A section of civil society organisations (CSOs) in Uganda, have in the latest communique castigated members of parliament for failure to use their oversight powers to ensure compliance to oil revenue laws for the benefit of the citizens. The CSOs met days ago discuss government’s withdrawal of Shs200 billion from the Petroleum Fund in March 2019 without parliamentary approval to reportedly fund deficits in the 2018/2019 budget.
“This is against provisions of the Public Finance Management Act of 2015 which provides for how oil revenues are supposed to be spent. The main objective of the meeting therefore was to discuss and agree on how civil society organisations (CSOs) can work with relevant stakeholders to pressure government to refund the Shs200 billion that was withdrawn by government from the Petroleum Fund in March 2019 contrary to the law,” the activists said in a communique.
The CSOs led by Africa Institute for Energy Governance (AFIEGO) also want government to refund the oil funds amounting to Shs125.3 billion that government withdrew from the Petroleum Fund as shown in the Auditor General’s report of 2017/2018 contrary to sections 58 and 59 of the 2015 Public Finance Management Act (PFMA). Further, the CSOs want President Museveni and his government to implement the 2017 parliamentary recommendation that the Shs6 billion oil revenues that was illegally given to 42 government officials be refunded. The money was given to officials as a reward as government won a tax case against Tullow Oil a few years ago.
Other CSOs pushing government to refund the above monies include; National Association of Professional Environmentalists (NAPE), World Voices Uganda (WVU), Center for Constitutional Governance (CCG), Guild presidents Forum on Oil Governance (GPFOG), Green Organisation Africa, Girl Power Foundation, Kanungu Youth and Women Empowerment Group, Oil Refinery Residents Association (ORRA) and Kakindo Orhpans among others.
“During the meeting, participants noted that since 2011 when the Governor of Bank of Uganda (BOU), Emmanuel Mutebile, informed the public that the President had asked him to use national reserves amounting to $740 million to buy fighter jets and then refund that money with oil revenues, abuse of oil revenues has persisted,” the communique reads in part.
It further says the CSOs at the meeting observed that continued misuse of oil revenues is part of the big challenge of corruption in the country that will make it impossible for Uganda to exploit oil and guarantee conservation of critical biodiversity and citizens’ livelihoods. “Corruption will cripple environmental and governance institutions such as the National Environment Management Authority (NEMA), National Forestry Authority (NFA), Uganda Wildlife Authority (UWA), district land boards and others from doing their work due to lack of sufficient funding –as oil revenues and taxes are stolen- to conserve critical biodiversity, especially during this time when climate change challenges are at their worst,” it says.
The CSO leaders further noted that since 2008, government has earned oil revenues -over $1 billion- from signature bonuses and other oil revenue sources but government cannot account for most of this money. “This explains why citizens especially the oil host communities have continued to suffer numerous violations ranging from illegal displacements, poor compensation, lack of land titles and other human rights abuses at the hands of government. Institutions such as environment and other natural resources officers in oil districts lack basic resources such as equipment to test and monitor air quality, noise levels, implementation of license conditions and others.”
These are necessary to ensure that oil activities by companies such as Total E&P (U), CNOOC (U) Ltd and others comply with environment laws, licenses, ESIA conditions and others.
Participants observed that that the withdrawal of the Shs 200 billion and other funds from the Petroleum Fund without parliamentary approval is in violation of the Public Finance Management Act of 2015. They also noted that the absence of clear structures to ensure that oil revenues are used in line with Section 59(3) of the Public Finance Management Act 2015 –which provides that oil revenue will only be used for infrastructure and development purposes- clearly shows lack of government commitment to transparency. “It also shows that government has no respect for her own laws that require oil revenues to be used only for development purposes as opposed to consumption.”
The participants further expressed concern that the transfer of oil money from the petroleum fund for government to spend without parliamentary approval as required by section 58 of the Public Finance Management Act 2015 is in itself a sign of a government’s lack of commitment to transparency and willingness to account to her citizens.
They say in the communique that Uganda joining Extractive Industries Transparency Initiative (EITI) may not bring about transparency even though they noted it is a good gesture for the government to apply to join EITI as a sign of commitment to transparency in the collection and use of oil revenues.
The CSO leaders noted that without citizen pressure, joining EITI may not lead to transparency. “Like the many good laws that have failed to stop corruption, environmental abuses, human rights violations and other challenges in the country due to lack of compliance, EITI will also fail if citizens do not pressure government to comply to it,” participants said.
