Pervasive corruption in Uganda’s mining sector allows crooked officials and the investors they partner with to profit at the expense of the country’s economy, people and environment, a London-based Global Witness reveals in a report.
An 18-month investigation shows it is almost impossible to do business in the mining sector without paying bribes or drawing on high-level political connections.
‘Uganda: Undermined’ exposes how well connected individuals including those with close ties to President Museveni appear to trade political influence for financial gain. From low-level officials to senior political figures, many of those involved in the sector are ready to bend or break the rules. Fixers and middlemen run a parallel economy which sits outside the system, selling off mining rights all over Uganda in deals facilitated by mining department staff. Serious investors are driven away, while some of those left are the last people who should be involved in the mining industry.
The report singled out Directorate of Geological Survey and Mines (DGSM) that is responsible for awarding licenses to companies that powerful individuals are compromising it thus threatening its independence and credibility.
“…rather than fulfilling its mandate to work for the benefit of the Ugandan people, the DGSM is controlled by a hidden alternative power structure and decision making process or ‘shadow system’ which benefits predatory investors and politically powerful Ugandans,” the report reads in a part.
The report named particular individuals who benefited from nepotism and connections both to Directorate of Geological Survey and Mines and the first family.
Richard Kaijuka, a former Minister of Energy and childhood friend of President Museveni owns gold exploration licenses across Uganda and they stretch to the border of Uganda and Congo through African Gold Refinery (AGR) Company, which he co-owns with a Belgian investor.
Kaijuka, also the vice chairperson of the Chambers of mines and Petroleum, was also found to be friends with Salim Saleh, the president’s brother and Barnabas Taremwa who is a brother-in-law to Saleh.
The report states that in one of many examples of legal but exploitative tax avoidance, African Gold Refinery (AGR), whose employees have close links to the president, declared exports of gold worth over US$200 million but paid only half a million dollars in tax. A former employee with connections to the President of Uganda revealed how he helped arrange the tax exemptions for the company, which is processing gold from across the region, including South Sudan and DRC. The company has failed to disclose the origin of the gold or provide evidence of supply chain due diligence, raising concerns that this gold could be fuelling conflict and human rights abuses.
“Uganda is at a crossroads: managed properly, its mineral wealth could create jobs and generate much needed revenues. But if this level of corruption and mismanagement is allowed to persist, only political elites and the corrupt will profit. Meanwhile Ugandans continue to lose land and livelihoods, reputable companies hold back investment and the environment suffers,” said George Boden, Campaign Leader, Global Witnesses.
Other areas of concerns include; Miners, including children, work in dangerous and largely unregulated conditions and are exposed to toxic substances like mercury every day. Poorly dug mine shafts collapse regularly, causing death and serious injury.
Also, mining rights are routinely granted to people or companies with no qualification to exploit them. For example, African Panther Resources gained control of a tin mining concession in South Western Uganda while owned and directed by two twenty-somethings from London with no apparent experience of mining. They were awarded an exploration licence for the site in just three days, a turnaround which one Department of Geological Survey and Mines (DGSM) employee described to Global Witness as “impossible.” The company was only in their hands for seven months. Before and after that period the company was controlled by Christopher Eibl, CEO of the major international Swiss commodities investor Tiberius Asset Management, and his business partners. The changes in ownership appear to be a clear attempt to hide their identity during the period in which the company received its licence.
Section 43 (3) (a) of the mining act stipulates that “no mining lease shall be granted to an applicant unless he or she satisfies the Commissioner that, “the area of land over which the lease is sought is not in excess of the area reasonably required to carry out the applicant’s programme of the proposed operations.”
“The absence of respect for the rule of law and the systematic circumvention of policies and procedures undermines investment,” reads the report titled ‘Uganda: Undermined’ https://www.globalwitness.org/en/campaigns/oil-gas-and-mining/uganda-undermined/
On the other hand, the report also observed “since the early 2010s, Uganda has also experienced its own domestic gold rush, concentrated around Mubende, Mayuge, Namayingo, Bugiri and Karamoja with tens of thousands of Ugandans flocking to mostly unlicensed, artisanal mines in search of a living.”
Potential lucrative Venture
Between 2009 and 2015, Uganda’s annual gold exports stood at $40M, according to Bank of Uganda statistics. But the figure swelled to whopping $340M by 2016, which offers hope for the speedy growth of the mining sector.
Innovative Finance from Canada projects positive impact on local communities.
In this video Witness Radio Uganda and GRAIN express pessimism on why development finance from Canada may not be different from other financiers.
Witness Radio Uganda’s Team Leader Jeff Wokulira Ssebagala and GRAIN’s researcher Devlin Kuyek share views on the adverse effects of harmful financing and developments world Wide in an interview with the Co-founder of the Blended Finance Critique Susan Spronk, a Canadian based coalition of civil society organizations, unions and academics that condemns the operations of Blended Finance in Canadian Aid.
According to the Organization for Economic Co-operation and Development (OECD), Blended finance is the strategic use of development finance for the mobilization of additional finance towards sustainable development in developing countries. The Canadian government is widely promoting blended financing as a form of privatization to meet the United Nations’ 2030 Sustainable Development Goals (SDGs).
But civil societies such as Susan’s urge it (blended finance) undermines Canada’s ability to meet its commitments to the established goals of Official Development Assistance (ODA), namely poverty reduction, a central focus of the SDGs.
Signs of harmful projects with financing from development institutions are spotted in Uganda…
By Witness Radio Team.
The growth of a country is discerned by great leaders and innovators who see opportunities out of darkness and transform their areas from nothing to success. Those are great leaders whose interest is to see the developments in their countries and the well-being of their citizens.
Every single day, countries all over the world receive investors that acquire loans, grants, and donations to implement mega projects that are seemingly expected to develop host countries. countries and investors borrowing the money Often, countries and investors portray how these projects improve the livelihood of the browbeaten, au contraire, they have left many broken families, poor-dirty homesteads, and shattered dreams.
Uganda is one of those countries, whose citizens have paid a price for reckless or unsupervised and profit-led international investment. In a bid to implement its industrial policy, the country has welcomed both foreign and local investors with interests in the fields of extraction, industrial agriculture, carbon credit tree plantation, mining, infrastructural projects, and many others.
It has received billions of dollars from different financiers including commercial banks, Pension Funds, and International Development Finance Banks or institutions, among others. For instance, the World Bank has invested more than 20 Billion Dollars since 1963 and currently
Every project comes with its own chilling story. More often their stories are unheard by the World. Witness Radio – Uganda surveyed some projects in Uganda. This study revealed agony, illegal evictions, abject poverty, environmental degradation, and loss of life among others, as some of the consequences suffered by the would-be beneficiaries of these international funded projects across the country.
In the capital of Uganda, Kampala, over 1750 families were forcefully evicted from a city suburb, Naguru, for Naguru- Nakawa housing estates. 11 years down the road the project that was highly hyped is to take off on the grabbed land. Pleas from the victims of the eviction to regain their land have all fallen on deaf ears.
About 80km away from Kampala is the island district of Kalangala surrounded by the World’s second-largest lake, Victoria, and known for palm growing. When the palm-oil project was introduced to residents they were given the impression that it would improve their livelihoods and create job opportunities. Instead, it has dumped thousands into poverty after their land was grabbed by BIDCO, a Wilmer international-funded project. People lost land and now work on plantations as casual laborers. The neighboring communities are accusing BIDCO workers of sexual and gender-based violence.
In the South-Western District of Kiryandongo, multinational companies including Agilis Partners Limited, Kiryandongo Sugar Limited, and Great Seasons SMC Limited with funding from The United States Agency for International Development (USAID), The Department for International Development (DFID) of the United Kingdom, and Common Fund for Commodities among other financiers are forcefully evicting more than 35,000 people. The eviction has been on since 2017.
Workers that worked on a World Bank Project in Soroti, in the far east of the country, are accused of sexually harassing minors. Several young girls were defiled and left pregnant. Despite the government being aware of this none of the pedophiles have been brought to book, the World Bank-funded project in the Eastern Town of Soroti left several underage girls defiled and impregnated.
In late 2020, residents of Kawaala zone II woke up to the hail of armed men and graders evicting and destroying their properties to implement a multimillion-dollar project funded by the World Bank. The project is being implemented by the Kampala Capital city Authority (KCCA) on behalf of the government of Uganda.
The above-listed and other projects, on the other hand, continue to perpetuate violence and judicial harassment against leaders of Project Affected Persons (PAPs) and community land and environmental rights defenders because of their work that resists illegal evictions and destruction of the environment among others.
Although project implementers such as government entities accuse local communities of occupying land targeted for projects illegally, in most cases victim communities have rights over these pieces of land because their settlement on the same land can be traced to have happened generations ago.
No matter how people are negatively impacted being by these harmful projects, financiers continue to release more money to the government and investors. The banks aim at profit margins other than the livelihoods of the people. In Bulebi village, Mbazi parish, Mpunge Sub County in Mukono district, Akon’s futuristic city is about to lead to the eviction of over 1000 residents whose entire lives have been built on their land.
In April last year, American rapper Aliaune Damala Badara well known for his stage name AKON visited Uganda in search of land for constructing the city. On the same business trip, he met President Museveni Yoweri Kaguta and expressed his interest in building a futuristic city with its currency. The president ordered the Ministry of Lands, housing, and urban development to look out for free land for his city.
However, on 7th Jan 2022, the Uganda Land Commission showed the Minister for Lands, Housing, and Urban Development “Hon Judith Nabakooba” land that was proposed for the Akon city. According to the Uganda land commission, the land is Freehold Volume 53 Folio 9 measuring I square mile.
This has sparked outrage amongst the affected as they were never consulted or consented to allow the project in their community. According to community members that Witness Radio interviewed, they said they heard the distressing news of Akon city through the Media.
The community said no official from the ministry has ever approached them about their land giveaway. “Our country is full of land evictions and evictors begin in that way. There has been no official coming on the ground to officially inform us about the project and neither have we heard any official communication of compensation.” Obori said.
Residing in the attractive village surrounded by freshwaters, the community asserts this has been the source of livelihood and advised the government to get alternative land for the City.
Controversies surrounding the land giveaway and ownership of the area still exist. A section of residents have protested and vowed not to surrender their land for the City. They claim to have acquired freehold titles from the Mukono lands board.
Breaking: over 350,000 acres of land were grabbed during Witness Radio – Uganda’s seven months ban.
By Witness Radio Team.
As the onslaught on civil society heightens, its space continues to shrink which has bearing on the services they render to the communities. Witness Radio, was among the 54 organizations suspended by Uganda’s National Bureau for Nongovernmental Organizations on August 20th, 2021. The actions are amongst the recent forms of attack on civil societies in Uganda. Other numerous attacks include arrests of rights activists, harassment, tortures, and office- break-ins at night by security operatives who move away with valuables.
The effects of this suspension were felt by communities facing land grabs across the country. For seven months while the organization was suspended, over 300,000 people were evicted from their land and couldn’t access specialized and prompt legal assistance.
Witness Radio Uganda, globally known for its campaign against community land-grabs couldn’t assist these victims of land grab since it risked facing further sanctions from the Bureau in case it intervened. However, last week, there was some relief, when Uganda’s National Bureau for NGOs lifted suspension and certified its operation.
According to Mrs. Bulyerali Joan, the Head Legal at Witness Radio – Uganda, the organization conducted a review of the evictions that happened during the suspension. With information and assistance from some lawyers, local journalists, and community land and environmental rights defenders across the country, the evictions watchdog was able to document cases of hundreds of thousands of Ugandans that were either forcefully evicted or received threats of evictions while in its limbo.
The ban imposed on Witness Radio coupled with the disruptive impacts of COVID- 19 resulted in the surge of eviction cases, especially in areas where the organization had a presence. Throughout the ban, without access to swift and prompt legal support, the communities resorted to sharing with the world their ordeal.
She further noted that the evictions were conducted in disregard of the law on evictions. “I was shocked to see powerful people and companies take advantage of our suspension to escalate the evictions of vulnerable communities that received our assistance. The evictions did not comply with the land eviction practice directives. None of them was preceded by legal court orders.” She noted.
According to the Land Eviction directives, issued by the former Chief Justice of Uganda, Bart Katureebe, evictions shall be preceded by valid court order, properly identifying the persons taking part in the eviction, and upon presentation of formal authorizations. The police and local authority of the area shall be notified and shall be present to witness the evictions, among others.
Based on the data gathered by the team, various communities across the country were left dispossessed by land grabbers without any form of assistance. Others have received threatening messages with intentions of dispossessing them off their land.
During the period under review, over 300,000 people across the country are believed to have been threatened with evictions, while 350,000 acres of land were either grabbed or on verge of being grabbed.
“However much, we gathered this information, we expect the cases to be higher because some evictions go unreported either due to the remoteness of the areas or other related factors.” One of the collaborators observed.
The evictions were extremely violent. They were characterized by kidnaps, arrests and detentions, torture that often-caused unexpected grief to the communities.
Among the most affected districts include Kyankwanzi, Mubende, Kassanda, Hoima, Buikwe, Wakiso, Kikuube, and Bulambuli districts.
In some of the mentioned districts, the Lands, Housing, and Urban Development Minister toured and halted the evictions but the evictors continued unabated.
Mr. Kimazi Experito, a journalist based in Mubende, attributed the rise of evictions to the organization’s suspension which denied the evictions-affected communities access to specialized legal assistance.
He said Witness Radio has offered support to over 20 land-grab-affected communities in Mubende with legal support. “Witness radio is a game-changer that brought back lives of evicted communities to normal,” he lauded.
“Mubende is one of the fastest-growing areas because of gold and other minerals as well as factors related to fertile soils. Currently, it is one of the hotspots of evictions. Opportunists used this chance to grab land from people with full attention. Without the defenders, it’s often hard for people to get justice since local people are not much informed about land laws.” Kimazi explained.
Engineered by powerful people in public offices, multinational companies, and politicians using state machinery including the army and national police, forced evictions to continue to affect food sovereignty and threaten the role of indigenous communities to protect the environment.
During the same period, President Yoweri Museveni stopped any eviction without the approval of the Resident District Commissioners. However, legal experts warned that the move is to usurp the powers of the Judiciary. In a statement signed by Pheona Nabasa Wall, the Uganda Law Society President noted that the directive undermined the role and independence of courts in handling eviction matters.
That notwithstanding, “Occasionally, the residents are not given any opportunity to negotiate with the landlords. Even when the government obliges to pay landowners, neither does the government nor the evictor compensate for the damaged property. During evictions, properties that were made for their life end up being destroyed in seconds which causes lifetime misery.” Paul Kasoozi, a community land rights defender stated.
With different tactics aimed at alienating the poor from their land, it has been established that the police and the army continued to play a huge role in the largest forms of violent evictions through torture, arbitrary arrests, and detention and instilling fear and pressurizing the local communities to vacate their land on orders of the evictors.
Many of those community members who oppose land evictions end up being kidnapped, tortured, or arrested and detained to silence the community. It takes support from an organization defending communities’ land rights to intervene for such communities to get justice.
Days before the lifting of the suspension imposed on Witness Radio, communities neighboring the Katta Barracks in Bulambuli district, were violently evicted by the Uganda People’s Defense Forces under the alleged command of Lieutenant Colonel Mukiibi Julius without offering alternative resettlement.
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