Disclose oil contracts to the public

We are living at a special time in the history of this country and it is not because of the events shaping the country but rather our development trajectory. The National Development Plan (NDP) 11 that run from 2015 to 2020 had projected that Uganda would, by 2021, be a middle income status country.

This projection was premised on the fact that around 2021, the country would be an oil and gas producing country. 

This, unfortunately, has not happened and is likely not to happen by the end of this year. With the new development trajectory, where the government has decided to move from sector based budgeting to project based budgeting, then the adaption of the new development agenda dubbed the Parish Development Model and an expected re-alignment of government ministries, departments and agencies to reflect the development needs of the time, together with the expected extraction of oil and gas from the Albertine grabben being anticipated to propel Uganda into the middle income status country by 2025. 

These developments notwithstanding, many like-minded Ugandans still believe that the single most important factor curtailing development in this country is corruption, a recent study by the World Bank revealed. With the huge investments and returns expected from the oil and gas sector that is in its final stages of extraction, only prudent management of the sector resources can propel the country into her next destination - the middle income country. 

This year, President Museveni and his Tanzanian counterpart, Samia Suluhu Hassan, and representatives of oil companies CNOOC and Total signed the East African Community Oil Pipeline (EACOP) tripartite project agreement which gives hope that within two years, Uganda could have commercial production of oil.

However, the contracts signed are not yet within public reach.  It should be noted that Article 41 of the 1995 Constitution expressly states that every Ugandan is entitled to access information in the possession of the State or any other organ or agency of the government.  

“Paragraphs XXVI and XXIX (a) and (f) of the National Objectives and Directive Principles of State Policy in our Constitution requires that all lawful measures shall be taken to expose, combat and eradicate corruption and abuse or misuse of power by those holding political and other public offices. 

Also, Section 34 of the Access to Information Act provides for mandatory disclosure in public interest states that  an information officer shall grant a request for access to a record of the public body, which is otherwise prohibited under this part.  

In February 2019, the Ugandan government made a decision to join the Extractives Industry Transparency Initiative (EITI) and went on to establish National Multi-Stakeholder Group to steer this process. By August 12, 2020, Uganda was officially admitted to join EITI, having submitted its application candidature to the International EITI secretariat in July 2020. Uganda is expected to produce its first report in February 2022. Transparency is an integral and systematic part of extractive sector management and EITI implementing countries are increasingly making more information available online through systematic disclosures. The Uganda government should therefore follow suit and make available to the public all contracts made in the sector of mining and oil and gas.  

Data should be disclosed at source through government and corporate databases, online registries, websites and portals to provide citizens and stakeholders with accessible and up to date information on the sector.

The benefits of mandatory disclosure stretch beyond citizens and communities, to include a variety of stakeholders. For investors, it helps to assess country and project specific governance and reputational and tax risks. For companies, enhanced transparency is vital and paramount for business as it helps to promote a more stable investment climate and secure a social license to operate. Greater revenue transparency can also improve profitability in foreign investments.  

Furthermore, transparency will benefit resource governance by providing a tool to the government to build capacity for tax collection and management. Mandatory payments disclosure will help companies credibly communicate their financial contribution to local and national economies. 

John Robert Tumwesigye Baganda is the Coordinator, Publish What You Pay Uganda
[email protected]