Sudan News & Views (No.10)

S U D A N : N E W S & V I E W S

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Issue No 10 15 August 1995
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+ 'Sudan News & Views' is an independent electronic Newsletter working+
+ to advocate peace, human rights and humanitarian aid for the Sudan. +
+ +
+ * Editor: Dr. Yasin Miheisi * +
+ +
+ * Distribution is free of charge. +
+ * Reposting and reproduction are allowed (with acknowledgement). +
+ * To Subscibe send a message to yasin@dircon.co.uk +
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In this issue:
* PEACE TALKS UPDATE
* SSIM APPLIES TO JOIN THE NDA
* UNIVERSITY OF KHARTOUM STUDENTS PROTEST
* BASHIR DISMISSES INTERIOR MINISTER, POLICE AND SECURITY CHIEFS
* SUDAN AND EGYPT
* SUDAN AND LIBYA
* SUDAN AND ETHIOPIA
* SUDAN AND UGANDA
* GOVERNMENT CAMPAIGN AGAINST FAX MACHINES
* ARAKIS FORTUNES IN THE BALANCE
* ECONOMIC POINTERS
* SHORT NEWS ITEMS
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* PEACE TALKS UPDATE

Former President Jimmy Carter had announced in a press conference, held in Khartoum on 23 July, that he was able to secure an agreement of the Sudanese government and both factions of the SPLA (Southern Sudan Liberation Army) to resume peace talks in the near future. The talks will be sponsored by Kenya under the IGADD (Inter-Governmental Authority on Drought & Development) initiative. The cease-fire proposed by Carter was rejected by the Sudanese government who demanded that 72 army officers and soldiers, captured recently by the SPLA, be released first. The 72 army men were delivering military supplies to a rebel faction collaborating with the government led by the break-away commander William Nyon Bani, but Bani switched sides and handed them over to John Garang.

The SPLA, in a recent statement issued in Nairobi, insisted that the government of Sudan should announce its acceptance to the IGADD 'Declaration of Principles' of July '94, before it can agree to resume the peace talks. The Declaration, which calls for unity based on diversity, separation of religion from the state and self-determination for the South, had been rejected in the past by the Sudanese government which resulted in the failure of the previous peace talks in September '94. The SPLA denied any knowledge of the resumption of the peace talks in the near future. The most recent development is the announcement by the Sudanese army general command of the recapture of the town of Kaya in a major offensive on Saturday 12 August, thereby signaling the end of the 4-month cease-fire. Kaya is a small town on the border triangle between Sudan, Uganda and Zaire, which was under the control of the SPLA since 1989. It is considered an important strategic town for the SPLA, with an air-strip and at a cross-road for major supply routes. The SPLA had vacated the town in advance and no casualties were reported.

* SSIM APPLIES TO JOIN THE NDA

In a letter to Mohamed Osman Al-Mirghani, Chairman of the National Democratic Alliance (NDA), Riak Machar, leader of the Southern Sudanese Independence Movement (SSIM), congratulated the opposition alliance for having agreed on self-determination for Southern Sudan and for agreeing to adopt armed- struggle as a means to topple the government of Omar Al-Bashir. He also requested that his movement be allowed to join the NDA as a member. It is worth mentioning that, while Garang controls territory on the Ugandan and Kenyan borders, SSIM controls most of the area adjacent to Northern Sudan. This could prove strategic if the northern opposition is serious in taking up arms and fighting the government from bases on the northern part of Southern Sudan. Machar also does not want to let Garang be the sole representative of South Sudan in the opposition grouping. He believes that if the government of Al-Bashir is toppled, Garang will have the upper hand in Southern Sudan, which might lead to renewed tribal and inter-faction fighting. Mubarak Al-Mahdi, Secretary General of the NDA, said that no decision on SSIM's application has yet been taken. Other opposition sources said it is unlikely that Machar's application would be approved, since this will antagonize the SPLA led by John Garang.

It was also reported that a meeting will be held on 15 August in Nairobi between the three factions in an effort, initiated by USAP (United Southern African Parties), for re-unification. The meeting will be attended by the faction leaders John Garang, Riak Machar and Lam Akol.

This latest initiative comes in the wake of fierce fighting reported between Garang and Machar forces in Western Upper Nile province. SSIM claims that Garang forces had burnt down 35 villages, killing 147 people mostly women and children, destroyed crops and looted 4,000 cattle. The SPLA denied it had carried out the attack, adding it might have been the result of cattle rustling which is common in the area.

* UNIVERSITY OF KHARTOUM STUDENTS PROTEST

A student meeting at the University of Khartoum campus on July 29, addressed by President Omer Al- Bashir, has turned into a riot and a confrontation between students and the police. The meeting was set up by the pro-government student union and was attended by government officials and diplomats. While the President was answering student questions, a crowd of 4,000 students gathered outside the meeting place and started shouting anti-government slogans. They also attacked the Minister of Interior, El-Tayeb Ibrahim Mohamed Khair, and smashed up his car's windows. Riot police interfered using tear gas to disperse the demonstrators, which resulted in the breaking up of the meeting. The President was whisked away, through a side entrance, by his personal guards. The students went on to demonstrate in the streets of Khartoum and clashed with the police. At least 59 students were arrested and 12 were treated from different injuries.

The President was interrupted many times by students attending the meeting and was accused of being a liar when he said the economic hardships are due to the conditions imposed by the IMF.

The Sudanese media played down the incidents claiming it was only a small isolated group that started the troubles. Only one newspaper , Al-Rai Al-Akhar (The Other Viewpoint) reported that police had to use tear gas to break up the demonstrations. The newspaper, which also reported the seizure of a ship smuggling arms to Sudan by the Egyptians, received a strong warning from the Press and Publications National Council. The council accused the editors of 'exaggeration and reporting from Western media sources without any attempt to discredit or redicule these reports'.

* BASHIR DISMISSES INTERIOR MINISTER, POLICE AND SECURITY CHIEFS

In an unexpected move, and what is believed by many to be connected to the incidents at the University of Khartoum campus, President Omer Al-Bashir issued a decree on August 12, by which the Minister of Interior, El-Tayeb Ibrahim Mohamed Khair, had been replaced by Colonel Bakri Hassan Salih, an advisor to the President and a member of the military council since 1989. Nafie Ali Nafie, head of external security, was replaced by Mohamed Ahmed Mustafa Al-Dabi, who was head of military intelligence. General Hassan Dahawi, head of internal security, was replaced by General Abdel Hadi Abdalla. The chief of police and his deputy were also sacked.

Taj el-Sir Mustafa, Minister of Commerce, was dismissed while General Fateh Erwa, rejected by the USA administration for the post of ambassador, was appointed state Minister for Defence.

* SUDAN AND EGYPT

Although the rhetoric between Sudan and Egypt, which escalated dangerously last month, had subsided a little, the air still remains tense, with Egypt quietly pressing ahead with its plans to consolidate its stronghold of the disputed border area of Halayeb. Sudan has called on the Security Council to intervene in the dispute over Halayeb and demand that Egypt settle the issue by peaceful means. Sudan has also accused Egypt of forcing 28 Sudanese families out of the area as part of its harassment of Sudanese living there.

On the other hand, Egypt claimed it had obtained fresh evidence of the involvement of Sudan in the assassination attempt on the Egyptian President, Hosni Mubarak, in Addis Ababa on June 26. A statement by the Interior Ministry named three of the hit-squad who it said were trained in a camp 40 miles south of Khartoum. It said the information came from the interrogation of five suspected militants arrested after entering Egypt from Sudan.

Egypt also said it had received assurances from Yemen denying the allegation by the Sudanese government that the attackers on Mubark's motorcade in Addis Ababa, entered Ethiopia from Yemen and were carrying Yemeni passports. Yemen informed Egypt that it totally rejects Khartoum's attempts to involve Yemen in this affair.

On another development, the Egyptian authorities announced the seizure of a ship carrying a consignment of arms destined to Sudan. The ship, Angelica-M, registered in Honduras, was sailing from Cyprus to Sudan through the Suez Canal. When Egyptian authorities ordered the vessel searched and its Dutch captain refused, the police opened fire and stormed the ship. It was announced that the ship was carrying arms, not declared with the contents of the ship's load and were believed to be destined for Sudan for terrorist activities. The captain and crew of the ship were arrested on suspicion of smuggling and are being interrogated by the Egyptian security.

* SUDAN AND LIBYA

The Libyan security forces had staged a vigorous campaign against Islamic groups following the incidents in Benghazi, where a group of Islamic extremists raided a prison in Benghazi to free one of their members. Egyptian and Sudanese extremists were implicated in the incident. The leader of the group was said to have trained in Sudan and had managed to escape across the desert to Sudan. Relations between Libya and Sudan are now passing through a silent crisis.

Libya used to turn a blind eye to the activities of Islamic groups which were mainly targeting Egypt and Algeria.

Although the incident was quickly controlled, it made the Libyan authorities aware of the dangers these movements might pose to their national security.

The security forces took quick measures. More than 5,000 were arrested. A road, used by militants to transport arms from Sudan to Algeria, previously tolerated by the authorities, had been closed. Thousands of Egyptians, Sudanese and Palestinians, suspected of ties to these groups, were deported. Thousands of deported Sudanese are now massing on the Egyptian-Libyan border because Egyptian officials are refusing to allow them into Egypt without entry visa.

* SUDAN AND ETHIOPIA

The relations between Sudan and Ethiopia are also heading towards an impending crisis. Ethiopia had demanded that Sudan hands over three Egyptians, believed to be involved in the assassination attempt of President Mubarak in Addis Ababa on June 26. The Ethiopians were able to obtain a detailed account of the plot from their investigation and interrogation of three suspects captured two weeks ago.

Contacts between Ethiopian and Sudanese authorities are being kept secret, but sources had indicated that Sudan showed no signs of cooperation. In a show of its dissatisfaction with Sudan, Ethiopia had canceled plans to open consulates in a number of Sudanese towns. It even brought back the office's furniture from Port Sudan. Some observers believe that recent changes in the security leadership in Sudan might be related to this case.

* SUDAN AND UGANDA

Although mediation efforts by the President of Malawi, Bakili Muluzi, had resulted in a meeting between Al-Bashir and Museveni in June and an agreement to restore diplomatic relations, severed in April, the tensions between the two countries seem to be growing unabated.

Iran had announced on August 11, that it is ready to mediate between Sudan and Uganda to resolve the differences between the two countries. It had also called on Uganda to close its borders to rebels fleeing government troops in Southern Sudan.

Uganda had again accused Sudan of supporting Ugandan rebels and said it is ready to pursue the rebels inside Sudanese territory. A high-ranking Ugandan official said that 'in spite of repeated efforts to resolve this matter by peaceful means, the Sudanese government has continued to support the rebels. So we are now seeking permission from parliament to follow them and pluck them out of their hideout in Southern Sudan. There is simply no other way to end this rebellion'.

* GOVERNMENT CAMPAIGN AGAINST FAX MACHINES

The security forces in Khartoum had recently raided a number of offices and houses of Sudanese businessmen who owned fax machines, searching for foreign press cuttings and opposition literature which are believed to be received by fax from abroad, and distributed widely in Khartoum. Many fax machines were confiscated.

One prominent businessman, Sid Ahmed Abdalla Akod, almost 70-years of age, had been arrested on July 16. He is still being kept in detention, and Amnesty International had started a campaign for his release. To be able to use a fax machine in Sudan, you have to obtain the approval of the Ministry of Commerce, a license from the Ministry of Telecommunications and a clearance for the security forces.

* ARAKIS FORTUNES IN THE BALANCE

Although the Canadian company, Arakis Corp, claimed that it had completed the final design of the oil pipeline from central Sudan to Port Sudan, and that construction equipment and materials are currently being shipped to Sudan, the government of Sudan seems to have other plans in mind. The Sudanese Finance Minister, Abdalla Hassan Ahmed, said in a recent interview to an international Arabic daily, Al-Sharq Al-Awsat, in reply to questions about Arakis and the oil pipeline, 'We have an agreement with Arakis for the exploration of oil, which has expired and awaiting a decision to renew. The pipeline is a totally separate project. Arakis assured us that they had secured the financing through a Gulf Arabic Company. But despite that, there are many options open to the Sudan Government to execute the pipeline project and Arakis is not the sole player'.

This clearly illustrates that there are other players in the field. In the last few weeks, Salah Karrar, then Minister of Energy, has been going around shopping. He signed agreements for oil development in Sudan with Russia, China, Iraq and Iran.

Arakis market fortunes had been fluctuating rapidly in recent times. The company's stock shares rose to $22-5/8 last week due to renewed optimism. Worries that the financing pact with the AGI (Arab Group International) was in jeopardy caused Arakis shares to drop by 40% in the past two weeks from a high of $25-5/8 in late July to $16-1/2 on Monday August 7. AGI, led by Saudi prince Sultan Ben Saud Ben Abdullah Al-Saud, promised to close the first $345m of funding by September 15 towards gaining a 40% stake in Arakis. A further $405m has been pledged for the construction of the pipeline.

Analysts said doubts still linger about the financing deal partly because the identities of the investors in AGI are unknown. Arakis said they are wealthy private investors who do not want to publicise their activities.

Arakis will hold a shareholder meeting in Vancouver August 24 to approve the financing deal. The Arakis board will also appoint Al-Saud chairman of the company.

The most serious threat to Arakis fortunes in Sudan came in the form of warnings issued separately by both the SPLA and SSIM to Arakis to get out of Sudan or risk coming under attack. It was told that its oilfield installations in Sudan will be considered as legitimate military targets. The SSIM statement said 'it will work aggressively to destroy with impunity any company seeking to develop the oil for the terrorist and Islamic fundamentalist regime in Khartoum'. The warning had an immediate effect. Arakis stock started to decline as of yesterday. Asked if this latest warning was a concern to Arakis, chief executive Terry Alexander said, "No...We don't even know who these people are. We have no comment."

It is worth mentioning that, the American oil company, Chevron Corp, was forced to abandon its operations in the same oilfields and sell out its concessions and equipment, after being attacked by the SPLA in 1983.

* ECONOMIC POINTERS

[] The Minister of Finance, Abdalla Hassan Ahmed, said upon his return from his latest round of talks with the IMF in Washington last week, that Sudan had received a positive response from the IMF officials. He added that the IMF had asked Sudan to continue implementing all of the policies agreed, which includes economic liberalisation, abolishing of subsidies of basic commodities, lifting of price controls and selling of state corporations to the private sector. The London Financial Times, however, reported that the fund administrators expressed dissatisfaction with the economic record of Sudan and warned the Finance Minister that Sudan could face expulsion unless it repays the $1.7 billion owed to the fund and works to bring its budget deficit to zero. The IMF decided to extend the period for monitoring Sudan's economic performance till the end of the year.

[] The government announced that tax, custom duties and price controls on imported wheat will be lifted, in a bid to encourage the private sector to make up for the shortfall in local production. Domestic wheat production accounted for only half of the 600,000 tons required annually. The Minister of Commerce said Sudan needs to import 200,000 tons of wheat, but the government is short of cash. It should be noted that Sudan had exported 22,867 tons of sorghum to Japan in May and June '95 alone.

[] A report presented to the TNA (Transitional National Assembly), by the Ministry of Finance, had estimated the total bad debts owed by customers to the banks in Sudan as 27 billion S.P. (Sudanese Pound). The report said the bad debts had negatively affected the economic activity. It claimed that the expansion and spread of banking had negative aspects including the recruitment of inexperienced bank managers and the inability of the central bank (Bank of Sudan) to monitor the activities of the large number of branches which had reached a total of 679 branches. Explaining the reasons for the accumulation of debts, the report said banks grant loans that are far greater than the actual activities undertaken. In many cases, the loans are not used for the purposes for which they were granted. There is also no action taken in cases of failure to repay.

[] The sale of the leading state-run Bank of Khartoum to private investors is expected to be announced shortly. Bank of Khartoum was founded in 1913 as Barclays Bank until its nationalistion in 1970.

* SHORT NEWS ITEMS

- The General Secretary of the NDA, Mubarak Al-Mahdi, had announced that a radio broadcast, 'NDA Voice', will start transmission on August 7, aimed at mobilising opposition to Khartoum's NIF-backed military government. The location of the radio transmission was said to be in areas controlled by the SPLA in Southern Sudan. The short-wave transmission will be for two hours each day. No feedback has yet been received on the reception of the broadcast inside Sudan.

- It is now required of all journalists in Sudan to be officially registered with the government- appointed Press and Publications Council. Those practising without the necessary papers face imprisonment and a fine of 500,000 S.P. The council had granted registration to 596 journalists so far. Some prominent journalists were asked to sit for an examination, while others had their applications rejected. Foreign correspondents and foreign journalists on assignment are also required to obtain the license from the council before they are allowed to work.

- The Sudanese authorities had announced the introduction of visa requirements for Arab travelers to Sudan, as from August 12, '95. Sudan had, in 1990, abolished the visa requirement for all Arabs and Muslims. Exempted from the visa requirement are two Arab countries; Syria and Iraq and three African countries; Ethiopia, Tanzania and the African Central Republic. The Interior Minister said the measures were taken 'because the tolerance and flexibility of Sudan had been misused by some criminals who are wanted in their countries'. He mentioned Carlos 'The Jackal' as an example.

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Message-Id: 199508151906.PAA16056@orion.sas.upenn.edu
Date: Tue, 15 Aug 1995 19:43:39 +0100
From: Yasin Miheisi yasin@DIRCON.CO.UK
Subject: Sudan News & Views - 10

Editor: Ali B. Ali-Dinar

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