BEN-BELLA CONFIRMS DEFENSE CUTS
Former President Ibrahim ben-Bella has been moved from Environment and Tourism to the Finance Ministry. Ben-Bella confirmed that the government has shifted funds from various Ministries to the ones most likely to be impacted by likely disruption of the economy from tanking oil prices and a possible oil glut. Responding to questions on how that was going, he stated:
First, quite a few nations and industries will feel no impact or will benefit from cheaper oil and gas products. Among these will be tourism and transportation of all kinds. The danger for our investors is to put money into expansion which is dependent on oil prices remaining low. There is opportunity for some but investors and borrowers need to be cautious in that regard.
Second, three of the five nations with the largest oil and gas reserves have already cut oil production including Jumhuriat al-Badara; ours by 20% of planned production and 18% of current production. This should have some effect and may mitigate the decline. We really do hope to hear at some point what the other two are doing but are aware they have had other things on their mind.
Third, we are working through the Majatran Economic Association (MEA), which has among its members and associates a number of oil producers, to alleviate the effects of economic ills. The Northern Council Treaty Organization (NOCTO) has recently been reenergized and represents a number of oil producers and strong economies. Our thinking is NOCTO and MEA should be talking. Our expertise is in the impact of increasing and decreasing production on various elements of our economy and what increases are possible over time. Although we are coming out of isolation we lack the actual knowledge others have on countering price fluctuations. So we are ready dy to cooperate with others.
When asked about the changes in the budget, the Finance Minister said Health and Social Services, Infrastructure and Transport and Food and Agriculture were the Ministries that had received new funds; most of those increases were from shifts; and The Ministry of Defense was one of those that was budgeted less.
When asked about the cabinet changes, ben-Bella said:
I have been President and Chancellor and know there always lots of reasons for changes. Having talked with Sabriiqa Soqman I can say she and the Chancellor felt since she was the primary author of the current budget she should be the one making it work as Minister of Defense where the changes were likedly most difficult to make.