Fact-check: Yes, the Bank of South Sudan has ordered commercial banks to freeze accounts of Silicone Valley South Sudan Co. Limited

The directive by the Bank of South Sudan for commercial banks to block and freeze accounts of Silicone Valley South Sudan Co. Limited is true. The Bank of South Sudan confirmed that the viral letter is its official document.

By Ochaya Jackson

The Bank of South Sudan has directed the blocking and freezing of accounts for Silicone Valley South Sudan Co. Limited that claims it is affiliated to Silicone Valley Shares, in all the commercial banks in South Sudan.

The bank’s decision according to the document that went viral on social media, is that the Silicone Valley South Sudan Co. Limited is under investigation on compliance issues with the laws of South Sudan.

“The Bank of South Sudan (BOSS) top management would like to inform you that Silicon Valley Co. Ltd is still under investigation on issues related to compliance with all the relevant laws of South Sudan. Therefore, you are hereby directed to block and freeze the bank accounts of Silicon Valley Co. Ltd until further notice,” reads in part the document dated 23rd of September, 2022 signed by the bank’s director of supervision department, Deng Aru Bol and addressed to managing directors of all commercial banks in South Sudan.

The Bank of South Sudanconfirmed the authenticity of the document and said they are the official and authentic source  when contacted by 211 Check.

What do commercial banks say?

The Equity Bank of South Sudan said it has not yet received “the official instruction from the central bank”, but confirmed that it had “already blocked the account of Silicon Valley when the rumors” about their business came out.

Ecobank, where most of the company’s bank wire is done and Co-operative Bank South Sudan could not immediately respond to our inquiries.

What does 211 Check know about Silicone Valley South Sudan Co. Limited?

Silicone Valley Shares claims to be a venture capital firm with more than $6.4 billion in assets under management that invests early in founders building fast-growing technology companies.

The firm says it is a Limited Liability Company (LLC) headquartered in San Jose, California. Silicone Valley Shares also claims to have helped launch and commercialise 200-plus companies since 2010, including investments in DocuSign, Jet.com, Kiva Systems, LinkedIn, Rapid7, SurveyMonkey, Taleo, and TellApart.

It entered the South Sudan Market and registered at the registrar of companies in the ministry of Justice in December 2021 as “Silicone Valley South Sudan Co. Limited.” 

According to news reports by Eye Radio and the Sudans Post, hundreds of South Sudanese, including those who have invested thousands of dollars in the company, are worried about its legitimacy and legality in the United States, though the South Sudan Police Service says the company is legally registered with the government.

mGurush Partnership:

In this blog post on its website, Silicone Valley Shares states that its clients shall be accessing its services using MGurush, South Sudan’s pioneer mobile money platform that provides a fast, easy, safe and convenient way to send and receive money across the country.

However, in a tweet reply, mGurush said it was unaware of Silicone Valley Shares and that they were not in partnership.

Freezing of Silicone Valley Shares Bank Accounts:

On September 23, 2022, the Central Bank of South Sudandirected all commercial banks operating in the country to block and freeze all accounts of Silicone Valley South Sudan Co. Limited. 

211 Check is still undertaking indepth research into Silicone Valley Shares and will publish its findings at a later date.

Conclusion:

211 Check has found that the directive by the Bank of South Sudan for commercial banks to block and freeze accounts of Silicone Valley South Sudan Co. Limited is true. The Bank of South Sudan confirmed that the viral letter is its official document.