The curse of oil: Uganda Oil bubble bursts


JF-Expert Member
Nov 22, 2007
An MP yesterday submitted a document fingering ministers, including Prime Minister Amama Mbabazi, as having pocketed billions of shillings in commissions as the House opened a stormy debate on what they called the “shameless corruption” ripping through the oil sector.

The dossier titled: “Brief on Uganda’s Oil deals” was tabled by the Youth MP for Western Uganda, Mr Gerald Karuhanga, containing alleged details of dates and bank transactions through which the illegal payments were reportedly made.

Mr Karuhanga said he was “ready to die for telling the truth” as he identified Foreign Affairs Minister Sam Kutesa, former Energy Minister, now Minister for Internal Affairs Minister Hillary Onek and former Security Minister now Prime Minister Mbabazi as the alleged beneficiaries.

Mr Karuhanga said Mr Kutesa was at one point given Power of Attorney by Tullow Oil, a British company involved in oil activities in Uganda, and that he received Euros 17.5 million (about Shs68.5 billion)

The money was allegedly processed under the name of the East Africa Development Limited in Nairobi, Kenya. Under the deal, Mr Karuhanga said Mr Kutesa was to receive the money through his bank, EFK bank in Zurich. According to the dossier, between June 21 and August 2010, Eng. Onek received a total of Euros 5.6 million (about Shs21.9 billion) from Tullow Oil, reportedly paid in several installments.

It is alleged that Onek received the money through an Emirates Bank account in Dubai, United Arab Emirates (UAE). Mr Karuhanga told Parliament that Tullow pledged $100 million (about Shs286.4 billion) to “these well connected influential Ugandans” in relation to the arbitration case in London.

Askari Kanzu

JF-Expert Member
Jan 7, 2011
Waganda kwa hili wanajitahidi kuliko sisi!

MPs Order Ministers to Resign Over Oil

Posted by: Staff Writer on 12th Oct, 2011 at 05:58PM


All ministers who were implicated in corrupt dealings with foreign oil companies allegedly involving billions of shillings in kickbacks must vacate their positions in government with immediate effect to pave way for investigations, MPs resolved late last night.

This bipartisan resolution, which appears unprecedented, brought down the curtain on to two days of a special House sitting called to discuss the country's oil sector. Prime Minister Amama Mbabazi along with Foreign Affairs Minister Sam Kutesa and former Energy Minister and now minister for Internal Affairs Hilary Onek have been asked to step aside.

While the original motion had proposed that the government sets up a judicial commission of inquiry, MP Rosemary Sseninde (NRM) successfully moved an amendment, saying an ad hoc committee of Parliament instead investigates the matter. The affected ministers are expected to leave public office until the committee to be established when Parliament reconvenes on October 25 has tabled its findings within three months.

Ugandan Prime Minister Amama Mbabazi, Sam Kuteesa, the minister for foreign affairs, and Minister for Internal Affairs Hillary Onek allegedly benefited from billions in bribes from oil company, Tullow Oil Plc.

Mr Onek, who made desperate appeals to save himself, told Daily Monitor that he was going to resign today. Mr Kutesa, who told the House in the morning that he was innocent, did not return in the afternoon and the resolution was passed in his absence while Mbabazi told Daily Monitor that he is not going to resign. Mbabazi said: "I have no problem with investigations because I have nothing to hide but to resign we are going to have chaos if people are going to resign because someone has made baseless allegations."

Attorney General Peter Nyombi tried to save the ministers but in vain. Mr Nyombi told the House that there was no law within which ministers were being asked to vacate their offices. But Geoffrey Ekanya (FDC, Tororo) said Article 114 of the Constitution which speaks to parliamentary approval of ministerial appointments can still be the basis upon which they are asked to leave office.

Speaker applauded

Army representative Gen. Elly Tumwiine said: "Enough is enough on corruption; there is no smoke without fire. People have different consciences; there are those who have their ego beyond the national interest, I don't see any problem in resigning a job once you're suspected. Take the Army (UPDF) whenever our member was accused of corruption they have to leave their post [until] they were tried and this is the practice the world over. It's not wrong to make a mistake but it's a mistake to repeat a mistake."

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