Showing posts with label Oil. Show all posts
Showing posts with label Oil. Show all posts

Monday, November 29, 2010

Women and youth will taste fruit of Uganda’s oil first

In this dexterous analysis which was published in Daily Monitor, November 22, Margaret Wokuri writes that sure enough as long as Dr. Kizza Besigye is in power, Ugandans will enjoy the fruits of the natural resources! 

The management of oil cannot be isolated from the wider framework of resource management i.e how natural resources can be effectively managed to translate into the welfare of the ordinary person. But again, this is also linked to the wider question of governance. More often, oil has been described as a curse to a particular place because dictators use the oil revenues to entrench themselves in power rather than look after the welfare of a country’s citizens.

In Africa for example, the majority of people in neighbouring DR Congo remain poor even when it is one of the mineral-rich countries. In Nigeria, oil has turned out as an environmental hazard. In worst-case scenarios, a resource like oil can be an attraction to foreign powers that often turn a country into a battle zone.

It is, therefore, important that while we address the question of oil resource and revenue management, the bigger question is how to ensure that there is the overall good governance framework in place. A corrupt regime where people who are culpable of graft are instead shielded by the system can never accord its citizens the proceeds of oil because all the revenues will be used to maintain the kleptocracy.

The IPC government has a comprehensive policy against corruption. Under the IPC government, corruption will be a risky venture because all implicated officials will be dealt with decisively. In addition, all watch dog organs shall be strengthened and facilitated to fight graft.

The IPC government shall respect the independence of the Civil Society by doing away with the restrictive laws that the current regime has pushed for. With strong institutions to check graft, IPC will then establish a transparent and equitable legal policy framework for the management of oil revenue in the country.

The current system has denied the public access to almost all information about oil agreements signed with foreign entities which is cause for suspicion. Moreover, the UK-based civil society group Global Witness, recently revealed that the first family was too close to Uganda’s oil. IPC will ensure that the oil resource is managed by Ugandans and for Ugandans.

In terms of allocation, priority will be given to those areas that have direct impact to disadvantaged groups like women and youth. Today, health is one such sector that needs serious consideration; only 40 per cent of the health care equipment is working, only 1/3 of the health facilities have basic equipment and supplies for conducting normal delivery while only a few health facilities have all the equipment for basic antenatal care.
The oil revenue shall be used to boost the health sector with special emphasis on antenatal care to reduce the 5,760 women who die every year because of child-birth related complications.

Secondly, many women are engaged in small scale business, most of them have been defrauded by money lending institutions that charge high interest rates. IPC will therefore use the oil revenue to set up soft loan schemes that are affordable to the many struggling mothers all over the country.

The other important aspect about oil is that it is a resource that must be shared by the existing and future generations. IPC believes in sustainable resource management. The oil revenue will be used for extensive research in environmental protection, support of afforestation and protection of affected communities from hazards that come with oil exploration. IPC will also save some of the oil revenue by setting up a national Oil Fund separate from the Consolidated Fund for posterity.

Ms Margaret Wokuri, director for communication and publicity at the IPC campaign bureau wrote this article in consultation with her organisation’s leadership

Friday, November 26, 2010

Besigye: Bunyoro will get oil money

As as the campaign trail gets hotter, the voters have their ears flapped to capture how each of the presidential candidates will handle oil after winning the election. In this Daily Monitor article, Francis Mugerwa and Gerald Bareebe write that IPC flag bearer Dr. Kizza Besigye has promised Bunyoro a share of the oil revenues.


Masindi/Kampala
Dr Kizza Besigye yesterday promised oil-rich Bunyoro region a share of revenues from the resource if elected president. Dr Besigye, the IPC opposition coalition candidate, told a rally at Masindi’s Boma Grounds that Bunyoro, one of the poorest regions of the country, would directly benefit from oil sales.

The proposal is a policy departure from the ruling NRM party, which considers the oil as a national resource and offers no affirmative action for Bunyoro. NRM officials said the IPC proposal was untenable.

Divide and rule?
Attributing local ethnic tensions between indigenous Banyoro and immigrant populations (loosely referred to as Bafuruki) to State machinations, Dr Besigye warned the people against what he called President Museveni’s “divide and rule policy”.

“The NRM government is dividing you so as to steal the newly-discovered oil without your attention … you might be aware that the oil blocks were recently sold at a cost of over $1.5 billion,” Dr Besigye said. “The FDC government will manage the oil resources transparently and efficiently. Bunyoro will have its due share of oil revenues.” But the spokesperson of President Museveni’s campaign, Mr Ofwono Opondo, yesterday said Dr Besigye’s ideas were not viable.

“Revenue collected by this government has been used very well though we have had some hitches here and there,” Mr Opondo said. “Let Dr Besigye give us a formula of how he will distribute oil proceeds. What if other regions like Kasese and Kanungu that produce copper and wolfram also demand their share? What will he do?”

Dr Besigye observed that as tribal unrest simmered, a company that was contracted to explore for oil sold its concession to another company for $1.5 billion after spending about $300 million. This company made a profit of $1.2b without the people of Bunyoro asking questions because, according to him, they were busy fighting each other with each seeking favour with Mr Museveni. However, President Museveni’s spokesman, Tamale Mirundi, accused the opposition politician of playing dirty.

“Dr Besigye is trying to incite the public against the President. The Banyoro will benefit just like other tribes in Uganda and they will not be given any special status because oil is Uganda’s asset though found in Bunyoro,” he said yesterday.

Dr Besigye’s comments follow last week’s report released by Global Witness, an international organisation that investigates the role of natural resources in funding conflict and corruption worldwide.

Voiced concern
The organisation voiced concern over the role of the army Special Forces Group, commanded by First Son Lt. Col. Muhoozi Kainerugaba, and Saracen, a private security firm owned by the President’s brother, Gen. Salim Saleh, in guarding the country’s oil wells in the Albertine area.

Although Dr Besigye did not say what percentage of oil proceeds his government would devote to Bunyoro, he insisted that under the current administration it is likely that oil revenue will be used to entrench President Museveni and “the corrupt NRM system”. It is up to the people of Bunyoro, the IPC candidate said, to save the country from the looming ‘oil curse’ by voting out President Museveni.

In Bujenje County, Dr Besigye said one of his first assignments as Head of State will be to tarmac the Masindi-Hoima-Fort Portal road and to set up affirmative action for Bunyoro and Busoga sub-regions.