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WITNESS RADIO MILESTONES

Tullow free to exit after concluding tax talks

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By NJIRAINI MUCHIR & HALIMA ABDALLAH

Kampala. British Oil firm Tullow is set to formally exit active operations in Uganda, after agreeing to a payment plan for taxes on its farm-down to Total E&P.
The company agreed to pay $167m in capital gains tax to Uganda Revenue Authority (URA), clearing a hurdle that government had erected for consent to its exit plans.

The development follows close to two years of haggling over the tax.
Initially, URA assessed the tax at $300m over all of Tullow’s assets valued at $900m, but the oil firm said that the transaction wasn’t taxable.

Since then, there have been negotiations over the amount, which finally came down to $167m.
Last month Tullow Oil and Total E&P chief executives and President Museveni met in Entebbe where outstanding issues on the disputed tax were resolved.

Although the tax matter was in respect of Tullow, Total took a hand in order to help reach a conclusion.
Sources familiar with the matter said Total agreed to meet part of the tax without giving a breakdown.
“Tullow has agreed on the principles of the capital gains tax on its $900m farm-down to CNOOC [China National Offshore Oil Company] and Total. The government and partners are now engaged in discussions to finalise an agreement reflecting this tax treatment that will enable the completion of the farm-down,” notes published along Tullow’s 2018 full-year results, read in part.
On January 1, 2017, Tullow announced it had signed a sale purchase agreement with Total E&P to transfer 21.57 per cent of its 33.33 per cent stake in the joint venture partnership, which includes CNOOC. Tullow will now own a stake of 11.7 per cent.
In March 2017, Tullow experienced the first hurdle in the bid to sell its shares to Total when CNOOC exercised its pre-emption rights and demanded half of the shares that were traded to Total after the parties had concluded agreements. The process was restarted to accommodate CNOOC’s demands.

That was the easy part. The difficult part was how CNOOC and Total would operate blocks formerly under Tullow. That discussion was lengthy and was only resolved after government mediated between the two.
In the meantime, Tullow applied for a private ruling to understand whether the proposed transaction was taxable.
URA responded in the affirmative and went on to assess the taxes, which resulted in a disputed amount.
“The Tullow farm-down has been resolved; so it is no longer an issue,” said Mr Peter Muliisa Uganda National Oil Company legal officer.

Uganda has 6.5 billion barrels of oil, with between 1.4 billion and 1.7 billion recoverable in the 40 per cent explored areas of Albertine Graben.
When the farm-down is finally over, Tullow anticipates to receive a cash payment of $100m.
Another $108 million has been deferred for the pre-completion period. A further $50 million of cash consideration will be received upon the final investment decision.
Tullow will reinvest the remaining money in the upstream operations and the East African Crude Oil Pipeline as its share contribution.

Tullow planned to sell a greater stake in Uganda so as to free financial resources to enable it to continue with its operations in Kenya.
This development implies that Tullow will spend a small fraction of its planned $570 million African investment this year in Uganda.

In Kenya
In Kenya, Tullow plans to reach a final investment decision on the South Lokichar basin by the end of 2019, with a projected production for 2022. This, however, will require several key milestones stones, including land acquisition, commercial frameworks and contract wards. An exploration appraisal confirmed that the South Lokichar basin contains 240 million to 560 million barrels of oil, with 1,230 million barrels recoverable.

-Daily Monitor

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WITNESS RADIO MILESTONES

Land grabbers evict 360,000 Ugandans in 2024

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A staggering 363,021 Ugandans were displaced due to forced land evictions between January and June 2024, according to a new report by Witness Radio Uganda.

The report documented 90 cases of land evictions during this period, with nearly four incidents occurring weekly, affecting over 15,126 people and threatening 5,060 hectares of land nationwide.

The Central region was the epicenter, recording 52 eviction cases, followed by 24 in the Western region, eight in the Northern region, and six in the Eastern region. Alarmingly, the report estimated that 2,160 Ugandans face eviction daily, with 723 hectares of land at risk of being grabbed every day.

VIOLENCE AND HUMAN RIGHTS VIOLATIONS

Despite government promises and directives from President Museveni to halt evictions, land grabbers have routinely ignored these orders, often resorting to violence. Armed security forces, private militias, and police were reported to have carried out the majority of the evictions.

Of the reported cases, 37 were enforced by armed gangs on behalf of evictors, 25 involved Uganda Police, five were carried out with the participation of UPDF soldiers, and four were linked to private security companies.

“The egregious levels of impunity exhibited by land grabbers have left communities defenseless, creating an environment where their human rights are trampled without consequence,” said Jeff Wokulira Ssebaggala, country director of Witness Radio Uganda.

He called for accountability and justice, warning that the unchecked power of influential individuals and entities leaves marginalized communities vulnerable and without recourse.

DRIVERS OF EVICTIONS: INDUSTRIALIZATION AND LAND-BASED INVESTMENTS

The report identified the government’s push for industrialization and land-based investments as the primary drivers of forced evictions. Land is increasingly targeted for oil and gas extraction, mining, agribusiness and tree plantations for carbon offsets. While some of this land is already under development, other parcels remain vacant but are guarded by military personnel and private security firms.

Ssebaggala emphasized that industrialization must balance economic development with the protection of smallholder farmers’ rights to land and food security.

TRAGIC STORIES

The report highlighted harrowing cases that underscore the human toll of forced evictions. In Nakasongola, smallholder farmer Dan Ssebyala was ambushed and killed by armed men following a confrontation over disputed land. The district has become a hotspot for violent evictions involving absentee landlords and powerful investors.

Ismael Bwowe, a disabled father of 20, recounted how his land was confiscated after he demanded fair compensation. He faced intimidation, arrests and false charges from state authorities, including being accused of robbing an influential individual. Bwowe claimed that Total Energies offered legal support and representation on the condition that he accept their compensation terms.

“I refused,” he said, adding that the pressure to relinquish his land remains intense. The report underscores the urgent need for reforms to address forced evictions, ensure accountability, and protect the rights of vulnerable communities. Without meaningful intervention, Uganda risks deepening inequality and undermining the livelihoods of smallholder farmers who are essential to the country’s food security.

FAMILY JAILED AMID LAND DISPUTE

The plight of Richard Ssebagala, his wife Prossy Namande, and their relative Anania Ngabirano, residents of Kabubu-Kabongo village in Nansana Municipality, Wakiso district, highlights the human toll of Uganda’s ongoing land disputes. The family spent nine months in prison following their arrest on January 10, 2024, under controversial circumstances.

ARREST AND ALLEGATIONS

The arrests occurred at 1am, during a raid by officers from Luweero police station. Police reportedly banged on the doors and forcefully detained the family, accusing them of aggravated robbery. However, the family believes the arrest was a tactic linked to a land dispute with Benon Ntambi, a man who allegedly grabbed their land.

Before the arrests, Ntambi had reportedly destroyed crops, including tomatoes, potatoes, and bananas, on the contested land. While the family was incarcerated, a new building was constructed on their land, which is now occupied, raising further questions about the motivations behind their detention.

CALLS FOR JUSTICE

The case has drawn attention from Witness Radio Uganda, which has urged the government to take immediate action to address land grabbing and illegal evictions. The organization emphasized the need to strengthen land laws and protect vulnerable communities from abuses.

It also called for greater accountability in institutions such as the Uganda Police Force, the army and land registries, which are often accused of corruption and favoritism toward the wealthy.

“The government must prioritize justice for victims of illegal evictions and address systemic corruption that leaves the poor defenseless against land grabbers,” Witness Radio Uganda stated.

BROADER CONTEXT

This case underscores the broader issue of land conflicts in Uganda, where vulnerable families are often caught in disputes with powerful individuals or entities. Advocacy groups warn that the failure to address these issues not only erodes public trust but also perpetuates inequality and injustice.

As the government faces mounting pressure to act, the story of Ssebagala and his family serves as a stark reminder of the urgent need for reforms to protect land rights and ensure justice for those impacted by land disputes.

Source: The Observer

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WITNESS RADIO MILESTONES

Uganda: Community members violently evicted by security forces, allegedly related to EACOP; incl. co. responses

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On 10 February 2023, more than 2,500 community members were forcibly evicted from their land in Kapapi village in Hoima district in Western Uganda by security forces, receiving no compensation or resettlement.

Witness Radio, an Ugandan non-profit organisation comprised of human rights investigative journalists, lawyers, and social workers, said that many people were wounded during the eviction, women were raped, and houses were destroyed.

Witness Radio said its investigations found that this eviction occurred to clear the path for the Tilenga feeder pipeline, part of the East African Crude Oil Pipeline (EACOP). According to Witness Radio, in 2022 Kapapi community members’ land was surveyed for the Tilenga pipeline and people were informed they would be compensated for the land. Instead, they were forcibly evicted, which Witness Radio allege was backed and financed by Swacoff Intertrade Company Limited, known to TotalEnergies. They also allege that guards from private security company Magnum Security were involved. Witness Radio has also found that dozens of local farmers who were evicted have been arbitrarily arrested and face criminal charges.

The Business & Human Rights Resource Centre invited TotalEnergies, Swacoff Intertrade Company Limited, and Magnum Security to respond to the allegations. TotalEnergies responded and stated that no land eviction activities had been carried out by or on behalf of TotalEnergies EP Uganda (TEPU) and EACOP Ltd and that none of the affected people are Tilenga or EACOP Project Affected Persons. Swacoff responded and said that the company has never engaged in forceful eviction of any sort and asserts that these allegations are completely false. Their full responses and rejoinders from Witness Radio are available below. Magnum Security did not respond.

Source: Business & Human Rights Resource Centre

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WITNESS RADIO MILESTONES

Uganda: Land-grab victim communities will join counterparts in commemorating the 2024 International Day of Struggle Against Industrial Plantations.

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By Witness Radio team.

On September 21, 2024, land-grabs communities under their group, the Informal Alliance for communities affected by irresponsible land-based investments in Uganda for the first will join fellow victims in commemorating the International Day of Struggle Against Industrial Plantations, highlighting the growing threat posed by large-scale monoculture plantations.

These industrial plantations have led to the forced eviction of millions of people across Uganda, displacing indigenous communities and stripping them of their land rights and livelihoods. Driven by multinational companies and government-backed investors, with the support of government and private security entities, these evictions prioritize profits over people.

Among the many Ugandan communities still suffering the devastating impact of monoculture plantations are over 30,000 people who were violently displaced from the Namwasa and Luwunga forest reserves between 2006 and 2010 to make way for the New Forests Company’s pine and eucalyptus plantations. In addition, thousands of local and indigenous communities were illegally evicted to make way for palm oil plantations in Kalangala district. Nearly 4,000 people had their land grabbed by the Formosa tree planting company in the Mubende district, and over 35,000 were displaced in Kiryandongo to make way for industrial agriculture to grow maize, soybean, and sugarcane plantations, among others. These and other affected communities united and formed the Informal Alliance for Victims affected by irresponsible land-based investments to defend their rights in early 2019.

The International Day of Struggle Against Industrial Plantations was first celebrated on September 21, 2004, during a community network meeting fighting against industrial tree plantations in Brazil. Since then, it has become a day when organizations, communities, and movements worldwide come together to celebrate resistance and raise their voices, demanding an end to the relentless expansion of industrial tree plantations.

In Uganda, on Saturday, September 21, the 2024 commemoration will start with a radio program in a local dilect (Luganda) purposely to highlight weird experiences faced by communities displaced by large-scale monoculture plantations, struggles for justice, and holding companies and financiers accountable. A one-hour radio program starting at 10 a.m. EAT will feature leaders of the loose alliance. Listen to the radio program on Witness Radio platforms on the website www.witnessradio.org or download the Witness Radio App on playstore.

Later, land-grab victims in Uganda will join their colleagues from Africa and other countries around the globe in a webinar meeting aimed at fostering organizations’ and rural communities’ connection across member countries and communities to build confidence, share experiences, strengthen our campaign to reignite hopes and forge a bond of understanding between the Informal Alliance and victim communities shattered by destructive plantations as well as deterring future plantations expansion.

The Webinar will start at 3PM EAT and will be aired live on Witness Radio platforms on the website www.witnessradio.org or download the Witness Radio App on playstore.

Please note: Both the radio show and Webinar will be live on Witness Radio on www.witnessradio.org or download the witness radio app on playstore to listen live.

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