Uganda-Rwanda Tension Part VIII: A look into the Parliament Report on the closure of Uganda-Rwanda Border

On the 23rd August 2019, the Minister of State for East African Community Julius Wandera Maganda sent the report on the Closure of Uganda-Rwanda Border. This report has been made to update the EAC Committee. Still, the public deserves to get the numbers and the gist of the closure. What it really means in the hard numbers and with the cross-border trade.

Clearly, the closure has had an affect on both republics. As the Report states are that:

Following the closure of Cyanika, Katuna and Mirama Hills Border Posts on the 27th Feb 2019 by the Republic of Rwanda, as part of their mandate, the Ministry of East African Community (MEACA) has undertaken a number of steps as indicated below”.

There has been certainly new rules for entry between Uganda-Rwanda:

i. There is still free movement of persons (Ugandan Nationals and other Nationalities) to and from Rwanda save for the Rwandan citizens who are only allowed entry and no ex;.t from Rwanda.

ii. The only Rwandan nationals allowed exit from Rwanda from the borders above are the drivers on transit to Kenya and not to Uganda.

iii. It was also noted that the Ugandans who cross to Rwanda only go there mostly to attend Parties or Funerals, and not business as the environment for Ugandan goods and products is hostile.

iv. Whereas Ugandan nationals are allowed to enter Rwanda, it is unfortunate that Ugandan goods/products arc not allowed entry. These are rejected with no reasons given, no rejection notes/documents are provided. Many drivers have suffered the disappointment of being told to turn back to Uganda”

All of this has consequences. Just as the financial implications by this alone. The Ministry can show that in FY 2017/18 value the imports from Rwanda at 160,293,270,436 UGX and in FY 2018/19 it has gone down to 123,338,816,439 UGX. This is downfall of imports of 23.05 % from the last year.

The consequences for the export to Rwanda is also hit. In FY 2017/18 was 585,436,037,282 UGX and in FY 2018/19 is 426,884,832,406 UGX. This is a downfall of export in the amount of 27,08 %. from the last year.

The results of the closure of the border at Katuna has ensured that there was no trucks passing this pass, between March 2019 to the June 2019. When the trucks started to crossover again. Still in a fraction of what was done in the past. Before February 2019, the average inflow and outflow of trucks was above 3000. However, in the months of March to June 2019, there was less than 500 every month. Even ZERO in the months of April and May 2019. Before, the numbers has started to rise, but not more than 300 in June 2019. Surely, One-Tenth is a major change and has affect.

This has resulted in more traffic, within the inflow and outflow at the Mirama Hill. Until February 2019, there was usually about 300 passing in both directions. However after this it was around 2000 trucks passing through every month between March to June 2019. Which is showing that there are blocking of trucks and also the total numbers of trucks passing on both passes is less than 3000 in both directions. That is really hurting the cross-border trade between the Republic’s. It is easy to see.

The closure has had an affect and the new measures on both sides. Has hit the trading, but also general movement. That is visible and surely, would be nice to see what the Rwandan Parliament would write as a counter to the Ugandan side. To see if their have another explanation for this. Peace.

Uganda: Statement on the Status of Tullow Farm Down (29.08.2019)

Tullow Oil terminate agreement with Total and CNOOC over a tax dispute in Uganda

Today, the agreement published between Tullow, Total and CNOOC made a Sale and Purchase Agreement (SPA) on Area 1 and Area 2 in the Lake Albert Basin in the Republic of Uganda. That deal was issued on the 30th August 2016.

Now, nearly three years later. Tullow Oil has now back-tracked and said the deal didn’t go through. Surely the SPA and the Joint Venture Agreement wasn’t settled properly. If not, then the press release of Tullow wouldn’t say this:

Tullow Oil plc (“Tullow”) announces it has been informed that its farm-down to Total and CNOOC will terminate at the end of today, 29 August 2019, following the expiry of the Sale and Purchase Agreements (SPAs)” (…) “The termination of this transaction is a result of being unable to agree all aspects of the tax treatment of the transaction with the Government of Uganda which was a condition to completing the SPAs. While Tullow’s capital gains tax position had been agreed as per the Group’s disclosure in its 2018 Full Year Results, the Ugandan Revenue Authority and the Joint Venture Partners could not agree on the availability of tax relief for the consideration to be paid by Total and CNOOC as buyers” (…) “Tullow will now initiate a new sales process to reduce its 33.33% Operated stake in the Lake Albert project which has over 1.5 billion barrels of discovered recoverable resources and is expected to produce over 230,000 bopd at peak production” (Tullow Oil plc – ‘Termination of farm-down agreement with Total and CNOOC in Uganda’ 29.08.2019).

This deal fell through because the companies didn’t want to compensate each other for back-taxes or the taxation of the possible profits to the Government of Uganda. Something that was approved upon the Joint Venture Agreement in August 2016 with Total and CNOOC.

This shows how hard it is start-up and the issues by operating in Uganda. Even Tullow Oil plc is trying to figure this one out. It was only in January 2017, when the Total was supposed to buy the biggest part of operated stake of 21,5% from Tullow. Surely, with the announcement in 2018 and now in 2019. This has all backfired and stopped, because URA and the companies couldn’t agree on their fees.

That dispute is the one that was interconnected with the “Presidential Handshake” of 2017. As the 6 billions shillings was doled around to civil servants and high ranking officials, who secure the capital tax gain from Heritage/Tullow Oil, which was awarded in February 2015.

Therefore, Tullow has to now find new buyers for their USD $167m stake in the Lake Albert Basin. This would be the payment of the Capital Gain Taxes (Awarded $157 Million) to the Uganda Revenue Authority. Apparently, Total and CNOOC didn’t want to do that apparently.

So from August 2016 to August 2019, the three companies and URA couldn’t come to an agreement on Capital Tax Gain, which Tullow owe URA after losing their case in February 2015. This shows, that the big victory of the state in this matter. Is actually making it harder to find someone who can afford or see it feasible to drill for oil in Area 1 and Area 2.

This is how it seems and the two other companies didn’t want to pay for what Tullow did before them. Peace.

Burundi: Mouvement pour la Solidarite et la Democratie (MSD) – Communique (27.08.2019)

Uganda Police Force: Police Investigates Minister’s Death Treats (26.08.2019)

UN Commission on Human Rights in South Sudan: Localization of conflict and unaddressed community grievances serve as barriers to sustainable peace (23.08.2019)

The Commissioners will hold a press conference on Friday, 23 August 2019, at 1100 hrs in the UNMISS Tomping Base in Juba.

JUBA, South Sudan, August 23, 2019 – Members of the UN Commission on Human Rights in South Sudan began their seventh field mission to South Sudan, Uganda, Ethiopia, and Kenya earlier this week. The mission, currently underway, is taking place from 19 to 26 August 2019.

In Juba, Bentiu, and Yei (South Sudan), the Commissioners met with UN representatives, international organizations, and community members comprising religious leaders and civil society, including women’s groups, recent returnees, and internally displaced persons.

“We are deeply concerned that, despite overall armed conflict having waned considerably since the signing of the Revitalized Peace Agreement, little progress has been made to adhere to the terms of the agreement,” said Commission Chair Yasmin Sooka. “Civilians with whom we spoke still raised numerous concerns that they feel are barriers to sustainable peace,” she added.

Intercommunal violence premised on cattle-raiding has recently spiked in South Sudan, including in Bahr al-Ghazal. During their visit, the Commissioners listened to South Sudanese women, men, and children express numerous concerns including localization of conflict linked to land, resources, and cattle, continued impunity for sexual and gender-based violence, delays and inefficiencies in implementing the Revitalized Peace Agreement of September 2018 , deteriorating living conditions for those internally displaced, the securitization of the state and continued shrinking space for civic engagement, frustration with the functioning of the judiciary, and the absence of accountability mechanisms including establishment of the Hybrid Court, among others.

“Despite the numerous challenges we heard, we were encouraged by the fact that committees composed of military and civil actors have been formed to improve civil-military relations and support local justice and reconciliation in Yei River State, where civilians could raise dispute resolutions,” said Commissioner Andrew Clapham. “Such mechanisms that facilitate communication between armed actors and civilians could be replicated in other locations where violent conflict and violations have been witnessed in the country,” he noted.

Impunity for conflict-related sexual violence and sexual and gender-based crimes in South Sudan also remains at an all-time high, while survivors of sexual violence still have limited access to redress. In Bentiu, the Commission heard testimonies of sexual violence from women who are waiting to share their stories with an accountability mechanism. “The lack of progress in establishing transitional justice mechanisms, including the Hybrid Court, the commission for truth, reconciliation, and healing and the compensation and reparation authority, which are to be complemented by customary and other community-centred mechanisms, is delaying accountability and reparation for these and other crimes,” said Commission member Barney Afako. “So long as the voices of victims and survivors are not empowered, and these mechanisms not put in place, it is highly unlikely that South Sudanese women, men, girls, and boys will be able to witness a lasting peace,” he added.

In closing, the Commission stressed the importance of overcoming delays regarding the Revitalized Peace Agreement, and encouraged the positive work being carried out by the National Constitutional Amendment Committee.

The Commissioners will hold a press conference on Friday, 23 August 2019, at 1100 hrs in the UNMISS Tomping Base in Juba.

From 25 to 29 August 2019, the Commissioners will separately visit Uganda, Ethiopia, and Kenya, where they will engage with refugees who have been recently displaced from South Sudan. In Ethiopia, they will hold meetings with African Union leaders, the Intergovernmental Authority on Development (IGAD), senior UN officials, as well as other members of the international community.

The UN Commission on Human Rights in South Sudan is an independent body mandated by the UN Human Rights Council to, among other things; determine and report the facts and circumstances of, collect and preserve evidence of, and clarify responsibility for alleged gross violations and abuses of human rights and related crimes, including sexual and gender-based violence and ethnic violence, with a view to ending impunity and providing accountability. The Commission will present an oral update on the human rights situation in South Sudan to the Human Rights Council on 16 September 2019 and a comprehensive written report in March 2020.

Uganda Telecom Limited: Influence Peddling, Abuse of Office and Fraud in Relations to Administration of Uganda Telecom Limited by Honourable Evelyn Anite (09.08.2019)

Statement attributable to the Spokesperson for the Secretary-General on the signing of a Memorandum of Understanding between Rwanda and Uganda (23.08.2019)

The Secretary-General recognizes the important role of Presidents João Lourenço of Angola and Felix Tshisekedi of the Democratic Republic of the Congo in facilitating the signing of the Memorandum.

NEW YORK, United States of America, August 23, 2019 – The Secretary-General welcomes the signing on 21 August 2019 in Luanda, Angola, of a Memorandum of Understanding between Presidents Yoweri Museveni of Uganda and Paul Kagame of Rwanda, with the aim of normalising bilateral relations between the two countries.

He encourages the parties to implement the agreement in good faith, with a view to restoring friendly relations and cooperation between the two neighbouring states, in the interest of peace, stability and sustainable development in the region.

The Secretary-General recognizes the important role of Presidents João Lourenço of Angola and Felix Tshisekedi of the Democratic Republic of the Congo in facilitating the signing of the Memorandum.

The Secretary-General stands ready to support the momentum generated through this and other initiatives to advance peace, cooperation and integration in the region.

Communique of the IGAD Council of Ministers on the Consultative Meeting of the Parties to the R-ACRSS (21.08.2019)

Burundi: Declaration du Parti CNL/Congress National pour la Liberte sur la Situation Politico Securtaire au Burundi (21.08.2019)