The Petroleum Fund located in the Bank of Uganda has received a deposit of US$63m (sh212b) from the business activities of oil companies.
The Public Finance Management Act 2015 establishes a Petroleum Fund into which all petroleum revenues of government will be paid.
Lawrence Kiiza, director economic affairs, ministry of finance said the oil revenues would improve on public finances. Kiiza said this during a regional extractives transparency conference organised by Action Aid and Global Rights Alert. The conference took place in Kampala.
Kiiza said the funds accrued from day to business activities of oil companies such as Value Added Tax, income taxes and signature bonuses. He said an additional US$244m (sh821b) was expected to be injected into the fund.
He explained that Uganda has borrowed from the models of Norway and Chile in creating the fund. He added that Uganda has learnt from the bad mistakes made by some countries in managing its oil and gas revenues and would try to avoid such mistakes.
He called for a strong oversight role by Parliament, civil society and media in distribution of the oil revenues. He said greater accountability was required in the sector more so at a time when crude oil prices were fluctuating.
On governance of the sector, he said government subscribes to views of Extractive Index Transparency Initiative (EITI) and was putting in place rules and safety nets required by EITI. He said government was following the EITI requirements as it prepares to join it.