11 December 2012

Uganda: DP Warns Government On Oil

Photo: Rogers Okwany/NewVision
Members of Parliament failed to vote on the oil bill after a chaotic plenary.

Opposition Democratic Party has warned the government to handle the oil issue with care or else it can lead to political turmoil.

According to DP there is enough evidence that president Museveni has personal interests in the industry

"The available evidence indicates that President Museveni has personal interests in the industry and as a result revenues will varnish into the pockets of foreign companies and government corrupt officials" said Jude Mbabali during the weekly press conference in Kampala

Mbabali who described the situation as an oil curse said that DP is worried that citizens would lose influence once license are issued to the companies.

DP recommends that awarding contracts should be competitive, calling for companies to invest in oil and the people should know what is going.

Secondly the DP says that the government should avoid the stability clauses in some of the agreements which allow companies to pay a particular percentage of revenue irrespective of global increases in prices of minerals in the market.

The opposition party challenges the government to put in place the structures and the legal framework that would promote transparency and accountability thus prevent "resource curse".

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