Land Acquisition in the Republic of South Sudan with Reference to Investment

By Jacob K. Lupai, SOUTH SUDAN

AUG. 29/2011, SSN; The land Act, 2009 is clear on the acquisition of
Community Land in the Republic South Sudan. Entrepreneurs who are
interested in investing in South Sudan and who may need land should be
better advised to consult the Land Act, 2009. This is in order to
avoid a headache and bitter disappointment in the way of what was
about to happen in Mukaya Payam in Lainya County, Central Equatoria
State.

Article 27(1) of the Land Act stipulates that, “Subject to consensus
between members of the Community, Traditional Authority may recommend
the grant to a person or company, whether national or foreign, a right
of leasehold in respect of a portion of community land to the
appropriate land administration.”

On the size of land to be granted, Sub-Article 2 stipulates that, “A
land size of not more than 250 feddans shall be granted by the
Traditional Authority in consultation with the County Land Authority
and the Payam Land Council.” However, when the land size to be granted
exceeds 250 feddans, Sub-Article 3 stipulates that, “Without prejudice
to the rights of the community to land, the Concerned Ministry in the
State shall in consultation with the Investment Authority approve the
lease contract granted by the Traditional Authority if the leasehold
contract is for more than 250 feddans”.

In Mukaya Payam a lease agreement was signed between Mukaya Payam
Cooperative and Nile Trading & Development, a Delaware Corporation of
the USA. The lease agreement was for a land size of 600,000 hectares
and the lease was for 49 years. As no proper procedure was followed
the lease agreement collapsed as the community mobilized against the
agreement through their Member of the Central Equatoria State
Legislative Assembly. The lesson learned from the Mukaya Payam
experience is that land is very precious to the community and it pays
to follow the law of the land or the laid down procedure.

I became aware of the land issue in Mukaya Payam in 2008. As the
Director General for Agricultural Extension and food security advisor
in the then Ministry of Agriculture, Forestry, Animal Resources and
Fisheries in Central Equatoria State, I was given an assignment to
investigate about a lease agreement on land in Mukaya Payam. My terms
of reference were to establish that the objective of the project was
in conformity with government policies, to establish that public
interest and social community benefits were safeguarded and to find
out the response of the community regarding the acceptance of the
project.

In the investigation I observed that after the lease agreement was
signed, about six months earlier the investors and Mukaya Payam
Cooperative were still to consult with the Commissioner of Lainya
County which includes Mukaya Payam and also still to meet with Mukaya
Payam authorities. It would have been appropriate for consultations to
have taken place before the lease agreement was signed.

On the first term of reference the objective of the project to some
extent confirmed with the overall government policies regarding
forestry development. However, what was worrying was the unlimited
access of the project to harvesting current tree growth. Also, the
project’s emphasis on biofuel was not in line with the government’s
policy of focusing on food security where the emphasis was on crop
production.

On the second term of reference the project did not spell out clearly
quantifiable objectives for the benefit of the community. It was
therefore not specifically clear as to what extent the public interest
and social benefits to the local community could have been
safeguarded. The profit sharing was between the Company and Mukaya
Payam Cooperative whose list of members was not made available. It
couldn’t have been that the membership of Mukaya Payam Cooperative was
the entire community sharing the profits from the project.

By the end of the lease agreement any profits generated by the Company
in respect of the Leased Land, the Company would have received on
average 55 per cent of the profits and the Cooperative 45 per cent.

In the project the public interest was simply mentioned in general
terms, for example, such as, “the Company will use its commercially
reasonable best efforts to enhance the lifestyles of the communities
within or adjacent to the Leased Land in which it conducts its
activities.” This general statement was not considered good enough.

What was expected to enhance people’s lifestyles should have been
spelt out clearly and itemized. Public interests were met through the
provision of services such as education, health, roads, food security,
clean drinking water, recreation facilities and benefits to the
disadvantaged in the community.

One the third term of reference the response on the project from a
small sample of community members of Mukaya Payam was informative and
interesting. The Administrator of Mukaya Payam said he did not know of
any Mukaya Payam Cooperative and the Lease Agreement. One prominent
community member said no one informed him of the leasing of Mukaya
Payam land to investors. Three other community members said they did
not know about the Lease Land and added there would be trouble if the
Lease Agreement between Mukaya Payam Cooperative and Nile Trading &
Development, was implemented without wider consultations with Mukaya
Payam communities of the bomas (villages).

All the respondents claimed that what was said of Mukaya Payam
Cooperative was nothing other than the only members who signed the
Lease Agreement. They demanded the list of the Mukaya Payam
Cooperative members to be produced if there was transparency. The
respondents who sounded confident said there was none.

>From the investigation the main finding was that there was a
controversy surrounding the Lease Agreement between Mukaya Payam
Cooperative and Nile Trading & Development for land in Mukaya Payam.
The area of 600,000 hectares was already larger by far in size than
the area of Mukaya Payam.

According to the Statistical Yearbook for South Sudan 2010, on average
the area of Mukaya Payam is about 68,930 hectares leave alone
extending it to 1,000,000 hectares. Granting the Company without any
limitation to explore, develop, mine, produce and/or exploit
petroleum, natural resources and any other minerals that might include
uranium without adequate mechanism in place to monitor the work of the
Company was already controversial.

On the basis of my investigation I recommended that an independent
fact finding committee should have been formed and sent to Mukaya
Payam to determine the legitimacy of the Lease Agreement. The opinions
of the cross-section of the community should have been sought about
the Lease Agreement for an informed decision. The membership of Mukaya
Payam Cooperative should have been determined for transparency and how
individual members in particular and the community at large could have
benefited from the Lease Agreement.

The fact finding committee should have recommended the way forward in
the best interest of the community in Mukaya Payam in particular and
in Lainya County in general. Interestingly three years later the issue
of the Lease Agreement for Mukaya Payam land was still a hot issue. It
seems my recommendations were not acted upon any sooner for unknown
reasons.

In conclusion, according to the Pioneer Weekly Newspaper, Issue 15 Vol
002 of 15-21 August 2011, the Mukaya community has finally put the
issue of the Lease Agreement to rest.

I was delighted that the findings of my investigation were confirmed
and my recommendations for further investigation were most probably
carried out resulting to the cancellation of the Lease Agreement.
There will always be people who do  not care but only have an eye on
excessive gain at the expense of their community.

People only need to be vigilant and proactive in community affairs for
the benefit of all in promoting development, harmony and unity.

The author can be reached at [email protected]

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