Members of Parliament have said it’s very risky to give monopoly to Vitol Bahraini to supply fuel to Uganda following a heated debate at parliament on Tuesday.
While debating on the matter, Nathan Nandala Mafabi questioned how the government got into a deal with Vitol Company without allowing other companies to compete.
“The procurement with Vitol Company should have been competitive in order to allow other companies in the business to apply,” Nandala said.
The heated debate came after the parliamentary committee on Environment and Natural Resources chaired by Dr Emmanuel Otaala presented a report approving the Uganda National Company [UNOC] but also asked the government to procure fuel from multiple suppliers, not monopoly.
Nandala said that UNOC should be given all the funding required so that it can buy fuel from refineries, not Vitol which is also “middleman”.
According to the minority report on the same issue presented by Busiki Member of Parliament Paul Akamba, the government deal with Vitol is against government policy on a liberalized economy.
He also said it’s been the government’s failure to have fuel reserves and high taxes that increase retail fuel prices not having middlemen in the fuel supply chain.
Sheema Municipality MP, Dickson Kateshubwa said that the Government should capitalize UNOC but which should buy fuel from refineries not companies like Vitol which are also buying from other companies.
Kampala Central legislator Mohammad Nsereko compared the Vitol monopoly to the previous failed contracts such as the coffee deals with Pinetti and Lubowa Hospital.
“UNOC should be given a guarantee to regulate the circulation of fuel in the country. If we allow Vitol monopoly, we shall have knocked ourselves out like before on the matter of Umeme, Lubowa Hospital, Bujagali dam. How shall we explain to the people that we are the very same house that comes here and legislates after agreements have been entered into by the government without consulting the people and without involving the people of this country? I want to give the order that we are well informed about the status of UNOC and we must not be seen to come here under the back dress, the first of course of the government,” Nsereko said.
MPs condemn Vitol petroleum monopoly supply deal
