South Sudan Chamber of Commerce Secretary-General on Friday warned that the country’s economy was weakening with possible price rise by the end of 2014.
Simon Akuei Deng told journalists in Juba that the economy is expected to face shortage of supplies, losses and subsequent inflation if the Central Bank and line ministries continue to fail controlling the outflow and inflow of hard currencies in exchange for goods from international trade.
He cited Finance, Petroleum, Housing and Health Ministries as members of Letter of Credit or LC Management Committee messing up with hard currencies meant for supplying goods including food, fuel, construction materials and drugs.
Mr Akuei said his recent meeting with Central Bank Governor Kornelio Koryom unveiled loopholes, malpractices in the line ministries while facilitating Letter of Credits approval.
The Secretary-General explained that a survey they carried out indicates that Letter of Credits worth 34 million US Dollars per a line ministry is lost every month in exchange of nothing.
Mr Akuei observed that the cause of commodities’ shortage and losses which he described as upset was the wrong procedures of Letter of Credits where hard currencies are paid to international markets’ suppliers before receiving goods in the country.
The Secretary-General blamed customs’ officials and dealers in currencies black markets for messing up the country’s economy.
Mr Akuei also blamed law enforcement agents for allowing criminal activities to take root in South Sudan.