housing in the case of some ministry 
employees, and with the promise of future pay and some 
back pay.  It is uncertain how extensive back pay would 
be. 
 
------------------------ 
Tax Regime in Transition 
------------------------ 
 
4.  Latiyo said that ministry officials were still 
working with the GNU) to determine the exact taxing 
authority for the GoSS.  His understanding was that 
tariffs and customs duties -- which he noted were the 
SPLM's primary source of income during the war -- would 
be national functions under the GNU.  He expected that 
all purely domestic taxes, such as income, property and 
business taxes, would be under the authority of the GoSS 
and its associated states, counties, payams, and bomas. 
Latiyo admitted that the ministry had been so focused on 
establishing itself and making it work that officials 
have not had a chance to develop a taxation structure or 
even decide precisely what to tax.  Because of this, the 
GoSS was currently not collecting any taxes, although the 
GNU continued to collect the tariffs and customs duties 
at the border. 
 
5.  Latiyo reiterated that the GoSS is dedicated to 
attracting foreign investors, and to making the South a 
good place to do business.  He said that businesses would 
be able to operate in the south without all the 
prohibitive restrictions in the North; however, he 
indicated that the ministry had not discussed any 
additional incentives, such as tax breaks or low-cost 
land leases.  Again, this was due to its focus on 
establishing itself. 
 
6. Bio Note:  Latiyo is a Baka from Yei.  During the war, 
he was a soldier for the SPLA and also worked for their 
finance ministry, collecting tariffs and customs duties 
in Yei. 
 
HUME