A/HRC/40/CRP.1 subsidiaries, and the Ministries of Petroleum and Mining, on its Entity List, which is a compilation of companies or actors whose activities are contravening US security or foreign policy. The stated basis for the US Department of Commerce’s decision to add these companies to the list was that they were “contributing to the ongoing crisis in South Sudan because they are a source of substantial revenue that, through public corruption, is used to fund the purchase of weapons and other material that undermine the peace, security, and stability of South Sudan rather than support the welfare of the South Sudanese people”.1018 In a similar move, and as noted above in Section IV(A)(3), in December 2018, the US Department of the Treasury’s Office of Foreign Assets Control sanctioned three individuals, including for their role in fuelling the conflict and the ensuing violence against civilians in South Sudan, noting that some of them had been paid “through the oil industry”.1019 One of the three individuals, is a former officer in the SPLA, who, in his capacity as Governor of Gogrial State, was allegedly implicated in ethnic violence leading to mass killings and displacement there in 2017.1020 This individual was also previously named publicly as both being involved in providing security for Palouch oil fields, and being active in a private company providing supplies and fuel to the SPLA. 1021 The Commission has furthermore received information that this individual may also have been involved in human rights violations in other parts of the country, particularly by providing and transporting weapons to SPLA troops.1022 As will be discussed below, South Sudan’s laws provide for strict provisions on accountability and transparency in the management of oil revenues, and the nonimplementation of these legal safeguards has contributed to a woefully inadequate level of corporate accountability in the country’s oil sector. f) Oil Production and Management: Legal Framework According to Article 172(1) of the Transitional Constitution (2011), “[o]wnership of petroleum and gas shall be vested in the people of South Sudan and shall be developed and managed by the National Government on behalf of and for the benefit of the people”. These guiding principles, which were already included to some degree in the 2005 Comprehensive Peace Agreement1023 are echoed in South Sudan’s law regulating the petroleum industry 1024, as well as in the 2015 ARCSS and the 2018 R-ARCSS.1025 These provisions highlight the basic principle that earnings from oil (and other natural resources) should be shared equitably and transparently among South Sudan’s people, and aim to prevent misappropriation and misuse of oil revenue, making much of the conduct seen in the previous section unlawful. Among the above-mentioned laws and agreements prescribing the principles of sharing the oil revenues equitably among the people and relevant communities of South Sudan, a key legal instrument is the Petroleum Revenue Management Act (2013). This Act, which has been commended as potential a ‘game changer’ in how South Sudan handles its oil revenues,1026 describes in further detail the requirements facilitating transparency, accountability and an equitable allocation of oil revenues among the present and future population of the country. The law includes the following important provisions: a. 1018 All oil revenues due to the Government of South Sudan must be paid into a single account, the Petroleum Revenue Account at the Bank of South Sudan.1027 Bureau of Industry and Security, US Department of Commerce, 15 South Sudanese Entities Added to the Entity List. US Department of the Treasury, Treasury sanctions Three Individuals for Their Roles in the Conflict in South Sudan, 14 December 2018. 1020 Confidential Meeting, Juba 15 January 2018; US Department of the Treasury, Treasury sanctions Three Individuals for Their Roles in the Conflict in South Sudan, 14 December 2018. 1021 US Department of the Treasury, Treasury sanctions Three Individuals for Their Roles in the Conflict in South Sudan, 14 December 2018; The Sentry, “War Crimes Shouldn’t Pay: Stopping the looting and destruction in South Sudan”, September 2016, pp. 22-26. 1022 Witness 607, ERN 101476-101482, para. 24 and ERN 101216-101222, para. 25. 1023 Article 3.1.1. 1024 Petroleum Act (2012), section 7. 1025 ARCSS, Chapter IV, Articles 1.5, 4.1.8 and 4.1.13.1; R-ARCSS: Chapter IV, Articles 4.1.5, 4.8.1.9 and 4.8.1.14.1. 1026 Emily Savage, “South Sudan’s Petroleum Revenue Management Act”, The Sudd Institute, Policy Brief, 12 December 2013, p. 1. 1027 Petroleum Revenue Management Act (2013), Chapter II, section 6. 1019 132

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