IGAD Proposals for the Sudanese Peace Negotiations

In order to bring the truth to the masses of the Sudanese people, the new Kosh decided to republish this important document that the Salvation Government is trying to distort in order to escape from reaching a resolution to the Sudanese crisis.

(To clarify the point of view of Sudanese civil society organizations for peace (July 5, 2002): click here)

IGAD, the sponsor of the Sudanese peace negotiations between the Sudanese government and the Sudan People's Liberation Movement, presented the broad outlines of a comprehensive and final agreement that would put an end to 20 years of civil war. This document was presented to the two parties to the conflict during the opening of the sixth round of negotiations on July 6 in the Kenyan city of Nkoror, but the government rejected it as unbalanced, while the SPLM accepted it. IGAD insists on passing this document as a basis for discussion in the seventh round, which begins on Wednesday, July 23, as a basis for discussion, and not as a final document. The document begins by reviewing the issue of the three so-called marginalized areas.

The following is part of the document: (Quoted from our colleague Sudanese Online)

1.0   Abyei:

1.1 Determining the fate of Abyei, and whether it will be administered as part of Bahr El Ghazal, or remain in West Kordofan State, will be the subject of a referendum.

1.2 The referendum referred to in 1.1 above will be conducted by:

1.2.1 The independent Abyei Referendum Committee, consisting of (3) members appointed by each of the parties and two members from the international community agreed upon by the parties;

1.2.2 Before the elections that will be held at the end of the first half of the transitional period, as determined by the Committee;

1.2.3 In order to allow all those who were residing in Abyei prior to the signing of the Addis Ababa Agreement in 1972 or their adult successors, including all persons who have been displaced from there and wherever they currently reside;

1.9 A fair and remunerative portion of national resources and revenues will be allocated to providing services and establishing infrastructure.

1.9.1 The National Government shall guarantee an annual transfer to the Abyei Area of 1.2 billion Sudanese dinars (or in any case the equivalent in the new national currency if and when issued), during the first four years of the transitional period.

2.0 The Nuba Mountains (South Kordofan) 2.1 The Nuba Mountains are subject to the following measures:

2.1.1 It will have its own state legislature, which will be exclusively empowered (and alone) to make laws on all issues listed in the Schedules prepared in Final Draft 2 of the Protocol.

2.1.2 It will have executive authority appointed by a governor elected by the people of the state who will report to the state legislature.

2.1.3 It will have a civil service to supervise the laws of the state and provide public services in the state.

2.1.4 It will have the right to obtain a fair and remunerative share of the national income and to develop its own resources in accordance with the provisions of the Interim National Constitution, and to impose taxes that include at least those specified in the tables referred to above.

2.1.5 It will be entitled to an appropriate percentage of the North’s share of the following:

2.1.5.1 Members of the National Council;

2.1.5.2 National Ministers;

2.1.5.3 Members of the Council of States (two from each state)

2.1.5.4 Senior positions in the civil service.

2.2 It has the right to cooperate and coordinate with other states and the national government on issues of common interest.

2.11 Free and fair elections to elect the state legislature shall be held at the end of the first half of the transitional period. The parties running in these elections, regardless of the other decisions of the peace agreement, can seek to obtain a mandate that determines the constitutional status of the state. According to this mandate, this elected state legislative body can decide, after consultation with its constituents, to negotiate directly with the national government, in order to raise its constitutional level or expand its powers, bearing in mind that any changes in this regard should be consistent with the relevant constitutional texts.

2.12 In the period leading up to these elections, the parties agree to:

2.12.1 Composition of the transitional state legislature.

2.12.2 The Transitional State Executive Council, provided that the persons appointed to its membership are from the State, and 2.12.3 the persons who will represent the State in the National Legislative Councils.

2.13 The Parties recognize the need to ensure religious, linguistic and cultural pluralism and tolerance, which were characteristics of the mandate.

2.14 The two signatory parties to this agreement are keen to combat any call or incitement to attack or harm the citizens of the state.

2.15 During the period leading up to the elections, the legislature chooses the governor of the state and is approved by the presidency. The Nuba Mountains State will submit a list of candidates for the presidency, specifying who will be given preference, provided that the presidency will choose, through consensus, the governor of the state from the list submitted to it.

2.16 The state shall form a land sub-committee, whose powers shall be to recommend land ownership, land reform courses, resolve land disputes, and issue decisions on repossession, compensation for land confiscation, and cancellation of property rights.

3 South Blue Nile:

3.1 Southern Blue Nile (referred to as Blue Nile State) is subject to the following arrangements:

3.1.1 It will have its own legislative body that will be empowered to make laws for the State, (alone) and jointly, on all issues included in the Schedules in Draft 2 of the Final Protocol.

3.1.2 It will have an executive body (council of ministers) appointed by a governor elected by the residents of the state who will be accountable to its legislature.

3.1.3 It will have a state civil service to implement state laws and provide public services in the state.

3.1.4 It will have the right to obtain a fair and remunerative share of the national budget, to form its own budget in accordance with what is stipulated in the Interim National Constitution, and to impose taxes, which include at least those specified in the tables referred to above.

3.1.5 She will be entitled to receive an appropriate percentage of the North’s allocations as follows:

3.1.5.1 Members of the National Assembly;

3.1.5.2 National Ministers; 3.1.5.3

Members of the Council of States (two members for each state);

3.1.5.4 Higher positions in the civil service.

3.2 It will have the right to cooperate with other states and conclude agreements with them and with the national government to discuss issues of common interest.

3.3 Within the framework of the Interim National Constitution, it can establish state courts to implement its laws, in addition to the national laws applied in the state.

3.4 The state shall have at least the powers of the other states, and in addition to that it shall have the following:

3.4.1 Supervising education at the primary and secondary levels, and those aspects of educational policy and curricula that guarantee pluralism and educational methods. If a dispute arises between the national government and the state government over the language and over the languages ​​of instruction and curricula, the state proposal shall prevail over everything else.

3.4.2 The State has the right to freely decide the content of the State’s laws, whether civil or criminal, subject to the Interim National Constitution alone.

3.5 Blue Nile State will have exclusive powers, both legislative and executive, with regard to the state’s resources in addition to other matters included as powers of the state in the above-mentioned tables, which include, among other things, matters of culture, language, religion and customs.

3.6 This state will have additional resources allocated to finance reconstruction and resettlement in areas affected by the war.

3.6.1 The National Government shall ensure the transfer of 3.5 billion Sudanese dinars (or, in all cases, the equivalent in the new currency if issued), annually, during the first four years of the transitional period, 3.9 billion Sudanese dinars in the fifth year, and 4.4 billion Sudanese dinars in the sixth year, to the state government to cover the cost of public expenditure in the budget. Starting from the fourth year of the transitional period, minimum transfers increase by the inflation rate targeted by the annual national budget. These arrangements will be reviewed at the end of the transitional period.

3.7 A state may establish its own state constitution, provided that it is only consistent with the Interim National Constitution.

3.8 The state has the right to establish and manage its own police forces.

Ownership of land and natural resources:

Land: * For the purposes of this agreement:

*Land means the surface and what is beneath it and includes ownership rights.

* “Rights” include ownership rights, but are not limited to them.

* “Subsurface natural resources” means naturally occurring minerals beneath the Earth’s surface.

* Without prejudice to the positions of the parties regarding the ownership of underground natural resources, including South Sudan, this agreement is not intended to determine ownership of those resources. The parties can establish a mechanism to resolve this issue.

* The Parties agree that the organization, management and mechanisms for sharing wealth from underground natural resources are resolved below.

* The Parties note that the regulation of agricultural cycle, use and exercise of land ownership rights shall be joint powers exercised at the relevant levels of government, taking into account the regulating principles contained elsewhere in this Agreement, such as environment and water.

* The rights to dispose of lands owned by the Government of Sudan are exercised by the corresponding government levels or those responsible for this.

* The Parties affirm the principle that Sudanese land law, including South Sudan, is based on, among other things, local customary laws and traditional collective rights to land ownership. * The two parties agree to establish a mechanism that will develop and amend these laws to adopt global trends and practices.

Land Committee:

* A National Land Commission (Land Commission) shall be consistent with other provisions contained in other parts of this Agreement. This committee will have subcommittees in cooperation with the regional and state governments, especially the government of South Sudan. The Lands Committee and each of its branches shall have the powers to inspect and make recommendations to the corresponding levels of government regarding the following issues:

* Locations where customary laws and collective ownership of land should be recognized.

* The relationship between customary and communal land relations and other rights to land.

* Criteria on the basis of which customary and collective rights to land ownership can be recognized.

* The principles upon which compensation is decided and to whom it is paid, after recognizing customary and collective rights to land ownership.

* The Land Committee and its branches at the state and regional levels shall be independent and authorized to exercise its full powers. She can be assisted by specialists in her fields of work.

* The Land Committee establishes national policies governing the performance of its functions and its state and local subcommittees, and supervises the work of these subcommittees.

* The performance of the Land Commission and its state and local subcommittees is governed by international best practices and globally accepted standards for the recognition of customary laws.

* The Land Commission and its state and regional branches can organize hearings and determine its work procedures.

* Without prejudice to the powers of any court, the Land Committee and its state and local branches can propose mediation between the parties that submit complaints to it about any issue related to land, to reach an agreement on accepting customary law procedures and the collective right to own land, and to reach an agreement between the parties on this basis.

* Any amendment to the law must take into account international treaties on human rights signed by the Government of Sudan, and the recommendations of the Land Commission.

* All levels of government in Sudan should support this process and the recommendations of the Land Committee.

Underground natural resources:

* The Parties agree that the basis of a common and specific framework for dividing wealth resulting from natural resources from below the surface of the Earth must include the following:

* The framework adopted for dividing the wealth resulting from natural resources under the surface of the earth must balance the need for national development, reconstruction and development of South Sudan.

* Persons who have ownership of land are entitled to compensation on just grounds resulting from the seizure or development of land for the purpose of extracting the natural resources beneath the surface of that land over which they have ownership rights.

* Persons with ownership rights to land must be consulted and consented regarding decisions to extract underground resources from the area over which they have ownership rights and must have a share in the benefits of developing those resources.

* The parties agree to establish a mechanism to govern the development of underground non-petroleum natural resources.

Petroleum Authority:

* The parties agree to establish a Petroleum Affairs Authority before the transitional period. The Petroleum Affairs Authority shall be responsible to the National Assembly for its financing.

* The agreement on development and exploration for all petroleum resources takes place only through the Petroleum Authority.

* In view of the provisions contained elsewhere in this agreement, the Petroleum Authority shall consist of these persons or their representatives:

*Minister of Energy, Chairman and Rapporteur. Permanent member.

* Minister of Finance and National Economy, permanent member.

* Minister of Investment, permanent member.

* Minister of International Cooperation, permanent member.

* Representatives of the Government of South Sudan, permanent members.

* Representatives of oil-producing states, members

*The Auditor General is, ex officio, a permanent member.

* The Petroleum Authority shall have the following powers:

* Formulating general policies and directives related to the development and regulation of the petroleum sector. These policies and guidelines take into account:

* National interest and public benefit.

* The interests of the states concerned.

* The interests of the local public in the concerned states.

* Environmental protection, biological diversity and cultural heritage.

15. Current oil contracts

15.1 The Sudan People's Liberation Movement may appoint a limited number of representatives to review all current oil contracts, provided that the representatives have the right to involve technical experts. Those familiar with the oil contracts will sign an agreement to maintain the confidentiality of the information they have accessed.

15.2 Oil contracts may not be subject to further negotiation.

5.31 If oil contracts are deemed to cause major environmental and social problems, the Government of Sudan must implement all measures to address these problems.

16. Partnership in oil revenues

16.1 The parties agree on a formula for sharing revenues from oil resources, which will be specified in this agreement.

16.2 For purposes of this Agreement, “Net Oil Revenues” will be the amounts of the net proceeds of (a) exports of Government oil and (b) shipments of Government oil to refineries. The value of oil exports is calculated on the basis that the costs of delivering it to tankers are not borne by the buyer, provided that the cost of the pipeline to deliver oil to Port Sudan is deducted from him. The value of the oil delivered to the refinery is calculated on the basis of its average cost price without taking into account the cost of transporting it to the buyer during the last month in which there were exports, deducting (a) the cost of transportation through the pipeline that was imposed to transport the oil to Port Sudan and (b) the money paid to the Sudan Petroleum Corporation, which does not exceed 5 percent of the net value of the oil before the fees imposed by the Sudan Petroleum Corporation. Additional oil revenues that may come in the future will be part of net oil revenues as the concerned authorities deem appropriate.

16.3 An account will be opened to stabilize oil revenues from net government oil revenues from actual export sales in excess of any fixed price agreed upon. This price will be determined annually as part of the national budget, provided that it reflects changing economic conditions.

16.4 Following payment into the Oil Revenue Stabilization Account:

16.4.1 A percentage of 2 percent of the net oil revenues from all current oil production contracts at the beginning of the transitional period will be transferred to the oil-producing states, provided that it is proportional to each state’s oil production.

16.4.2 2 percent of net oil revenues from contracts that did not produce oil at the beginning of the transitional period if they were signed after the specified date will be transferred to the producing states, provided that this is proportional to the quantity produced in each state.

16.5 48 percent of the new balance shall be paid to the Government of Southern Sudan from the proceeds of the contracts referred to in the previous paragraph after payment of the transfer referred to in Paragraph 16.4.2. The remaining balance shall be paid to the Government of Sudan. 16.6 The “Future Generations Fund” will be established once the country’s oil production volume reaches. To two million barrels per day. The aforementioned production volume of one million barrels per day may be reduced within the framework of the usual procedures for the national government budget.

16.7 The Parties agree that all special accounts/funds referred to in this Chapter/Agreement and future accounts shall be part of the budgetary procedures and processes.

17. Other revenues:

17.1 The Government of Sudan shall have the right to impose, increase and collect the taxes set forth below and to collect revenues from the following sources:

17.1.1 Individual income tax

17.1.2 Business profits tax

17.1.3 Customs and import taxes

17.1.4 Revenues from seaports and international and national airports

17.1.5 Service Fees

17.1.6 Natural resource revenues as defined in this document.

17.1.7 National government projects

17.1.8 Value-added tax, general services and retail taxes on goods and services.

17.1.9 Production fees

17.1.10 Any other taxes agreed upon in these negotiations.

17.1.11 Loans, including borrowing from the Central Bank and the private sector.

17.2 The Government of Southern Sudan shall have the right to receive revenues from the following sources and to raise and collect the taxes set out below:

17.2.1 National revenues assigned to the Southern States from the National Revenue Fund as specified in Paragraph 18.1 of this Agreement;

17.2.2 all proceeds from the identified resources referred to in 17.3 of this Agreement;

17.2.3 “South Sudan Development and Reconstruction Fund”;

17.3.3 Licenses;

17.3.4 State income tax;

17.3.5 Fees imposed on tourism;

17.3.6 The Government of South Sudan’s share of:

17.3.7 State government projects and nature reserves therein;

17.3.8 Stamp Duty;

17.3.9 Agricultural taxes;

17.3.10 Foreign grants and aid;

17.3.11 Excise duties taxes;

17.3.12 Border trade fees and duties imposed in accordance with national legislation;

17.3.13 Other state taxes that are not considered a violation or excess of national or Government of Southern Sudan taxes;

17.3.14 any other taxes agreed upon from time to time;

17.3.15 Loans and borrowings in accordance with what is stated in the sections on banks and external financing in this agreement.

18. Allocate revenues collected at the national level and distribute them fairly among the national government, the Government of Southern Sudan, and at the state level.

18.1 All revenues collected nationally for the benefit of the national government or by it shall be deposited in a national revenue fund managed by the public treasury. This fund includes all accounts and sub-accounts in which all funds payable to the government are collected or deposited.

18.2 All government revenues and expenditures will be subject to budgetary procedures and processes and must be declared. 18.3 Within its nationally collected budget, the government allocates an equitable amount to the state level and the level of the Government of Southern Sudan in accordance with the formula and standards agreed upon between the parties.

18.4 The National Government shall guarantee the transfer of a minimum of 35 billion Sudanese dinars (or the equivalent of the new currency whenever issued) annually to the Government of Southern Sudan and the southern states to cover public expenditure. Starting from the fourth year of the transitional period, the minimum value of financial transfers will be raised in line with the inflation rate as specified in the annual national budget with regard to this aspect. This arrangement will be reviewed at the end of the transition period.

18.5 The government is transferring an amount to cover reconstruction, development and reintegration expenses equal to 12.5 billion Sudanese dinars (0.3 percent of GDP) during the first year, in addition to about 32.9 billion Sudanese dinars (0.7 percent of GDP) in the second year and 58.3 billion, then 71.3 billion, then 80.2 billion, then 90.3 billion (1.2 percent of GDP) from the third to sixth year. For the purposes of this agreement, the gross domestic product used in calculating these financial transfers will be the same as that used in formulating the annual general budget. This agreement will be subject to review at the end of the transitional period.

18.6 The states and Government of Southern Sudan shall have the right to retain and dispose of other incomes collected under their taxation powers.

18.7 Financial allocations related to the states of Southern Sudan will be implemented through the Government of Southern Sudan, with the exception of the revenues referred to in paragraphs 16.4.1 and 16.4.2, which will in all cases be paid directly to the state concerned. 18.8 In its administration of revenues or within its powers related to determining financial allocations, the Government of Southern Sudan may not stop or refrain from paying any funds payable to any of the states of the South or discriminate between them on political, ethnic, linguistic or religious grounds with regard to the payment of financial allocations.

19 Monitoring Committee for determining financial allocations

19.1 In order to ensure transparency and fairness in both determining the financial allocations for the revenues collected nationally to the states, regions and the Government of Southern Sudan, and for the purpose of determining the value of the revenues collected from natural resources, a committee will be established to monitor the financial allocations. This body will consist of experts nominated by the states, regions, the Government of Southern Sudan and the national government. Decision-making arrangements will be based on agreement between the parties involved in these negotiations.

19.2 The committee monitoring the determination of financial allocations will be responsible for ensuring the immediate transfer of these allocations and also ensuring the payment of dues to and from the National Revenue Fund and the most appropriate exploitation and sharing of resources.

20. Internal trade in the state

20.1 There will be no legal impediments to trade or the flow of goods, services, capital or labor within or between states.

21 Government responsibilities

21.1 Any debts or liabilities incurred by any government entity will be its responsibility.

22 Division of government balances:

22.1 The government’s balances will be divided in a fair and equal manner, provided that the division is based primarily on determining the financial allocations to the government agency responsible for work in the field related to the allocations referred to (allocations for school construction are directed to the government agency responsible for education). In the event of a dispute, the parties agree to refer this dispute to a committee composed of a representative of each party to this dispute and an expert agreed upon by the aforementioned parties.

23 Accounting standards, procedures and financial responsibility

23.1 All levels of government adhere to agreed accounting standards and procedures. There will be institutions at the state, local and national government levels to ensure that financial resources are distributed in accordance with the agreed-upon government budget and spent as required.

23.2 To ensure the effective functioning of such institutions, there will be an independent national audit committee whose responsibility will be focused on the tasks referred to above and in determining audit standards. Appointment to this committee will be made by the Chairman.

23.3 All government agencies place all income and revenues they receive in public accounts that are subject to audit and responsibility.

24 Financing the transitional period:

24.1 The National Government shall be responsible, at least during the period before the transitional period, for paying transition expenses. The Government shall pay the necessary funds to establish the new transitional governments at the state and Government of Southern Sudan levels as soon as these institutions can be established. National government officials will participate in the donor conference that will be held after the signing of the agreement for the purpose of requesting international support.

24.2 Upon signing the Comprehensive Peace Agreement, the Parties to the Agreement shall establish a National Transitional Team to undertake the following: 24.2.1 Prepare budget estimates for the establishment of governments at the national, Government of Southern Sudan and state levels as stipulated in the Peace Agreement;

24.2.2 Organizing and preparing the documents required to hold the donor conference, including the conference agenda and invitations, and being responsible for the conference’s general secretariat;

24.2.3 Prepare strategies to collect donations and contributions and help identify potential sources of funds needed for a smooth and appropriate start to the transitional period.

25 Fiscal policy, currency, and the banking system:

25.1 There will be a single financial authority represented by the Central Bank of Sudan, which will be responsible for formulating and implementing the country’s financial policy. All financial institutions will be subject to the rules and regulations determined by the Central Bank of Sudan, except for the exceptions contained in this agreement in accordance with the Machakos Protocol dated July 20, 2002.

25.2 There will be a unified currency in the country. The Central Bank will adopt a program to issue the new currency.

25.3 The Parties agree that South Sudan has special financial and banking needs.

23.4 The Central Bank of Sudan shall establish the “Bank of South Sudan” as its subsidiary to meet the financial needs of the South Sudan region within the limits of the national financial policy.

25.5 The Central Bank of Sudan will appoint a deputy governor of the bank who will be entrusted with the task of chairing the “Bank of South Sudan”, provided that he is nominated by the Government of South Sudan and appointed by the Governor of the Central Bank of Sudan.

25.6 A South Sudan Banking Commission will be established which will act as an independent body with powers to establish and supervise financial institutions in South Sudan.

25.7 The President of the Central Bank of South Sudan shall be responsible for appointing the Chairman of the South Sudan Banking Commission, and the Commissioner shall also appoint competent members of the Commission.

25.8 The Central Bank of Sudan shall provide the necessary technical, functional and secretarial assistance for the Southern Sudan Banking Commission to carry out its responsibilities.

25.9 In the event that the South Sudan Banking Commission fails to discharge its responsibilities in line with the specified standards and laws, the Bank of South Sudan shall assume these responsibilities until the necessary remedial measures are in place.

25.10 Southern Sudan shall be the headquarters of the financial institutions established by the Southern Sudan Banking Commission, provided that branches of these institutions shall not be established in other states in Sudan. However, these institutions will be permitted to establish contact and working relationships with institutions in other states in Sudan, provided that this is subject to the provisions in force in these states.

25.11 The Bank of Southern Sudan shall be responsible for establishing the central banking facilities necessary for the functioning of regular and Islamic financial institutions located in South Sudan.

25.12 The Central Bank of Sudan shall be responsible for establishing and supervising national financial institutions. Financial institutions established at the national level will be permitted to manage and establish branches in all states of Sudan. 25.13 All financial institutions shall be subject to recognized international principles and standards regarding regular and Islamic financial affairs as determined by the Central Bank of Sudan.

25.14 All financial institutions will be obligated to implement the financial policies set by the Central Bank of Sudan. 25.15 The Government of Southern Sudan and the states may borrow on the basis of their creditworthiness. These and all other regional governments will not have the right to borrow from the Central Bank of Sudan. Moreover, the central government or the Central Bank of Sudan is not required to provide guarantees for the debt of state and regional governments.

25.16 All state and regional governments provide financial information for statistical purposes to the appropriate bodies of central government.

26 External financing:

26.1 Borrowing

26.2 The Government and states of South Sudan may borrow from abroad on the basis of their creditworthiness.

26.3 Borrowing shall be carried out by the state and regional governments in a manner that does not harm the country’s overall economic policies and shall be consistent with the goal of preserving external financial development, and all borrowing measures by the state and regional governments shall be in line with the specifications determined by the central government.

27. Credit funds

27.1 The Parties acknowledge the need to establish two trust funds, one allocated to the National Government and the other to the Government of Southern Sudan.

27.2 The credit funds of the Government of South Sudan are called the “South Sudan Reconstruction and Development Fund” and the credit funds of the national government are called the “National Reconstruction and Development Fund.” 27.3 The Government of Southern Sudan will be responsible for spending from the “South Sudan Reconstruction and Development Fund”, provided that the fund is managed on the basis of transparency and professionalism, based on the supervision of the committee appointed by the Government of Southern Sudan, provided that the committee includes a representative of the Central Ministry of Finance and the Office of the Auditor General.

27.4 Establishing the “National Fund for Reconstruction and Development” will be the responsibility of the central Ministry of Finance, with its mission focused on developing areas affected by the war and less developed areas outside the borders of South Sudan. The Fund will have a steering committee with appropriate representation of the regions concerned. He shall present to the National Council and the state councils, which will be responsible for supervising the Fund, a comprehensive report on the income, expenditures, and projects supported by the Fund.

27.5 The two funds support ongoing urgent expenditures and investment budget expenditures on the basis of clear and specific criteria for financing elements. The two funds also have the right to request and collect financial appropriations from external donors.

27.6 The Parties agree to establish an active joint body of the two Funds for the purposes of coordination and oversight of the Funds and other Funds and Trusts.

27.7 All funds and entities concerned with credit funds shall submit an official report on the flow of credits to the Central Bank of Sudan and to the responsible oversight body.

27.8 To ensure appropriate responsibility for the financial appropriations spent through the two funds, the concerned parties shall conduct the necessary review of the use of the credit funds within six months of the closing of the recipient’s fiscal year.

28 Flow of external financial resources and appropriations:

28.1 Financial appropriations may be directed during the transitional period and immediately before it to finance activities that benefit both parties.

28.2 The flow of external financial credits shall be through special bank accounts established by the Central Bank of Sudan. For the transitional period (a) the flow of external appropriations to the National Fund will be through the Central Bank of Sudan, (b) the spending of appropriations for the Southern Fund will be through a special account in the Central Bank of Sudan allocated to the Bank of South Sudan or through arrangements determined by the credit funds designated for spending on specific purposes and projects.

28.3 You must follow all necessary steps and procedures when submitting reports to the Central Bank and the entity responsible for the funds.

28.4 Parties are committed to implementing financial reporting mechanisms and responsibilities. All state and regional governments in Sudan are committed to submitting all information related to financial and accounting aspects to the competent governmental bodies for statistical and other purposes related to unifying information in accordance with the standards set by the national government.

28.5 In recognition of the importance of external financing for the success of the national government and the development process, the Parties agree to the following:

28.5.1 Report such external financial transactions to the central, state and regional authorities;

28.5.2 Any portion of external funding allocated to support government operations (at all levels) must be included in the budget.

Part Three: Security Arrangements

29 rules relating to the authorization and mission of military forces in a democratic society.

29.1 The Parties agree that the rules governing the role, mission and mandate of any military force responsible for the defense of the Republic of the Sudan shall be the rules set out below, recognizing the fact that the Sudan People's Armed Forces and the Sudan People's Liberation Army (SPLA), which will be referred to from here on as the Sudan People's Liberation Armed Forces, will maintain their forces and internal command structure during the transitional period until the parties reach a different agreement.

29.2 Within the framework of a unified Sudan following the referendum of the people of South Sudan, the two parties agree to establish a defense force - a single defense structure, even if this is organized on a regional basis.

29.3 During the transitional phase, the mission of the two armed forces will be to provide defense and protection for Sudan, its borders and its people from external aggression.

No military force in Sudan shall have internal law or authorization except in extraordinary circumstances specified in the Constitution.

29.4 During the transitional phase, the two armed forces are subject to international law, especially with regard to the behavior of their members in any armed conflict.

29.5 During the transitional phase, the constitutionally permitted military forces must at all times be neutral, serve the people as a whole, be a support for civilian political authority, be subject to civilian supervision, and be financed by the national government. No military force other than that specified in the National Transitional Constitution is permitted.

30 Ceasefire:

30.1 The two parties agree to a comprehensive ceasefire that will take effect on an agreed upon date. The firing will be negotiated in a special session of these discussions, including possible agreements on the following:

30.1.1 Details and timetables for assembling, demobilizing or redeploying/withdrawing and determining the size of the necessary forces, locations and areas, including demilitarized zones and, if necessary or as agreed upon, the treatment of paramilitary forces, unified militias and other types of armed forces, in addition to the exchange of relevant information and demining activities, the formation of a joint defense council, military reinforcements, any reduction of forces and all related timetables, and determining the permitted and prohibited activities and the nature, extent and volume of recruitment and military training. The ongoing provision of weapons, the establishment and definition of the role and processes of recruitment, selection and training of national and state police units, the definition of the control organs, procedures and working conditions of these organs, and the nature and responsibility for disarmament, demobilization or reintegration, and the release of prisoners of war.

31 Command and control of the military forces in Sudan during the transitional period:

31.1 The Sudan People's Liberation Army, which will be called the Sudan People's Liberation Armed Forces, and the Sudan People's Armed Forces shall each maintain their own forces and internal command structures within the framework of the mandate and tasks stipulated in this Agreement, unless the parties agree otherwise.

31.2 The two parties agree to bear responsibility for controlling their paramilitary forces and militias loyal to them, and no force is permitted to operate outside the framework of the security arrangements agreed upon by the parties.

31.3 The Parties agree to bear responsibility for ensuring that such paramilitary forces and militias are consulted and involved in any action that leads to their inclusion within the framework of security arrangements reached in accordance with the ceasefire agreement.

31.4 Both the Sudan People's Armed Forces and the Sudan People's Armed Forces for the Liberation of the Sudan shall be subject to the supervision of the Joint Defense Council, which will be entrusted with the task of promoting the implementation of the terms of the peace and ceasefire agreement and any body that will be formed to ensure that decisions are taken only by mutual consent.

32 Taking into account what was stated in the above paragraph:

32.1.1 The Parties may establish joint and merging units for the purpose of performing or assuming specific national or symbolic functions.

32.1.2 Other security institutions of both Parties, including the National Police Forces, will be subject to appropriate integration and review as to their number and nature.

32.1.3 A National VIP Protection Unit shall be established, consisting of individuals from both armies and/or police services. The unit’s mission shall be to provide personal security services to national political leaders. 33 Joint Defense Council

33.1 A joint defense council shall be established consisting of the chiefs of staff and commanders (for example, chiefs of the various arms) of the two armies, the Minister of National Defense, and the minister responsible in the Government of Southern Sudan for the Sudan Armed Forces for the Liberation of the People of Sudan. The Council shall take its decisions by mutual consent and shall be chaired alternately by the Minister of Defense of both forces. 33.2 The functions of the Joint Defense Council are to:

33.2.1 Ensures that Sudan, its borders, its people, its airspace and its territorial waters are protected and defended. And he makes fun

Forces therefore, and more specifically, to control national borders.

33.2.2 Strengthening the ceasefire and the terms of this Agreement, including ensuring that all forces loyal to or

The militias have been placed under the control and discipline of one of the two forces.

33.2.3 Ensure that forces undertake only permitted activities, which may include assistance in repatriation

Reconstruction and development.

33.2.4 Supervising recruitment, training, armament standards, conditions of service, and salaries for members of the two forces.

33.2.4 Supervising and approving the establishment of merging units to perform specific functions as agreed upon. 33.2.6 Implement confidence-building measures and exchange processes to strengthen confidence between members of the two forces.

33.2.7 Supervising the redeployment of forces, disarmament, reduction of the number of forces and integration.

33.2.7 Announce a system of military discipline applicable to all members of the two forces.