14 September 2018

Uganda: Rich, Connected Ugandans Making Oil Cash, Says MP

Kampala — Mr Thomas Tayebwa, the Ruhinda North Member of Parliament (MP), has said few Ugandans are benefitting from the oil sector.

"You people who are in charge of the petroleum sector, this is a sector for Ugandans...

"But you have a very big task of ownership by Ugandans. When you walk around, you will find a few people - even when we are here fighting for local content - are going to benefit from this sector. And it is rich and connected. We are concerned," he said yesterday when the House Committee on Natural Resources questioned officials from Petroleum Authority of Uganda (PAU).

At least $873 million (Shs3.3 trillion) of the $3.318 billion (Shs12.6 trillion) invested in Uganda's petroleum subsector over the last nine years went to 1, 000 Ugandan entities.

PAU's director of exploration Dozith Abeinomugisha, said Ugandan entities provided civil works and environment consultancy services.

Other services included catering, provided accommodation, cleaned and fumigated premises, provided transportation, communication, medical, security, clearing and forwarding services.

Mr Abeinomugisha said the authority has developed a National Supplier Database (NSD) for the registration of potential suppliers.

"The main objective of NSD is to ensure that government is aware of the experience and capabilities of qualified Ugandans and foreign companies in the petroleum subsector," he said.

"This will enhance transparency in the procurement process and provide a one-stop database for procurement of licensed oil companies."

Tororo County South MP Frederick Angura and Aswa MP Reagan Okumu, said opportunities should also be given to smaller companies.

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