Museveni defends oil handshake

Oil cash probe. President Museveni (left) interacts with MPs probing the oil cash bonanza led by the chairman Abdu Katuntu (2nd left) during their meeting at State House Entebbe on Wednesday. PPU PHOTO

What you need to know:

  • Reward. The President told MPs he believes the payment was in the interest of the country.

PARLIAMENT.

President Museveni on Wednesday defended the Shs6b oil cash handshake he sanctioned to be paid to 42 selected government officials who successfully defended Uganda’s tax claims against oil exploration firms.

In a meeting with a parliamentary committee investigating wide-ranging abuse in the oil sector, Mr Museveni described the Shs6b payment as ‘an ex-gratia payment to economic heroes’ and vowed to defend the presidential handshake with all his authority.

The President told MPs he believes the payment was in the interest of the country and that it was the right thing to do for officials who won the Capital Gains Tax (CGT) case against Tullow.

Mr Museveni, however, observed that there were errors in the process that led to the payment of the money and that he would have rather withdrawn resources from his presidential pledges budget rather than use money allocated to Uganda Revenue Authority (URA).

The Wednesday meeting was not conclusive because Mr Museveni had to jump out to welcome visiting Equatorial Guinea President Teodoro Obiang.
Mr Nguema who is in Uganda on a two-day State visit. An exit meeting with the President was scheduled for yesterday afternoon.

Correspondences before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) indicate that Mr Museveni convened a meeting at his country home in Rwakitura on May 17, 2015 where a request for a reward was tabled by a team that had won the two oil cases.

URA Commissioner General Doris Akol and bureaucrats from the Finance and Justice ministries attended the meeting.

Following the meeting, Mr Museveni wrote a letter to the Finance Minister Matia Kasaija directing that officials who were involved in helping Uganda to win the oil cases should be considered for a reward.

Mr Kasaija then liaised with Ms Akol and Solicitor General Francis Atoke to compile a list of 42 officials from URA, Justice and Finance ministry who would share out Shs6b for their role in the oil cases.