16:45 EAC: I will tell you about fighting corruption when you come back from recess. You wait, my kick takes time to produce results. Only the one with experience to solve previous problems can solve the current ones. It the NRM that stopped road blocks, that stopped corruption in Uganda Revenue Authority that built a professional army. It is the NRM that will eliminate corruption in the public service. We have now entered that phase. The exposure of corruption in the Office of the Prime Minister, the Ministry of Public Service, Bank of Uganda, the Ministry of Finance, was mad by NRM cadres, police and me when I was informed. The dishonesty of people who are talking about corruption is shocking.
The Auditor General did not discover corruption in public service and the Office of the Prime Minister. It was NRM cadres who made the alarm and moved in before involving the Auditor General. When I hear the lies on the radio, I get shocked. The NRM is the one which fought the previous battles and has started fighting the current one (corruption).
NRM members should be proud about this. NRM cadres have stopped the theft of drugs in health centres across the country. If the drugs are finished but not stolen, that is another matter.
The theft of the Basajjabalaba money was discovered by NRM supporters even before Parliament was informed. Therefore, stay tuned, you will hear how NRM will kick corruption out of the public service.
End of session
16:30 EAC: Foreigners always get it wrong. They supported Idi Amin but we opposed him. When we were disarming the Karimojong, they opposed us through a UPC member David Pulkor. At the end of the day, we were right. I don’t listen to foreigners. I listen to them when they are right and talkin in a nice way. If they don’t talk in a nice way, I tell them to go to hell.
Then there are some who have bad manners. Let’s talk about Bishop Niringiye for example. I did not hear his efforts in defence of Ugandans who were being slaughtered during the bad past regimes. He was found wanting at the crucial hour. Ssekikubo was around when Kony was killing, maiming and raping Ugandans. What did this young fighter do to help us? I did not see Ssekikubo volunteering to help us. The situation in the country has stabilised. Inflation has come down. Besigye was saying the economy will not recover but inflation now is less than 5 per cent despite his riots. Load shedding has reduced after completion of Bujagali Dam.
16:15 EAC: The malignment by some internal sabotage on behalf of foreign parasitic interests should be fought legally, politically and in the media.
Do you know how CNOOC from China came in, there was ENI, if Mbabazi ate their bribe, he ate for nothing (laughter) because they didn’t get the licence. I am not saying he (Mbabazi) did.
16:02 EAC: They resort to Ssekikubo, Nuwagaba , Katuntu and others. This is part of giving licences because if you don’t do what I want you to do, I cancel the licences. I punish you by revoking the licences.
The success of oil programme will mean economic independence for the country. At these seminars in various hotels in Kampala, they were giving Shs1 million per person who attended. The so-called facilitators were being paid Shs5 million per person. Some of these are leaders in the politics of Uganda. I have written to the IGG about these foreign agents. I am told one NGO spent Shs1.5 billion to organise a seminar in Kampala. Where do they get this money?
16:02 EAC: All these are funded by foreign interests. The recent circus on clause 9 on whether the minister should issue permits or revoke them is not about the minister. It is about the scientists we have. The minister is an electrician. These people they wanted to avoid were the petroleum scientists in the ministry of energy because they have blocked so many of the schemes by foreign interests. The clause is not about the minister but the ministry. By the time they went to Ssekikubo, they had approached me. They argued that the scientists although they discovered oil, they didn’t know how to negotiate. Ssekikubo is the new route. When they say avoid the minister, they are targeting the scientists who have blocked many criminal schemes.
For example, one of the schemes is the recoverable oil. There is 1 billion barrels but what you can pump out is only a portion. Recently, one of the oil companies in their field development plans, said they would recover only 7% of the oil. They put this in writing. The scientists said that was impossible and they started saying the scientists are not co-operative.
We have documents where someone is proposing pumping only 7%. These companies are interested in quick money and go away after damaging the wells. That’s why they are resorting to these various oil fora
15:45 EAC: The other area we need to look at is real estate owned by the government. Idi Amin bought a house in New York and it is bringing in more than one million dollars per annum to Uganda. What if we had property in other countries like Brazil?
The Amir of Kuwait gave the African Development Bank 100 million dollars in the 90’s when Saddam Hussein had invaded his country. He was in exile but able to give such a donation. He was even uncomfortable to make such an offer which he thought was small. He was getting that money from Kuwait Oversees Development Company that generates money for Kuwait.
15:40 EAC: We need to diversify the economy from agriculture and minerals. We had the will but no capacity. The oil will give us the capacity. Even without oil, we had started UPE and USE and the emphasis for science education in Uganda. Oil money will also be used to construct roads, to improve agriculture though irrigation.
15:35 EAC: The money from oil should only be used to build durable capacity for future generations. We need at least 40,000 MW of electricity. We now have about 800 MW. That level of electrification will enable us to run our economy with or without oil. We shall be able to manufacture. We shall prosper even when oil is exhausted.
We need to train scientists, relying only on human muscle cannot improve our economy.
15:30 EAC: They wanted us (oil companies) to swear that we don’t tax oil companies because it would change the profit levels that had extimated. But what if you make super profits above what we would have agreed upon?
It was eventually agreed but it took us time. We had wanted Net Presence Value as a scientific formula to calculate profitability levels and eventual taxes. That has been settled and we scored.
15:26 EAC: That is why I went to Iran and found out that they have nine refineries and are planning to construct more seven refineries.
There will be a refinery in Uganda. They know that I will not change. Now they (oil companies) have started advising us that we can share a refinery with Sudan and Kenya. You block them here, they resurface from elsewhere.
15:24 EAC: The disadvantages I have given you are the disadvantages that will be suffered by countries like Ghana and Nigeria that are near the coast line. We shall suffer when we just export crude. Being landlocked, we shall be charged transit charges to transport the crude. For example, if we use 20 dollars per barrel, to pass through Kenya, and the products another 20 dollars. That is 40 dollars being lost per barrel. Because our petroleum is waxy, you must continue heating the pipeline and this is additional expense. It will make us lose more money.
15:16 EAC: The other mistake that occurs in African countries is the failure to build oil refineries. All the associated jobs are exported to foreign countries. You also lose the by-products like diesel, PVC for plastics, bitumen, paraffin, aviation fuel etc. That barrel you export has all those products and you now start importing them. So without a refinary, you can miss about 20 by-products of oil. That mistake, we avoided. Uganda avoided that because we knew. There was some campaign against getting a refinery, but we defeated these people by facts that Uganda needed the refinery.
15:12 EAC: Before 1990, the whole soviet block was closed and that is why Shell BP came to Uganda. When communism collapsed, they forgot about our oil in Uganda and went to Russia. I called them to discuss what they wanted me to discuss in 1986, but they refused to come because they argued that there was no oil in that region. These are the same people who were interested in the resource in 1986.
Following our success, oil companies are now scrambling for the resource. For Hon. Ssekikubo, Nuwagaba, etc, to malign the achievement of our own scientists
What they are doing is an unforgivable sin. It is sacrilege. To stand here and use the forum of Parliament which I created for you through sacrificing blood, in unacceptable.
Uganda is the first African country to discover the oil itself.
15:08 EAC: When we signed these production and sharing agreements, we had no proof that we had oil by that time. Even me and our scientists didn’t know. When you spend time talking about minister, minister does not work alone. She has a team of experts.
If those scientists could guide us well then, what is the problem now?
I am waiting for my medal because I feared to get into agreement with BP. It was a correct decision. How do I know about oil? If you can ask me about cattle, I will tell you a lot.
Mistake two we avoided is that Uganda is the first country to discover oil in the African Rift Valley all the way from Red Sea, to Malawi to L. Albert. It was because of our scientist who did the necessary gravity survey studies and confirmed the presence of oil in the African Rift Valley.
15:02 EAC: Some people are trying to cripple and disorient the development of Uganda’s oil sector these include some MPS and non-government organisations.
It is not the first time, however, because even when we were fighting the cattle rustlers, and Kony, some of these people including some religious leaders who were opposing us.
These people are now acting on behalf of foreign interests. I have been fighting to defend the future of Uganda and interests.
In 1986, a team of BP Oil Company from UK came to State House and wanted me to give them a contract to explore oil near Lake Albert. I sent these people away because no Ugandan had knowledge about oil. I then embarked on sending Ugandans abroad to train in petroleum studies. We now have our own experts. Uganda has avoided and will continue to avoid mistakes that were made by some African countries.
14:50 EAC: Opposition members have absconded and the section where they usually occupy is almost deserted. Most NRM members are present.
Jacob Oulanyah, deputy speaker is chairing the session.
Sit freely whenever you fill like.
Oulanyah welcomes the President upon being honoured in Russsia to recognise his political and military leadership.