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Poverty bites as locals in oil fields wait for pay-out

Communities in Hoima District affected by oil projects demand compensation. PHOTO | FILE

As government continues to prospect and explore oil wells in parts of western, central and northern regions, scores of homesteads that  have been displaced by the quest to have oil exports ready by 2025 have lost farmlands.

In Kakumiro District in western Uganda, more than 200 people affected by the East Africa Crude Oil Pipeline (EACOP) have cited delayed compensation of their properties in the wake of signing of the tripartite pipeline between oil companies and Uganda and Tanzania governments.

Daily Monitor has established that the affected persons are mainly from Mpasana, Kisiita, Katikara, and Ntoroko sub-counties in Kakumiro. 

The communities claim that they were promised compensation in 2018 but are yet to receive it.

 Mr Stephen Twijukye, the Kyajawe Village  chairperson in Mpasana Sub-county, said those affected have lost hope of getting their compensation. 

Mr Twijukye said the delays have made their lives miserable since they are no longer allowed to use the land.

Ms Alice Kemizano, another affected resident, said she has not received information on her compensation package because her husband, who used to pursue the process, died.

Worry

“My land was largely affected by the pipeline project, including my two houses. My husband died recently and I have no information about when and how I will be compensated,’’ Ms Kemizano said.

Other residents claim they were under-valued for their land because of lack of clear compensation rates.

Mr Jasper Nshekanabo, a member of the project affected persons (PAPs) grievance committee in Mpasana Sub-county, said delayed compensation has left them in poverty.

‘‘To date, we don’t know how much we are supposed to be paid. We want our leaders to intervene and ensure that we are paid. People wanted to grow crops but they were told not to use the land, hoping that pipeline activities were going to start immediately,’’ Mr Nshekanabo said.

The Kakumiro chief administrative officer, Mr Joram Sekitoleko, recently told the affected persons that the government will compensate them before the end of this month. 

Mr Tom Baijana,  a resident, said it was a wrong for government to start the project, saying oil is a non-renewable resource. 

“Oil is not renewable, and we need to plan better as country but the mistake we have made is on making oil pipeline, if the oil wells dry up, what will be the use of pipeline? Instead, we should build many oil refineries for more employment,” he said.

Mr David Kakumirizi, one of the affected residents at Kiyuni Village,Mulagi Sub-county, Kyankwanzi District, said government officials last updated them about the project two years ago. 

“It will be unfair to give us the money which was quoted after evaluating our property yet prices of property keep changing,”  Mr Kakumirizi said. 

In the 296km-Uganda pipeline section, at least 4,121 persons will be affected by the oil pipeline, of whom 2,199  are bibanja holders, 1,056 land owners and 866 are licensees.

Mubende is the most affected with 33 villages crossed by the pipeline, followed by Kakumiro with 25, Kyotera and Kikuube districts have 20 villages, while and Lwengo and Sembabule have 19 villages each.

Mr Sam Walugembe , a resident of Kamusenene Village, said although they were asked to open bank accounts and get tax identification numbers, they  have not received compensation .

“The more government delays to pay us, the more we make losses, let them give us our money so that we get alternative land where to resettle,” he said.    

Mr Reuben Mukiza Mutabaazi, the chairperson of Butoologo Sub-county in Mubende, said 150 residents accuse him of swindling their compensation money .

Information disclosure

Early this month, the African Institute for Energy Governance (AFIEGO) together with the Community Transformation Foundation Network decried failure by the EACOP project developers to officially share the resettlements action plan (RAP).

RAP is a document that spells out how compensation and physical relocation of PAPs will be done.

Ms Dinah Nabiluma, an officer from AFIEGO, said there are no budgets for environmental monitoring which makes the environment vulnerable to the project.

“Environmental officials in districts where the project will be done lack funds to supervise the project and come up with guiding reports which affects the environment,”  he said.

However, Ms Josephine Nnabbaale, the Mubende communications officer, said government has dispatched a team of valuers to listen to fresh concerns from PAPs.

“The team is already on the ground and I am sure they will capture new developments and report back to government before actual construction works kick-off,” she said.

At least 200 youth from Nwoya District are undergoing a skill-enhancement training in preparation for the oil exploration and extraction activities in the Albertine Graben.

 The  district senior community development officer, Mr Jopseph Komakech, last week told Daily Monitor that the district administration partnered with Total E&P to embark on a skill training sponsorship for youth in the district.

“Many youth are now receiving capacity enhancements and training in the various fields such as driving and metal fabrication so that they are prepared to compete with others across the country when the time for the works begin,”  he said.

Mr Komakech said they have not registered any PAPs in the district since the fraction of the affected land is inside   Murchison Falls National Park under Uganda Wildlife Authority. 

At the beginning of the year, the Petroleum Authority of Uganda (PAU) published data about opportunities that await Ugandans in the project.

The report showed that at Tilenga and Kingfisher oil development projects,  beans, cassava, maize flour, and rice are  among the crops that will attract the highest demand.

“As these opportunities unfold, farmers are encouraged to register on the National Supplier Database (NSD), and consider forming associations or cooperatives to be able to meet the expected demand consistently,”  Mr Patrick Okello Oryema, the district chairman, said.

 For a company to be a participant in the project, it must be incorporated in Uganda, carrying out value addition to their goods and should be employing at least 70 per cent of Ugandans.

 It must also be approved and registered on the national supplier database of the petroleum authority of Uganda.

 “We need to disregard these myths. Some people think oil has already been drawn and sold to other countries while others say that before the tenders are published in media, the tenders are already awarded,” Mr Akaya said.

Compensation underway - Government

The Permanent Secretary in the Ministry of Energy and Mineral Development, Mr Robert Kasande (pictured below), said people in affected areas have not been displaced. Mr Kasande said the compensation exercise started with sensitising people in oil districts, and later, a resettlement action plan was drawn. 

He said the roadmap to the compensation plan started with the  measurement of the size of land for the affected persons and then a valuation consultant was hired. Mr Kasande said the findings were shared at the sub-county headquarters and local councils. He added that after, a period of grievance is given for property valued and  communication is sent to the government valuer. Mr Kasande said after a valuation is done, a cut-off debt for development is given.  A cut-off debt for development is the agreed pay for the property at the time of valuation of the developments on the land and properties found on it. The permanent secretary said after disclosure of values, when persons to be paid consent, the government valuer approves the line department in given ministry to pay compensation. “The payments are going to start, there is no need for people to worry, these companies we are dealing with in the oil business are multi global companies listed on global stock markets,” Mr Kasande said. 

He said after compensation is done, the people will be given three to six months to find suitable places to relocate. “The people in those areas are allowed to grow short time crops, it is not true that they have been displaced,” Mr Kasande said. He said most people have been compensated in Buliiisa and Kikuube , but a few have disputed the rates given. “Those who have not been paid are absentee landlords,” he said. Mr Kasande said those families that have lost their breadwinners should not worry because there is social component in the compensation process.

Compiled by Simon Peter Emwamu, Alex Tumuhimbise , Alex Ashaba,  Al Mahdi Ssenkabirwa, Edison Ndyasiima Brian Adams Kesiime, Fred Ssewajje & Wilson Kutamba & Tobbias Jolly Owiny