By William Sunday D. Tor
South Sudan is increasingly becoming a country of contradictions, where institutions established to serve the public often appear to operate with little regard for the rights and welfare of citizens. Among the most troubling examples is the conduct of some commercial banks operating in the country, whose practices raise serious questions about compliance with banking regulations, customer protection standards, and the effectiveness of financial sector oversight.
Last year, the Ministry of Finance and Economic Planning directed that public employees receive their salaries through commercial banks. The policy was presented as a measure to enhance transparency and accountability in public payroll management, particularly by identifying and eliminating ghost workers. While the objective was legitimate and widely supported, its implementation has produced unintended consequences that have placed significant burdens on ordinary civil servants.For many public employees, receiving salaries through commercial banks has not translated into greater convenience or financial security. Instead, it has become a source of frustration and hardship. Workers often find themselves unable to access their salaries in full, with some banks imposing withdrawal restrictions that effectively determine how much of their own money they may receive at a given time.
As a result, civil servants who rely on their monthly earnings to meet essential obligations such as rent, school fees, medical expenses, and family support are frequently left stranded.What is particularly disturbing is that many employees feel compelled to plead for access to money they have already earned. A salary is not a privilege granted by a bank; it is the lawful property of the employee. Yet the experience of many public servants suggests that control over their earnings has, in practice, shifted from the account holder to the financial institution.Another issue generating growing concern is the apparent reluctance of some commercial banks to facilitate routine interbank transfers.
Customers seeking to pay school fees or settle obligations through accounts held in other banks are often instructed to withdraw cash and make payments manually. Such practices undermine the very purpose of modern banking, which exists to provide secure, efficient, and convenient financial transactions.A particularly troubling example involves universities and other institutions that maintain accounts with Kenya Commercial Bank (KCB). Many customers have reported that some commercial banks operating in South Sudan refuse, delay, or fail to process transfers from accounts held in other banks to KCB accounts for the payment of tuition fees and other legitimate obligations.
Instead, customers are instructed to withdraw cash and physically deposit the money into the KCB account. This practice defeats the purpose of modern banking, increases transaction costs, exposes customers to security risks, and creates unnecessary inconvenience for students, parents, and public employees alike.In most banking systems around the world, electronic transfers between licensed banks are standard practice. They reduce risks associated with carrying large amounts of cash, improve efficiency, enhance transparency, and promote financial inclusion. When customers are forced to rely on cash transactions despite maintaining bank accounts, confidence in the banking sector inevitably suffers.
The Bank of South Sudan should investigate whether these restrictions on interbank transfers are technical, operational, or regulatory in nature and ensure that all licensed commercial banks comply with national payment system standards and banking regulations.Equally concerning is the apparent silence of the Bank of South Sudan (BoSS). As the country’s central bank and chief financial regulator, it bears responsibility for ensuring that commercial banks operate in accordance with established laws, regulations, and professional standards. The absence of visible regulatory intervention in response to persistent public complaints raises legitimate questions about oversight and accountability within the financial sector.
If public employees cannot freely access their salaries or conduct basic banking transactions, then the promise of financial inclusion remains unfulfilled. Banking reforms should empower citizens, not create new obstacles between workers and their earnings. A system that forces civil servants to queue endlessly, negotiate withdrawals, or carry large sums of cash simply to meet routine obligations cannot be described as efficient or customer-centered.The Bank of South Sudan must not remain a passive observer while some commercial banks effectively frustrate interbank transactions and deny customers the convenience and efficiency that banking services are meant to provide. Regulatory silence in the face of such practices risks eroding public confidence in both the banking sector and the institutions responsible for supervising it.
The Bank of South Sudan should urgently investigate complaints regarding salary withdrawals, interbank transfer restrictions, and other practices that may be inconsistent with banking regulations. Likewise, the Ministry of Finance and Economic Planning should review the practical impact of its salary payment policy to ensure that the intended benefits are not overshadowed by hardship for public servants.Ultimately, the credibility of any financial system depends on public trust. When citizens lose confidence that banks will safeguard and facilitate access to their money, the entire system is weakened. South Sudan’s civil servants deserve better. They deserve a banking sector that respects their rights, serves their needs, and operates under effective regulatory supervision.
Until then, many will continue to ask a troubling question: why must hardworking public employees beg for access to their own salaries?
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