Business Corruption

Companies should know that the bidding process for government contracts is not transparent. According to Global Integrity 2006, contracts seem to be rendered to people with close connections to the government who, in turn, issue inflated invoices. According to a 2009 news article by BBC News, relatives of high-level government officials often own companies that do business with the government and provide their relatives in government with kickbacks in exchange for this business. The need to provide kickbacks accounts for, at least in part, inflated invoices.

Companies are recommended to use a specialised public procurement due diligence tool in order to help mitigate the corruption risks associated with public procurement in Sudan. For more information on public procurement see 'Public Anti-Corruption Initiatives' in the Initiatives section

Political Corruption

Public contracts and loans are known to be given to friends and relatives of government officials without due bidding process. According to Global Integrity 2006, bidding for government contracts, particularly in the oil sector, is still an opaque process, and contracts are awarded to people who are closely connected to the political elite.

Examples of large scale fraud are found in Southern Sudan, where phantom projects in the disguise of public procurement contracts are set up. For instance, as a 2007 article by the Sudan Tribune explains, phantom contracts are reportedly given without public bidding or competition, and the projects are never completed.

The British publisher, Macmillan admitted to having paid bribes to public officials in South Sudan between 2008 and 2009, in order to win a contract, which was part of a USD 45.9 million project to develop the educational system South Sudan. According to a May 2010 news article by The Guardian, Macmillan is now listed on the World Bank’s List of Ineligible Firms & Individuals, and is banned from any of its contracts for the next six years.

For more information on public procurement see 'Public Anti-Corruption Initiatives' in the Initiatives section.