Commentary

Transparency in oil dealings is the way to go

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By Timothy Opobo  (email the author)
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Posted  Tuesday, February 23  2010 at  00:00

The discovery of oil in Uganda has generated intermingling feelings amongst the general population. To some; it’s viewed as an avenue out of poverty and gate way to prosperity, others wonder whether the curse that has be-devilled other oil rich countries will equally befall the nation, while the majority of Ugandans are generally oblivious to the matter.

This does not necessarily come as a surprise, since the government has been tight lipped in revealing or rather sharing with the general public the agreements reached regarding the pending exploitation of the oil, but more critically the policy for equitable distribution of revenue expected to be generated from this sector. A recent article published in the Irish times noted that in the Tullow Oil’s Uganda headquarters ( the company responsible for the exploration and exploitation of the oil fields ), hangs a framed gift from President Museveni, who autographed this with a Swahili word –Zindangire (dung flies) next to his signature.

This, according to Brain Glover Tullow’s Uganda manager, was to act as a constant reminder for him to be on the look out for corrupt officials who seek bribes. It was also meant to be a symbol and signal that transparency in these dealings was paramount.

This seems quite ironical, given that those who have dared demand transparency end up having to battle out their case in court. The government argues that it has got the best deal with the contracts and that disclosing them would undermine efforts to renegotiate new contracts, while Tullow oil maintains that it would happily release these agreements if allowed by the government. The manner in which government has already handled the process this far, raises fear among sceptics that indeed the contracts signed may not be necessarily advantageous to Uganda as they claim.

These fears are affirmed in a 40-page report titled: Contracts Curse: Uganda’s Oil Agreements Place Profit Before People, that extensively quotes the agreements pointing out that the oil firms will reap extra-ordinary profits. It further alludes to the fact that, the agreements as they stand will only exacerbate poverty, increase human rights violations, entrench the power of military forces and distort the Ugandan economy. Rather than speculate doom or express optimism, only time will either vindicate government or prove the critics right. However, the issue of transparency should fundamentally carry the day.

Ugandans surely have a right to know what agreements the government is entering into on their behalf, and more importantly how these resources will be utilised for the betterment of their lives.
For the citizen’s of a country said to be under democratic rule this is honestly not too much to ask, especially if the government claims to represent the best interest of its people.

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Mr Opobo is currently an Irish Aid Fellow at the University College Dublin

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