The limitations of the oil and gas industry in Uganda is combined and conformed by this certain institutions:
Parliament, Revenue Authority (URA), Bank of Uganda (BoU), and the National Oil Company (NOC), the Auditor General (OAG) and the Petroleum Authority of Uganda (PAU) and the Petroleum Exploration and Production Department (PEPD) (Magelah, P1, 2014).
The biggest issue for all the institutions in Uganda is the financial and human resources to enforce their mandate on the matter: “At present the house has about 5 full time researchers for about 370 Members of parliament” (…)”Under the PFB for example the minister has powers to change from the goals of the Chatter of Fiscal Responsibility without seeking parliament’s approval, under clause 61 the minister can direct BOU on what to do, the minister appoints the petroleum investment committee and under clause 59 the minister can chose where and in which form investment of petroleum funds should be. The framing of clause 59 is such that the minister’s decision on investment of petroleum funds is final and all institutions must obey it. Under clause 71 the minister keeps the excess funds meant for district” (…)”One such example is BOU which according to article 162 of the Uganda constitution provides that BOU should be independent and not subject to the control or direction of any person” (Magelah, P2, 2014).
Three other main concerns is the basic movement between government agencies: “The end result has been court cases where oil companies are challenging URA for taxing them. It is clear from these cases that the PEPD never consulted URA in granting tax exemptions and his has resulted in the present situation”.
Second concern is: “The NOC was created under the petroleum upstream act, however the act did not provide for funding, accountability and auditing of the NOC”. Where its hard to prove and also see if there are transparency for the agencies and governmental organizations and also see the progress of the companies who drill the oil.
Third concern: “here is also luck of provisions for participation in Extractive Industry Transparency Initiatives (EITI). The National Oil and Gas policy provide for government to participate in the EITI”. It says itself: you can now see how limited the organization in Uganda is on the matter of drilling and oil and gas. Their mandate and little manpower from both the 5 researchers and to support the 370 MPs. So we can now see how this will affect the new industry and how these weak and vague institutions will keep the upkeep for industry as whole.
Magelah, Peter Gwayaka – ‘Institutional Limitations for Uganda’s oil and gas sector Paper presented at workshop on Deepening Transparency and Accountability of Extractive Sector in East Africa’ (17.09.-19.09. 2014)