Don’t steal oil money, partners warn govt

The Deputy Head of Mission at the Embassy of Denmark; Mr Henrik Jespersen (left) and Inspector General of Government, Ms Betty Kamya (R) during the breakfast meeting on the anti-corruption strategy, in Kampala yesterday. PHOTO / ISAAC KASAMANI

What you need to know:

  • They made the remarks during a meeting with the Inspector General of Government, Ms Beti Kamya, in Kampala yesterday.

Development partners have warned the government of the looming implications of the current corruption trends on the oil revenue, saying if unchecked could affect returns from the project.

They made the remarks during a meeting with the Inspector General of Government, Ms Beti Kamya, in Kampala yesterday.

The meeting was held to discuss ways  in which to tackle corruption and the new Inspectorate of Government strategic direction on the same.

Mr Richard Nelson, the mission director at USAID,  who represented the US ambassador, asked the government to reduce the cost of corruption.

“Looking at the figures of how much money is lost in corruption it is important for the IGG to deal with transparency and accountability. This is because all the oil revenue could be lost in corruption which is dangerous for the country,” Mr Nelson said in a separate interview with Daily Monitor.

A recent IGG report indicated that Uganda loses close to Shs20 trillion in corruption per year, nearly half the budget for the next financial year.

The report also indicated that at least Shs451b is lost in healthcare and education services, Shs86b in security provision, and another Shs590b in procurement and budgeting.

Also, a total of Shs233b is lost in regulation, Shs131b in taxation, Shs459b in user fees utilities, Shs820b in natural resources, and environmental degradation Shs15b.

While the oil project is expected to cost at least $3.8b (Shs13 trillion), the government is expected to earn annual revenue of $2.3b (Shs8.5 trillion) at transit tariff per barrel of crude oil going through the pipeline capped at $12.77 (Shs46, 327).

A 2014 study titled, ‘a survey to foster opportunities for Ugandans in the oil and gas sector', commissioned by government and oil firms detailed that the oncoming development and construction phase will create about 250,000 direct and indirect jobs.

Mr Nelson argued: “If the government can save Shs20 trillion it loses to corruption, and with the $2.3 (about 8.5trillion)  it will have an additional Shs28 trillion to service its budget.”

Ms Kamya revealed that they have rolled out a lifestyle audit   that will help fight the vice within a short period.

“This observation is very important to note. The oil project is such a big opportunity for Uganda and involves the “big fish” who are very slippery which is why we have introduced the lifestyle audit. This will work and the problem will be dealt with,” she said.

In October last year, Ms Kamya proposed a lifestyle audit as the only way to catch corrupt high ranking officials. But in December, during the commemoration of the International Anti-Corruption Day at Kololo Independence Grounds, President Museveni told the IGG to go slow on the strategy although he launched it.

Ms Patricia Achan Okiria, the deputy IGG, said fighting corruption is challenging as problems seem to be an illusion to many people.

“The first thing we want to do is give corruption a face so that people know what it is. Like when HIV/Aids had just entered the country, many people thought it was witchcraft and it took scientists to give it a face for the war to start,” Ms Achan said.

Ms Kamya revealed that her office is investigating 160 government officials under the lifestyle audit as the office moves to recover government funds.

Those under probe include 37 officials from the Inspectorate of Government,  53 accounting officers of Central Government, and 30 chief administrative officers.

Others are 10 town clerks and 30 heads of government agencies.

“Already nine names have been submitted to the tribunal for hearing as we continue with investigations. Our work is to investigate and thereafter send them to the tribunal or civil courts for hearing,” Ms Kamya said.