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AG okays disclosure of oil agreements amidst international pressure

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The Attorney General, Kiryowa Kiwanuka, has given the Ugandan government a green light to disclose the international oil contracts to the public.

This comes after the oil companies said they have no objections to publicising the oil contracts. Kiwanuka’s advice is likely to be welcomed by civil society and Ugandan citizens who have long called for transparency in the oil and mining sectors. Kiwanuka, in a letter dated July 2, 2024, advised the minister of Finance, Matia Kasaija that he was at liberty to disclose the production sharing agreements (PSAs) if he deemed it appropriate.

In a letter dated July 2, 2024, Kiwanuka advised Finance minister Matia Kasaija that he may disclose the production sharing agreements (PSAs) if he deems it appropriate. This guidance was in response to a letter from Kasaija dated June 1, 2024. However, Kiwanuka’s advice specifically pertains only to contracts with TotalEnergies Uganda and CNOOC Uganda Limited. He cited letters from these companies, dated July 18, 2021, and November 29, 2021, respectively, which confirmed their consent to the disclosure of their PSAs to fulfil the requirements of the Extractive Industries Transparency Initiative (EITI) standard 2.4.

“Therefore, we advise that should you deem it appropriate you are at liberty to disclose the PSAs as prescribed by the EITI standard requirement,” reads the letter copied to the minister of Energy and Mineral Development, state minister for Minerals, deputy attorney general.

The letter was also copied to the permanent secretary/secretary to the treasury, ministry of Finance, permanent secretary ministry of Energy, solicitor general and deputy solicitor general. A member of the civil society who had seen the letter however said it was silent concerning the contracts signed with other companies involved in oil exploration in the Albertine area.

Some of those include DGR Energy Turaco Uganda SMC Limited which is a unit of Australia’s DGR Global and state-owned Uganda National Oil Company (UNOC) and Nigeria’s Oranto. From Kiwanuka’s advice, it appears that the contracts signed with UNOC and mining contracts will remain a secret.

Uganda has been a member of the EITI since August 2020, committing to contract transparency by publicly disclosing the full text of agreements governing the exploitation of oil, gas, and mineral resources. By joining the EITI, Uganda aimed to enhance transparency, strengthen tax collection, promote public debate, improve the investment climate, and create lasting value from its petroleum and mineral resources.

This week, EITI executive director Mark Robinson visited Uganda to assess the country’s progress in ensuring transparency in the oil, gas, and minerals sectors. Robinson was accompanied by Suneeta Kaimal, president and CEO of the Natural Resource Governance Institute (NRGI), which has been instrumental in building the capacity of Ugandan civil society, media, parliamentarians, and government ministries on natural resource governance.

EITI executive director Nark Robinson
EITI executive director Nark Robinson

NRGI has supported capacity building of Ugandan civil society, media, parliamentarians, and ministries on natural resources governance, especially in accountability and governance. Robinson and Kaimal on Thursday met the minister of Finance, Matia Kasaijja, and his officers and discussed the progress in ensuring public disclosure of contracts under the extractive sector.

He also met officers from the Attorney General’s office and the key industry players like TotalEnergies and members of the civil society under multi-stakeholder groups (MSGs) hosted at the Uganda EITI secretariat under the ministry of Finance.  Robinson told journalists that his team found it so striking that all the stakeholders in Uganda were committed to the EITI process.

”The EITI seemed to have curved out open space in Uganda for genuine, free, and open debate on these complex issues around the extractive industry,” he said.

RObison’s visit to Uganda follows the validation report on Uganda whose results were released in May 2024. The EITI board said Uganda had achieved a moderate score in implementing the 2019 EITI Standard at 78.5 points. The overall score reflects an average of the three component scores on stakeholder engagement, transparency, and outcomes and impact. On the transparency component, Uganda achieved a fairly low score of 67.5 points. Robinson while meeting the minister raised some of these issues.

“We identified some of the improvements that could be made. He was very receptive. For example, how can contracts further be made open to the public? So there is a process to move towards that goal,” he said.

He confirmed that they discussed making public the audited accounts of Uganda National Oil Company (UNOC).

“He was very receptive to that idea. So I was very struck by their receptivity and recognition from the government to respond positively to some of the recommendations,” added Robinson.

Sources who attended the meeting with the minister said he asked his visitors about what Uganda would gain from its participation with EITI. Robinson said the minister’s question was good because it reconfirmed why Uganda signed up to the EITI. The EITI board had reported that there had been little progress on full disclosures of contracts in the oil sector despite Uganda EITI’s (UGEITI) efforts.

The EITI board also noted that beneficial ownership data was not available though there had been reforms put to create a national beneficial ownership registry. Robinson seemed to have had information to the effect that TotalEnergies and CNOOC Uganda had written no objection letters to the disclosure of the PSAs signed with the government of Uganda.

“Uganda has to demonstrate real progress on making the contracts public. That needs to happen not just those two but across the sector,” he said.

Robinson emphasized the need for Uganda to demonstrate real progress in making contracts public across the entire sector, not just with TotalEnergies and CNOOC. He also called for the creation of a public registry of beneficial owners in the oil, gas, and mining sectors and the reconciliation of discrepancies in gold production data.

“The fourth one is to reconcile some of the discrepancies in the mining data, especially gold production,” added Robison.

Asked why they were insistent on gold data, he said, “It is so important in many countries. And it is one of your major minerals in Uganda that has significant and considerable revenue. That is why gold matters so much than other sectors of the mining,” he said.

Gold, one of Uganda’s major minerals, has been a focal point due to its significant revenue potential. A recent UN report highlighted Uganda, Rwanda, and Burundi as key transit routes for gold smuggled from the eastern Democratic Republic of Congo to Dubai. In Uganda, discrepancies have been noted between gold production figures reported by the Bank of Uganda and those declared by Uganda Revenue Authority (URA) customs.

David Sserwadda, a senior mining inspector, and a member of the Uganda EITI Multisector Group said there is an effort to ensure that different agencies of the government don’t regulate gold exports. He revealed that there had been a meeting with the customs department on how to align gold export in the sense that when it is not cleared, the customs should not allow the export. Uganda has to close some of those before the next EITI board validation commencing on July 1, 2026.

Source: The Observer

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New report: EACOP threatens tourism and biodiversity in Greater Masaka.

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By Witness Radio team.

A new report urgently warns about the imminent threats posed by the East African Crude Oil Pipeline (EACOP) to the tourism sites of the Greater Masaka subregion, demanding immediate attention and action.

In a recently released research brief by the Inclusive Green Economy Network-East Africa (IGEN-EA), “Tourism Potential of Greater Masaka vis-à-vis EACOP Project Risks,” IGEN-EA reveals the area’s diverse tourism prospects. These prospects bring massive wealth to the country as a result of its rich biodiversity and tourist attractions, but they are at risk of destruction by the EACOP project.

The EACOP project involves the construction of a 1,444km heated pipeline from Hoima in Uganda to Tanga in Tanzania, which will transport crude oil from Tilenga and Kingfisher fields. The project has been widely criticized for its environmental and social concerns. The pipeline has displaced at least 13,000 people in Uganda and Tanzania.

Experts say the Masaka subregion has sustainable tourism potential. However, the EACOP could negatively impact it by further fueling the climate crisis, causing biodiversity loss, and driving a population influx, among other things.

The Inclusive Green Economy Network-East Africa (IGEN-EA) is a network that unites over thirty-six (36) private sector players and civil society organizations (CSOs) from Uganda, Kenya, and Tanzania. The organizations undertake research, raise stakeholder awareness, and advocate to promote green economic alternatives, including clean energy, sustainable tourism, organic agriculture and fisheries, forestry, and natural resources management.

Located in southern Uganda and bordering Tanzania, Greater Masaka comprises nine districts: Kalungu, Masaka, Rakai, Sembabule, Lwengo, Kalangala, Lyantonde, Bukomansimbi, and Kyotera. Four of these, Kyotera, Rakai, Sembabule, and Lwengo, are crossed by the eacop mega project, which transports crude oil from Hoima to Port Tanga of Tanzania.

The research study’s findings reveal that the 1,443km EACOP is set to affect River Kibale/Bukora in Kyotera and Rakai districts. The river is one of the most important in the Sango Bay-Musambwa Island-Kagera (SAMUKA) Ramsar Wetland System, renowned for hosting 65 mammal species and 417 bird species. Further, the EACOP is set to affect River Katonga, the water body on whose banks Bigo by Mugenyi, a UNESCO World Heritage site, is located.

According to the Uganda Bureau of Statistics Report 2024, tourism contributed approximately 4.7% to Uganda’s GDP, and the sector has experienced significant recovery and growth. However, destroying essential tourism sites poses substantial risks to the industry.

The report underscores that the construction, operation, and decommissioning of the EACOP could lead to the irrevocable loss of the biodiversity mentioned above. This grave concern could significantly diminish Greater Masaka’s tourism potential.

“The proposed construction method of the EACOP, the open cut method, as well as the planned monitoring of the EACOP, including at river crossings, every five years and using the pigging method, instead of cathodic protection for corrosion control purposes, puts rivers and Ramsar sites at risk of oil pollution among other impacts. This could cause biodiversity loss and affect scenic views, negatively impacting tourism potential”. The report further reads.

Research report also estimates that the full value chain carbon emissions of the EACOP, which includes emissions from all stages of the pipeline’s life cycle, including extraction, transportation, and refining, are projected at over 379 million metric tonnes over 25 years.

“Carbon emissions are a driver of climate change, which has been implicated in contributing to biodiversity loss, including in Uganda. The climate risks of the EACOP thereby present a risk to eco- and agro-tourism in the Greater Masaka sub-region.” The research adds.

However, the report further implored the Ministry of Tourism, Wildlife, and Antiquities, through the Uganda Tourism Board (UTB), to prioritize the development of highlighted sites and promote cultural tourism in the subregion.

According to Mr. Dickens Kamugisha of the Africa Institute for Energy Governance (AFIEGO), the government claims that projects like EACOP are aimed at addressing poverty are unrealistic.

He noted that such projects have instead triggered biodiversity concerns, contributed to climate change, and posed significant social risks, such as increased crime rates and disruption of local communities. He emphasized that investing in sustainable economic activities such as tourism would benefit the government and private sector more.

Mr. Paul Lubega Muwonge, a member of IGEN-EA, emphasizes the crucial role of research in tourism product development and its value in laying a strong foundation for all operations.

“Research is an important and desired step in tourism product development; it sets a stronger foundation in all operations. We hope that the Ugandan government and development partners will use this research to harness the benefits of tourism by launching tourist activities in the Greater Masaka sub-region, Masaka.” He said.

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World Bank announces multimillion-dollar redress fund after killings and abuse claims at Tanzanian project

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A pastoralist indicates the border of Ruaha national park after the expansion. People allege they have faced violent evictions, disappearances and had cattle seized. Photograph: Michael Goima/The Guardian

Communities in Ruaha national park reject response to alleged assault and evictions of herders during tourism scheme funded by the bank.

The World Bank is embarking on a multimillion-dollar programme in response to alleged human rights abuses against Tanzanian herders during a flagship tourism project it funded for seven years.

Allegations made by pastoralist communities living in and around Ruaha national park include violent evictions, sexual assaults, killings, forced disappearances and large-scale cattle seizures from herders committed by rangers working for the Tanzanian national park authority (Tanapa).

The pastoralists say most of the incidents took place after the bank approved $150m (£116m) for the Resilient Natural Resource Management for Tourism and Growth (Regrow) project September in 2017, aimed at developing tourism in four protected areas in southern Tanzania in a bid to take pressure off heavily touristed northern areas such as Ngorongoro and the Serengeti.

In 2023, two individuals wrote to the bank accusing some Tanapa employees of “extreme cruelty” during cattle seizures and having engaged in “extrajudicial killings” and the “disappearance” of community members.

The Oakland Institute, a US-based thinktank that is advising the communities, and which alerted the World Bank to abuses in April 2023, says Ruaha doubled in size from 1m to more than 2m hectares (2.5m to 5m acres) during the project’s lifetime – a claim the bank denies. It says the expansion took place a decade earlier. Oakland claims 84,000 people from at least 28 villages were affected by the expansion plan.

This week, the bank published a 70-page report following its own investigation, which found “critical failures in the planning and supervision of this project and that these have resulted in serious harm”. The report, published on 2 April, notes that “the project should have recognised that enhancing Tanapa’s capacity to manage the park could potentially increase the likelihood of conflict with communities trying to access the park.”

Anna Bjerde, World Bank managing director of operations, said, “We regret that the Regrow project preparation and supervision did not sufficiently account for project risks, resulting in inadequate mitigation measures to address adverse impacts. This oversight led to the bank overlooking critical information during implementation.”

The report includes recommendations aimed at redressing harms done and details a $2.8m project that will support alternative livelihoods for communities inside and around the park. It will also help fund a Tanzanian NGO that provides legal advice to victims of crime who want to pursue justice through the courts.

A second, much bigger project, understood to be worth $110, will fund alternative livelihoods across the entire country, including Ruaha.

The total investment, thought to be the largest amount the bank has ever allocated to addressing breaches of its policies, is a reflection of the serious nature of the allegations.

A metal sign saying Ruaha national park
The project aimed to increase management of Ruaha national park and develop it as a tourist asset. Photograph: Michael Goima/The Guardian

The bank had already suspended Regrow funding in April 2024 after its own investigation found the Tanzanian government had violated the bank’s resettlement policy and failed to create a system to report violent incidents or claim redress. The project was cancelled altogether in November 2024. A spokesperson said the bank “remains deeply concerned about the serious nature of the reports of incidents of violence and continues to focus on the wellbeing of affected communities”.

By the time the project was suspended the bank had already disbursed $125m of the $150m allocated to Regrow.

The Oakland Institute estimates that economic damages for farmers and pastoralists affected by livelihood restrictions, run into tens of millions of dollars.

Anuradha Mittal, executive director of the Oakland Institute, said the “scathing” investigation “confirmed the bank’s grave wrongdoing which devastated the lives of communities. Pastoralists and farms who refused to be silenced amid widespread government repression, are now vindicated.”

She added that the bank’s response was “beyond shameful”.

“Suggesting that tens of thousands of people forced out of their land can survive with ‘alternative livelihoods’ such as clean cooking and microfinance is a slap in the face of the victims.”

Inspection panel chair Ibrahim Pam said critical lessons from the Regrow case will be applied to all conservation projects that require resettlement and restrict access to parks, especially those implemented by a law enforcement agency.

A herd of elephants crosses and dirt road next to a 4X4
A proportion of the new World Bank funding will go to support communities within Ruaha national park. Photograph: Tristram Kenton/The Guardian

Regrow was given the go ahead in 2017. The Oakland Institute described its cancellation by the government in 2024 as a landmark victory, but said communities “remain under siege – still facing evictions, crippling livelihood restrictions and human rights abuses”.

In one village near the southern border of Ruaha, the brother of a young man who was killed three years ago while herding cattle in an area adjacent to the park, said: “It feels like it was yesterday. He had a wife, a family. Now the wife has to look after the child by herself.” He did not want to give his name for fear of reprisal.

Another community member whose husband was allegedly killed by Tanapa staff said: “I feel bad whenever I remember what happened to my husband. We used to talk often. We were friends. I was pregnant with his child when he died. He never saw his daughter. Now I just live in fear of these [Tanapa-employed] people.”

A herd of cows grazing on dried grass
Cows grazing on harvested rice paddy fields in Ruaha national park, central Tanzania. Photograph: Michael Goima/The Guardian

The Oakland Institute said the affected communities reject the bank’s recommendations, and have delivered a list of demands that includes “reverting park boundaries to the 1998 borders they accepted, reparations for livelihood restrictions, the resumption of suspended basic services, and justice for victims of ranger abuse and violence.

“Villagers are determined to continue the struggle for their rights to land and life until the bank finally takes responsibility and remedies the harms it caused.”

The bank has said it has no authority to pay compensation directly.

Wildlife-based tourism is a major component of Tanzania’s economy, contributing more than one quarter of the country’s foreign exchange earnings in 2019. The bank has said any future community resettlement will be the government’s decision.

Source: The Guardian

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Palm Oil project investor in Landgrab: Witness Radio petitions Buganda Land Board to save its tenants from being forcefully displaced palm oil plantation.

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By Witness Radio team.

Witness Radio has petitioned the Buganda Land Board (BLB) to investigate and address concerns regarding forced land evictions of Kabaka’s subjects and tenants of BLB, whose land is targeted for oil palm expansion in Buvuma district.

Several families in Majjo and Bukula villages in the Nairambi sub-county are currently facing imminent threats of eviction from their land. This urgent situation is compounded by the criminalization of community activists, environmentalists, and land rights defenders by an alliance of Buvuma College School, Kirigye Local Forest Reserve, some officials of Buvuma district local government, and agents of Oil Palm Uganda Limited (OPUL).

In the petition to the Chief Executive Officer of the Board, local communities of Majjo and Bukula villages in Nairambi Sub-county claim that their legal occupancy on Kabaka’s land is targeted and threatened to give way for palm oil growing. Victim families state that between 2015 and 2018, they (residents) registered their Bibanja interests on Mailo land with the Buganda Land Board, which is their landlord and have since been paying Busuulu (annual ground rent) as recognized by the Land Act Cap 236.

The Buganda Land Board (BLB) is a crucial professional body set up by His Majesty the Kabaka of Buganda. Its primary role is to manage land and property returned under the Restitution of Assets and Properties Act of 1993, making it a key player in the resolution of land rights issues.

Witness Radio findings reveal that evictors have captured and used criminal justice system state organs such as police, prosecutors ‘offices, courts, and elected leaders to threaten and target their land and violate/ abuse their land rights, claiming that the families are illegally occupying the land in question. The community’s land is being cleared for palm oil expansion, and portions of it already have palm oil trees planted on it.

The violent evictions in Majjo and Bukula villages began in 2020. Since then, an alliance of district officials, led by Mr. Adrian Ddungu, together with Buvuma College School, OPUL, and Kirigye Forest Reserve, have been accused of orchestrating acts of violence and intimidation aimed at forcefully displacing lawful occupants.

As a common tactic used by many landgrabbers, the criminalization of community land defenders and activists is being applied against those resisting the forced land eviction schemes in Buvuma. They have been constantly arrested and charged with multiple criminal offenses.

“Part of their land has unlawfully been taken and planted with palm oil trees. They also continue to face multiple criminal charges. It is important to note that these charges are unfounded and unjust. Many of them currently face charges of criminal trespass, assault occasioning actual bodily harm, and carrying out prohibited activities in the forest reserve.” The petition dated 7th March read, highlighting the injustice of the situation.

Witness Radio has called upon the Buganda Land Board, a key institution with the power to address these land rights concerns, to urgently intervene and stop further evictions in Buvuma.

 

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