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organisations (CSOs) can work with relevant stakeholders to pressure government to refund the Shs200 billion that was withdrawn by government from the Petroleum Fund in March 2019 contrary to the law,” the activists said in a communique.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.

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The construction of Kabaale International Airport in Hoima is now 21 per cent complete, according to SBC Uganda, the contractor in charge who said that work done so far includes earthworks for a runway which involved digging up and compaction of soil up to 27 meters from the ground to ensure an absolutely firm foundation.

SBC Uganda Limited – a joint venture company between United Kingdom’s Colas Limited and a subsidiary of Israel’s Shikun and Binui namely SBI International Holdings of Uganda – were in April 2018 given the mandate to undertake the construction woks of the project.

The work includes paving a 3.5 kilometers (11,000 ft.) of runways, carrying out of earthwork and drainage activities, pouring of cement and asphalt, building of electro-mechanical systems, building communications and navigation systems, construction of an air traffic control tower, a cargo terminal, additional residencies and service structures.

The project also involves construction of a multi-purpose terminal building for cargo and passengers, a control tower, an airfield ground lighting system, a fire station, car parking lot, access roads, taxiway, perimeter fence and electrical center, among other facilities.

1st and 2nd phases

Speaking after a tour at the site, Civil Aviation Authority’s manager for public affairs Vianney Luggya said that the first phase of construction which includes the runway and cargo-handling facilities, is expected to be ready by next year. This phase is above all made to support the construction of the oil refinery due to the runway’s capability to handle big and heavy aircrafts.

“In 2022, the second phase of construction shall be delivered. This phase emphasizes on the facilitation of passengers. It shall therefore boost tourism and business especially in the agricultural sector,” said Luggya.

Upon completion, the US $294m project partly funded by the United Kingdom Export Finance (UKEF) and Standard Chartered, will also have an Aircraft Parking Apron on a 81,500 square meters space with the capacity to park four large body aircrafts and a possibility of further expansion in future. Generally, Kabaale will be the second international airport in Uganda after Entebbe.

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The Uganda Communications Commission (UCC) has clarified on the ongoing SIM card validation exercise by Telecom operators as below:

1. A customer who registered using their NIN and Name – there is no action required. You will not be affected by the upcoming deactivation. Note, no action is required.

2. A customer with more than one number of a particular network and has carried out biometric verification on any of these numbers (MSISDN) on the same network dating between May 2018 to date, No further action is required.

3. A customer who used another person’s Name and NIN, please go to the nearest service centre with your valid National ID and register afresh.

4. If a customer used their name but another person’s NIN to register, please go to the nearest service centre with your valid National ID and register afresh.

5. If your Mobile Money is registered under a different name from your SIM registration, please go to the nearest service centre with your valid National ID and edit your details.

6. When you dial *197# and follow the prompts and find that there are numbers registered under your NIN that are not yours, please remove them immediately.

7. If you registered your child’s phone number under their name but using your NIN (the Parent), the name should also have been the parents as well. Therefore please visit the nearest service centre and edit the details as they appear on the National ID’s holder.

8. If you lost your National ID, NIRA issues confirmation letters attesting to your citizenship and that your registration information exists in the NIRA database. The NIRA letter can be presented to your telecom operator to secure a SIM replacement within 72hrs, given that your name and NIN were previously captured correctly by the operator.

9. SIM card purchased, upgraded, Swapped and or replaced between May 2018 to date will not be affected by the 1st May 2019 deactivation.

10. If and when your SIM card is deactivated, you have the opportunity to reactivate the same by presenting a valid National ID for a fresh SIM Card registration.

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Music artists Alexander Bagonza commonly known by his stage name, A Pass has said that he is excited and waiting to be picked up by police over social media and mobile money tax protests he participated in last year.

“My views about the social media tax and the protest against it have never changed one eye order, I stand with Bobi Wine and many other Ugandans on this and I personally don’t think he is in prison because of that particular protest, am waiting to be picked up”

This financial year, government introduced social media and mobile money tax. With Social media platforms such as WhatsApp, Twitter, Facebook, You Tube, Viber and Skype among others have been subjected to a daily levy of Shs200 as mobile money transaction have been subjected to a 0.5 per cent excise duty.

The tax sparked up protests from a cross section of Ugandans among whom were Kyadondo East MP, Robert Kyagulanyi aka Bobi Wine and other activists like journalists Joel Ssenyonyi, Raymond Mujuni, A Pass and others calling for trashing of the law.

Yesterday Mr. Kyagulanyi, was picked at Kalerwe market on his way to Kibuli Police Criminal Investigation Department (CID) where he was summoned over allegations of breaching of police guidelines and traffic rules.

He was produced before Buganda Road Court Magistrate, Esther Nahirya and charged with disobedience of statutory duty contrary to section 116 of the Penal Code Act, committed in July 2018 and subsequently remanded to Luzira Maximum Prison.

Their counterpart Joel Ssenyonyi, said the only ‘crime’ Bobi Wine committed was to stand up against unfair taxation AND injustice.

“Many of us were happy to commit that ‘crime’ with him! As young people in various professions and fields of life, our resolve against injustice and bad governance in our country is stronger than ever.” Ssenyonyi said .

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The Minister of Energy and Mineral Development, Irene Muloni, has said Uganda will launch the second licensing round of oil exploration following the first phase that saw Tullow Oil, Total E&P Uganda and China National Offshore Oil Corporation (CNOOC) licenced, though Tullow Oil is to exit.

Minister Muloni said the second licensing round will be launched during East African Petroleum Conference and Exhibition (EAPCE) to take place at the Pride Inn Paradise Beach Resort, Convention Center and Spa in Mombasa on May 8, 2019 in Mombasa, Kenya.

The Conference will delve into four main themes: Exploration and Development, Commercialization and Infrastructure Development, Economic and Financial Aspects of Petroleum Projects.

Uganda’s proven oil reserves were estimated by the Ugandan Petroleum Exploration and Production Department to be 3.5 billion barrels, which are expected to yield at least US$2 billion per year for 30 years once oil production commences.

EAPCE is also aimed at promoting investment in the oil and gas sector by demonstrating to the world the potential that lies within the region and sharing information on the status of development of the sector in each Partner State.

She said given the importance of energy in realizing this vision, the EAC Partner States have agreed to cooperate in joint exploration and development of energy resources found within the Community and to promote investment within the sector. The EAC Partner States seek to promote exploitation of both renewable and non-renewable energy sources in the most optimal way for the mutual benefit of East Africans.

“I want to invite the international and regional community to take off time to come and see what we have as the regional block, how to build synergies and come together and see how we can maximize opportunities that we have in oil sector in the east African community,” Muloni said.

The minister said the second round will be launched for companies interested in taking part in Uganda’s oil industry.

The East African Community (EAC) has been holding the East African Petroleum Conference and Exhibition biennially since 2003 to promote exploration, development and production of oil and gas. The main objective of the Conference and Exhibition is

The Conference offers a wide range of technical presentations reflecting developments in the oil and gas industry in East Africa and around the world. The Conference provides a forum for discussing the legal and policy framework and the overall business environment prevailing in the region.

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