Parliament recall over oil debate is timely

Sep 23, 2011

THE 164 members of Parliament who signed the petition to convene a special session of Parliament to discuss the oil agreements surpassed the one third (125 MPs) required by Article 95 of the Constitution.

By Moses Balyeku

THE 164 members of Parliament who signed the petition to convene a special session of Parliament to discuss the oil agreements surpassed the one third (125 MPs) required by Article 95 of the Constitution.

The primary objective of this petition sponsored by the Shadow Attorney General Abdul Katuntu and Theodore Ssekikubo is for the Government to disclose the oil-sharing agreements and explain the circumstances under which Heritage Oil dragged Uganda to a London court of arbitration over payment of the disputed $407m in capital gains tax.

This comes at the backdrop of the theory that countries with oil resource tend to have less economic growth and worse development outcomes.

However President Yower Museveni has dismissed the above claims.

I think the President’s confidence emanates from the way he has handled our oil since he came to power in 1986. In his early years of administration, Museveni allegedly withstood moves from two European oil giants who wanted to be given oil exploration rights over the whole of the Lake Albert. Aware that Uganda had no technical persons in that field then, to make a good bargain, he rejected the offers. In a bid to have local capacity, the Government sent Ugandans for training in oil exploration and management.

The Government has also resisted international pressure not to have its local oil refinery. In refining oil locally, valuable byproducts will be vital in the road construction and in electricity generation. This will significantly reduce on the economy’s cash outflows on oil importation.

However, responsible organs like Parliament and the energy ministry need to do extensive studies on how other oil producing countries that have successfully managed theirs. A case in point is Norway and Ghana. For Ghana, the government came up with two policy papers that provide a broad five-year road map for Ghana’s development into a modern industrialised economy.

To avoid excessive spending of the oil revenue, the extra revenue can be kept as reserves at the World Bank just like Norway does.


Writer is the MP, Jinja West Constituency

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