The Sentry identified other risk indicators in its examination of the Kiir family network.
Unclear business practices
Every company must describe the nature of their business in their articles of incorporation, according to the 2012 Companies Act.[211] The Sentry found that numerous companies incorporated by members of the Kiir family provided extensive lists of activities, making it challenging to discern the actual nature of their business—and nearly impossible for a company to have experience across such a vast list of industries. Unclear business practices can challenge the assessment of typical and expected business activities—a usual standard to evaluate for irregular and suspicious activity indicative of money laundering.[177]
Public procurement red flags
Several companies that included Kiir family members in their lists of shareholders received public contracts or letters of credit, which are essentially guarantees from a bank to a seller that they’ll be paid by the buyer. The Sentry, in examining these companies, identified a number of red flags for trade-based money laundering.[178] Some companies were incorporated shortly before receiving the contract or letter of credit and therefore could not demonstrate a successful track record to adequately justify that the company had the experience to successfully deliver on the contract. In several cases, contracted companies lacked trade records that would indicate the required activities had been completed, even though they had already been paid.[166]
Minors as shareholders
The children and grandchildren of Kiir and his brother-in-law, Gregory Vasili, served as founding shareholders for a number of companies when they were still minors. This raises questions as to whether these Kiir family members had the experience necessary to meaningful contribute to the businesses. Listing children as company shareholders is a common tactic used by corrupt political elites to circumvent government anti-corruption measures and enhanced due diligence requirements by financial institutions that are aimed at identifying corrupt activity.[206]
Foreign ownership
Foreigners can own businesses in South Sudan, but the 2012 Companies Act mandates that South Sudanese nationals hold at least 31% of the shares.[211] While these requirements can support local South Sudanese economic interests, they can also create an advantage for companies with connections to the political elite. The Sentry identified 70 companies with foreign shareholders in which members of the Kiir family also held shares.
