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Petroleum Authority,Total E&P and CNOOC dragged to court over flouting local procurement rules

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A Kampala advocate Andrew Oluka has dragged Petroleum Authority of Uganda, Total E&P and CNOOC to court over disregarding the local procurement laws in regard to the East Africa Crude Oil Pipeline (EACOP), Tilenga Upstream Project  and the Kingfisher Development Area Project.

Advocate Oluka in his affidavit that was filed on June 24 at the High Court Commercial Section, wants court to take declare the previous and ongoing procurement process illegal and are being done in contravention of articles 2, 26, 40 and 244 of the constitution and all enabling laws providing for national content in the petroleum sector.

“An order directing the respondents to conduct a legal audit of all the petroleum procurement activities in the (1)above to ensure compliance with the national content provisions of the law. An order of injunction restraining the respondents from continuing to conduct any further procurements in the petroleum sector which do not comply with the national content provisions of the law” reads the affidavit.

The applicant further prays that a declaration be made that all business income derived from procurement under the projects in (1) above is taxable in Uganda. He argues that he aggrieved that the respondents are engaged in procurement under the EACOP, the Tilenga Upstream Project and the Kingfisher Development Area Project  which procurement processes are giving preference or priority to foreign companies/ entities over Ugandan owned companies in contravention of the law.

“The impugned procurements if allowed to continue, shall occasion loss of public revenue and property unless restrained. The application raises matters of broad public concern that affect all citizens of Uganda and it is a legal matter that requires addressing pro bono publico” it further reads.

Oluka is represented by Counsel Fred Muwema of Muwema and Co. Advocates and court has set September 1, 2021 as the hearing date for the case.

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