As Museveni’s endgame continues, corruption flourishes
Published on Monday 2 January 2017 Back to articlesThis year Uganda will see the continuation of President Yoweri Museveni’s endgame. While he could have another 10 years in power, Uganda’s elites are also conscious that he could be gone much sooner. This will be reflected in different ways. Grand corruption will continue to flourish as elites seek to make the best of these end days. At the same time, President Museveni’s moves to extend his time in office will be balanced by political manoeuvring by those seeking to succeed him. This will include his closest family, as well as his bitterest opponents. These will have a critical influence on the development of the petroleum sector as the Final Investment Decision approaches, and beyond.
The year has begun with revelations of the most outrageous rent seeking. Kampala news website, Chimp Reports, revealed that upon winning the Heritage/Tullow Oil Capital Gains Tax case, senior government officials involved in the case shared bonuses totalling over US$1.5 million. The payments were made after Tullow Oil paid the second of three instalments of US$36 million in settlement of the case in 2016. The total settlement was for US$250 million, being US$142 million that had been deposited pending dispute settlement in 2012, and once settlement had been agreed, US$108 million to be paid in three instalments.
The bonus pay outs were widely spread according to the report. The largest payment was of US$78,000 to Doris Akol, the head of the Uganda Revenue Authority (URA). The then Permanent Secretary at the Ministry of Energy and Mineral Development, Fred Kabagambe Kaliisa, walked away with US$37,000. Ernest Rubondo, and Honey Malinga, the Director of the Petroleum Exploration and Production Department and his Deputy, received approximately US$74,000 each. Chimp Reports details of payments ranging from US$25,000 to US$65,000 that were made to nineteen other officials in URA, the Ministry of Finance, and the Ministry of Justice and Constitutional Affairs.