(29 April 2019) Less than two months after banning the hoarding
of cash, recently ousted Omar al Bashir
is being accused of money laundering after large sums of cash tallying to
approximately 7 billion Euros, 350,000 US dollars and 5 billion Sudanese pounds
were recovered from the Presidential Palace in Khartoum. According to a
reliable source, Sudanese security agents seized the money while carrying out a
search in the deposed president’s home on 19 April 2019. 315 Saudi riyals
deposited in a bank account owned by an employee of the presidential palace was
also seized. Pictures circulated by the media shows large sums of money, in US
dollars, British pounds and Sudanese pounds packed in sucks.
In February 2019, al Bashir issued an order
banning the hoarding of the cash and “speculation” on the currency. The decree
prohibited individuals from storing or carrying more than 1 million Sudanese
pounds and/or 3000 US dollars outside the banking system. Entities were banned
from storing more than 5 million Sudanese pounds and storing amounts that are
not commensurate with the scale of their activity.
Punishment for violation of the decree, in
addition to punishments in any other breached laws, is imprisonment for a
period between six to ten years, as well as a fine. A peaceful protester was
sentenced to six years in prison and a
fine for violating this decree in the same month it was announced.
Al Bashir passed this decree after several
anti-government protests broke out across Sudan
since 19 December 2018, triggered by a severe increase in prices of
fuel, bread and other basic commodities resulting from emergency austerity
measures and sharp currency devaluation imposed by the government in an attempt
to save the collapse of its struggling economy. Protesters initially denounced
the rising cost of living but later started calling for resignation of al
Bashir. Reliable information has linked the money found at al Bashir’s home to
those used by his regime to “motivate” militias and masked individuals who violently cracked down on peaceful protests.
On 20 April 2019, the Senior Public Prosecutor,
Mr Mutasim Mahmoud confirmed the seizure of large sums of money at al Bashir’s
residence and stated that the prosecution office will commence investigations
against al Bashir for money laundering. According to Mr Mahmoud, the money has
been safely deposited in the treasury of the Bank of Sudan.
ACJPS has also received reliable information
indicating that investigators, including an officer from the Sudan Armed Forces
have completed recording statements of security agents who carried out the
search and seized the money. Subsequent investigations will be carried out from
Kober prison in Khartoum where the deposed president is currently being held
since 16 April 2019.
The Sudanese legal framework for the offence of
money laundering is set out in the Anti Money Laundering and the Financing of
Terrorism Act 2010. The 2010 Act criminalizes money laundering and prescribes a
penalty of imprisonment, for a term, not exceeding ten years, and fine, not
exceeding double the money subject of the offence.
ACJPS expresses concern over the competence and
independence of domestic courts to try al Bashir. Although Article 123 (2) of
the 2005 Interim Constitution guarantees their independence, in practice
domestic courts have largely been subservient to the former President or the
security forces, particularly in cases of crimes against the state. Moreover,
the Constitution remains suspended since 11 April 2019.
Jurisdictional independence and competence in
Sudan is also hindered by other legislation, for example, Article 58 of the
Criminal Procedures Act 1991 grants the Minister of Justice the right to
interfere in judicial proceedings and to stay or dismiss any criminal
proceedings “and his decision shall be final and shall not be contested….”.
This Article violates the Basic Principles on the Independence of the Judiciary
and will most likely provide opportunity for al Bashir’s allies within the
judiciary, law enforcement and government to interfere in his trial.
ACJPS is also deeply concerned about lack of
accountability for gross violations of human rights committed during al
Bashir’s regime. In 2009 and 2010, the
International Criminal Court (ICC) issued arrest warrants against al-Bashir for
crimes against humanity, war crimes and genocide in Darfur. Bashir has managed
to avoid arrest since 2009 despite the ICC’s arrest warrants which oblige all
states parties to arrest him upon arrival within their territory. The
transitional military council has stated that it will not extradite al Bashir
to the International Criminal Court(ICC).
We urge authorities to conduct broader
investigations that includes gross human rights violations committed during al
Bashir’s regime.
ACJPS calls on Sudan to;
Immediately investigate allegations of grave
human rights abuse in Sudan, including extra-judicial killings and torture that
have taken place in the context of the current protests.
Repeal all laws granting immunity and hold
perpetrators to account in competent and independent courts of law.
Undertake a comprehensive reform of laws that
restrict the enjoyment of human rights by Sudanese citizens.
Restore and uphold the Sudanese Interim
Constitution of 2005.
Background
Since 2017, there has been a continuous
deterioration in the economic situation in Sudan leading to the decline in
value of the Sudanese Pound. The exchange rate for the US Dollar to the
Sudanese pound had risen to 60 Sudanese Pounds, resulting in increased costs of
living and the prices of basic commodities. There has also been scarcity of
hard cash in the banks, making it difficult for citizens to withdraw necessary
amounts needed to meet the costs of purchasing the necessary commodities.
In June 2017, the US Government lifted the
economic sanctions against Sudan. At the time, the market value of the US
Dollar to the Sudanese Pound was 15 Pounds. Three days after the lifting of the
sanctions, the value of the Sudanese pound rose to 17 Pounds. By September
2018, the Pound had gone beyond 40 Pounds.
In September 2018, the Sudanese Central Bank
introduced two new currency notes for 100 and 500 Sudanese pounds but this did
not result increase of money in circulation. Numerous private factories and
business involved in either food production or other basic commodities closed
down without prior notice. This resulted in a shortage of supply of basic
commodities as well as unemployment of former employees. Several facilities,
service centres and companies preferred to transact in cash and started to reject
bank cheques including medical facilities.
The lack of cash flow led to public distrust in
the banking system that has preferred to keep cash out of the banks or transact
on the black market. On the market, the exchange rate of the US Dollar to the
Sudanese Pound was 6 Sudanese Pounds if transacting with cash and 8 Sudanese
pounds if transacting by bank cheque.
In November 2018, the Sudanese Judiciary issued
a decree restricting the selling of land and cars to be conducted via cheque
instead of cash. Such a declaration is against the law and indicated an
economic policy intended to force people to engage with the struggling banking
system. This policy left many investors and businessmen wondering about the
fate of their money.
By 19 December 2018, the market value of
Sudanese pounds had risen to 80, worsening the already sharp increase in prices
and shortages of basic commodities and fuel. This triggered mass peaceful
protests across Sudan that led to the ousting and arrest of al Bashir on 11
April 2019 by the Sudanese army and establishment of a transitional military
council which has been mandated to oversee a transitional period of two years.
Currently, the market value of Sudanese pound is 16.
Peaceful protesters have called authorities to
hold al Bashir and all members of his administration to account for the
corruption that worsened the economic crisis during Bashir’s last years in
power. ACJPS has been informed by a reliable source that transitional military
council has ordered the central bank of Sudan to review all financial transfers
since April 1 and to seize “suspect” funds.