Auditing Whats Involved?

NEWS
Fighting erupted in South Sudan's capital, Juba, in mid-December 2014 triggering clashes throughout much of the country. Several ceasefire agreements and ongoing negotiations have failed to bring an end to the conflict. Disagreements over many aspects of the July 2011 division of Sudan and South Sudan, notably border delineation, look set to continue, but the two countries will try to maintain general co-operation.  Sudan's real GDP is expected to grow by an average of 3.7% in 2015-19 (Source EIU).

Really JCB digger beats the 70mph barrier

Big Race Weekend

Watch Lewis Hamilton overtake Nico Rosberg at the start of the Abu Dhabi Grand Prix: http://t.co/YtWo4IAE8N pic.twitter.com/6WQIklAVlC
— BBC Sport (@BBCSport) November 23, 2014

Race Report: Lewis Hamilton wins the 2014 Drivers' Championship after victory in #AbuDhabiGP http://t.co/KO1QFDsby1 pic.twitter.com/qmr9GEv5CA

— IndySport (@IndySport) November 23, 2014

Lewis Hamilton wins the #AbuDhabiGP and the 2014 Drivers' Championship http://t.co/1dUpfw34VL pic.twitter.com/3P7NIXQCk3

— IndySport (@IndySport) November 23, 2014

Saudi Arabia - new Zakat regulations

Saudi Arabia – Shura Council approves new Zakat regulations In June 2014, the Saudi Shura Council approved draft regulations on the calculation and collection of Zakat on commercial and professional activities. Among other changes, the regulation imposes Zakat on immovable properties and real estate held for trading or leasing purposes, including vacant or developed land, regardless of whether such properties are owned by individuals or legal entities. This change aims to encourage traders holding properties for trading (i.e. speculation) to sell these properties, as they will have to pay the Zakat even if no sale occurs. The supply of land would then increase and the prices would be reduced. Other elements of Zakat base include, among other things: cash and bank deposits gold and silver stock of goods and raw materials investment in financial securities kept for trading receivables from others, if they resulted from cash lending or trading non-trading investments in sukuks (Islamic bonds) and debt securities. Fixed assets are not included in Zakat base. Zakat applies at the rate of 2.5 percent, and its taxable period is the Hijri (lunar) year. For Zakat payers wishing to adopt the Gregorian year, the rate is 2.577 percent. The Regulations are pending the approval of the Council of Ministers.

Middle East - Asia investment. China a key player

China to double Iranian investment http://t.co/jxs1eHfQRj

— BBC News (World) (@BBCWorld) November 16, 2014

FOCUS: Investment in Sudan

Sudan KPMG Country Profile

National Investment Encouragement Act 2013

http://images.mofcom.gov.cn/sd/201304/20130423150140234.pdf

Regarding the requirement for a local involvement 

Section 8 reads

Prohibition of Discrimination between Projects 

8- (1) For the purpose of this Act, no discrimination shall be made between the investors as being 

Sudanese, or non- Sudanese, or as being public, private sector, co-operative or joint sector. 

(2) No discrimination shall be made between similar projects in similar areas in respect of granting 

concessions and guarantees. 

Notes

1. The government eliminated the Ministry of Investment in December 2011 and replaced it with a High Council on Investment.

2.  Sudanese investment law states that “just compensation” must be offered in the case of nationalization or confiscation of all or part of any investment for “the public interest.” 

3.  Performance Requirements/Incentives

Investors must begin their projects within six months of receiving a license, submit reports every six months during the period in which the project receives special privileges, keep regular books and maintain records on the assets of the project exempted from customs duties, and exempted imported materials, and present, to the Minister, the Competent Minister and the State Minister, annually, during the period of validity of the privileges, a copy of the annual report of the project, approved by a certified auditor.

Sudanese investment law specifies certain sectors as strategic for the purpose of providing additional or special incentives: (1) infrastructure, including roads, ports, electricity, dams, communications, energy, transport, contracting business, education, health and tourist and information technology services and water projects; (2) natural resource extraction and exploitation; and (3) agriculture and industrial production.

Investments in strategic sectors are exempt from tax on profits for a period of ten years. The High Council on Investment may grant non-strategic investments an exemption of five years. The government may also extend benefits including free land and exemptions from other taxes and fees to strategic and non-strategic investments. Such projects may include, but are not limited to, investment in the least developed areas of the country; investments that assist in the development of export capabilities; investments that contribute to rural development; investments that increase employment; investments that are charitable in nature; and investments that develop scientific and technological research.

4.  Foreign Trade Zones/Free Ports

Sudan has established two free trade zones: Suakin on the Red Sea near Port Sudan and Aljaily near Khartoum. According to the Free Zones and Free Markets Law of 1994, industrial, commercial or service investments which are licensed in the free zones enjoy the following advantages:

-- Exemption of the projects from tax on profits for 15 years, renewable for an extra period dependant on the decision made by the concerned minister;

-- Salaries of expatriates working in projects within the free zones are exempted from personal income tax;

-- Products imported into the free zone or exported abroad are exempted from all customs fees and taxes except service fees and any other fee imposed by the board of the Sudan Free Zones Company;

-- Real estate inside the free zones area is exempted from all taxes and fees;

-- Invested capital and profits are transferable from Sudan to abroad through any bank licensed to operate in the free zone;

-- Money invested in the free zones may not be frozen or confiscated.

Source

http://www.state.gov/e/eb/rls/othr/ics/2012/191239.htm

FOCUS: The work of Crown Agents in Sudan and South Sudan

What we do in Economic Development

We help countries grow their economies, strengthen their health systems and improve financial management. We do this by providing consultancy and training in health systems strengthening, trade and growth, public private partnerships, public financial management and governance. We are one of the world's leading experts in public procurement and supply chain management and we provide financial services to facilitate development, focusing on international payments and cash management, trade finance and investment management for donors, NGOs and financial institutions.

find out more

SUDAN

Crown Agents has worked in Sudan for the past 40 years, assisting public bodies such as Sudan Railways, the Finance Ministry, and the Central Bank. We provide a full range of services, including supply chain services, public financial management, international banking and training. Our work has included arranging for the transportation of vehicles and equipment for use by African peacekeepers in Darfur and reforming the humanitarian system through the Sudan Common Humanitarian Fund.

SOUTH SUDAN

We have been supporting the government of the Republic of South Sudan to build a strong and effective state since the country’s independence on 9 July 2011.  In partnership with the new government, donors and other organisations, such as DFID and TradeMark East Africa, our public financial management, supply chain and consultancy expertise is supporting a number of projects.

Our customs administration reform and capacity building efforts have helped boost the post-conflict country’s revenue by 1,100 per cent.  We are also managing the Health Pooled Fund, which is the country’s largest health sector project, to ensure the delivery of essential health services to citizens and transfer ownership of the health system from NGOs to the government in six of the country’s ten states.

TRAINING

Public financial management systems are essential for the implementation of government policies and achievement of developmental objectives.
 

This course explores the fundamentals of governance reforms and the key issues and solutions across the PFM landscape including budget preparation and execution, accounting, monitoring and evaluation, performance measurement and auditing.

It also explains management theories and strategic planning frameworks essential to understanding the current issues and trends in integrated PFM reforms.

What the the DFID 2011-15 programs in South Sudan?