U.S. Treasury fines ExxonMobile meager $2m for violation of the Russian-Ukraine Sanctions!

Some days you wonder if the connections of the New York isn’t to strong for the moment. When the joys of their loot and their power is not making them lose their senses. The common sense is clearly gone, as the company formerly run by Rex Tillerson, the now State Secretary of United States. Who couldn’t care less about the relationship between the United States of America and the Russian Federation. As the illegal and not internationally accepted annexation of the Crimea from the Republic of Ukraine happen. Still, even as that was happening the former Standard Oil baby ExxonMobile decided to be a trading partner and create opportunities in the vast resources in Russia and Russian territories. Now today they we’re fined, but that was a little slap on their wrist, as the real wealth inside the deal shows how much they really could have earned. Therefore, the crime and the penalty doesn’t fit. The Company gets away with a heist, but has to pay small interests for doing so. Now they are waiting for the possible time for their giant payoff and this will be simple write-off in their results in the next quarterly estimates. This sort of fine isn’t that serious, as it can easily chop it off and continue to eat.

First we will look into what the Wall Street Journal wrote about the deal between Russia and ExxonMobile, the second and third are about today’s fine and you see why it insulting fine to give.

“A U.S. official said the new penalties would affect Exxon’s current drilling in the icy Kara Sea with its Kremlin-controlled partner, OAO Rosneft, though the extent of the impact was unclear Thursday. No other Western energy company has as much direct exposure to Russia as Exxon, thanks to a $3.2 billion deal giving the company access to a swath of the Arctic larger than Texas that could hold the equivalent of billions of barrels of oil and gas. Officials in Europe, which has extensive trade links to Russia, have insisted that Western nations share the fallout from sanctions against Moscow. Russia has said it would retaliate against additional sanctions with measures of its own, further heightening the risks to companies operating there, legal experts said. Exxon is “assessing the sanctions,” said Alan Jeffers, a company spokesman. “It’s our policy to comply with all laws.” (Gilbert, 2014)

“ExxonMobil Corporation Assessed a Penalty for Violating the Ukraine-Related Sanctions Regulations: ExxonMobil Corp., oflrving, Texas, including its U.S. subsidiaries ExxonMobil Development Company and ExxonMobil Oil Corp. (collectively, “ExxonMobil”), has been assessed a civil monetary penalty of $2,000,000 for violations of the Ukraine-Related Sanctions Regulations, 31 C.F.R. part 589 (Ukraine-Related Sanctions Regulations). Between on or about May 14, 2014 and on or about May 23, 2014, ExxonMobil violated§ 589.201 of the Ukraine Related Sanctions Regulations when the presidents of its U.S. subsidiaries dealt in services of an individual whose property and interests in property were blocked, namely, by signing eight legal documents related to oil and gas projects in Russia with Igor Sechin, the President of Rosneft OAO, 1 and an individual identified on OF AC’s List of Specially Designated Nationals and Blocked Persons (the “SDN List”) (referred to hereinafter as an “SDN”)” (U.S. Treasury, 20.07.2017).

“OF AC considered the following to be aggravating factors: (1) ExxonMobil demonstrated reckless disregard for U.S. sanctions requirements when it failed to consider warning signs associated with dealing in the blocked services of an SDN; (2) ExxonMobil’s senior-most executives knew of Sechin’ s status as an SDN when they dealt in the blocked services of Sechin; (3) ExxonMobil caused significant harm to the Ukraine-related sanctions program objectives by engaging the services of an SDN designated on the basis that he is an official of the Government of the Russian Federation contributing to the crisis in Ukraine; and (4) ExxonMobil is a sophisticated and experienced oil and gas company that has global operations and routinely deals in goods, services, and technology subject to U.S economic sanctions and U.S. export controls” (U.S. Treasury, 20.07.2017).

So it’s okay, the company ExxonMobile was fined for intervening in a Republic and inside a state where there was clear sanctions against trade. That was something Rex Tillerson knew and also the Russian counterparts, but ExxonMobile didn’t care. They just wanted the profits and earn on the fragile arctic and also into areas like the annexed Crimea. This shows the intent of profiting while being under sanctions and not respecting the laws of the United States and being a registered company residing in the United States.

This show the ethical backdrop of the New York Gang and the Administration of today, we cannot know how much the company earned before the stop between Rosneft and ExxonMobile. The suspension of activity between them. What we can imagine is that it was vastly more than the little they paid for breaking the law. Peace.

Reference:

Gilbert, Daniel – ‘Sanctions Over Ukraine Put Exxon at Risk’ (11.09.2014) – Wall Street Journal

Cry havoc: Kanye creates more fuzz than actual news!

This are one of these days where I see more articles about the meeting between President-Elect Donald J. Trump at the Trump Tower with the rapper Kanye West. What should be news that more and more people connected with either Big-Oil like the Standard Oil babies ExxonMobile, grand wizards of the economy, hedge fund infused billionaires and others are packing their offices to find ways of ravaging the faucets and gooses, while the workers are tripping and wonder what they voted in.

The American People been duped by a sales-man with such vigour and bravado that he claimed Hillary Clinton’s connection to the big business and Wall Street; while him two seconds and near the swearing-in are handpicking more Goldman Sachs officials than fish in a barrel.

With this in mind the visit of Kanye West at the Trump Tower is just a suggestion, from the man in 2011 on ‘Watch the Throne’ LP on the song ‘New Day’ wrote:

“And I’ll never let my son have an ego

He’ll be nice to everyone, wherever we go

I mean I might even make him be Republican

So everybody know he love white people”

Therefore, the truth of the matter is that this is not really a thing. If so, this is made-up to undermine the key aspects in the wind. The Goldman, the swamp swirling around the nest and dropping loads of golden eggs for the big business to use.

That the cabinet either filled with the ones that was to be cleared out of Washington D.C. or the populist agenda with men like Jeff Sessions and Stephen Bannon whose despicable worldview can destroy any kind of men has belief in decency left in the American Experience. Therefore, the scenery of this Alt-Right, White Supremacist in power should not overshadow the greedy-guts that are nominees for seriously grand opportunities.

Where bankers, where big industrialist and self-loathing interests combined with the infused tolerance for business over policy can conquer the republic’s works. As the lax-tax and corporate loopholes will be covered into a level where it isn’t a few bigger whole like a Swiss-Cheese, instead more like common water leaks like from pipes connected to the faucets.

The faucet is the sales-man on the top, the President-Elect Trump that gives all the donors of the Republican Party a feast, also the men and woman who can offer something in return; so the nomination is a future-buy in for a coming return on investment. The portfolio is more of government funds and taxes together with the estimated earnings on foreign affairs as the kickbacks through the political funded monies can return to the bankers and the industries that offered their nominees.

So we shouldn’t worry about Kanye is hanging out with the President-Elect, when the view of the man and woman handpicked to secure the coffers, misuse the immigrants as scarecrows for their economic policies to enrich themselves and their top 1 %, while leaving leaves and empty promises behind.

Therefore, American people be proud of you and yours have created! This is what you will become and what that is ahead, the President-Elect is surely going to have a blast and you as the citizen of the grand Republic going to left behind with the bill. Pay it either directly or to the rich-men is coffers or as a benefit for what you already had.

Certainly these noblemen who is handpicked by the Trump isn’t going to let you off the hook easily, they are in to cash-in or they are nominated to departments they back-in the day didn’t believe in like Ben Carson or Rick Perry. However, when they get a government position it’s all smiles and glory, even if they got no clue about the organization or its mission. Because that is not needed, because the President-Elect does not know what he is entitled to do either.

We can grin and wonder why Trump meet with Kanye, other than a publicity stunt of some kind, as the Republican blasted Obama for meeting Common at the White House, but no one is screaming vicious when Trump met with Kanye, since that is just so COOL!

Well, the reality is that the Republican party can stick it, for the pain and suffering they will give their own in the will of little government, little tax and massive army, the taxation policies as well as the prospects of Alt-Right policies to make enemies out of neighbours who are citizens as much the next one. Certainly, the Trump administration got work ahead, not only with themselves, but also with the Republic it will run. Peace.

A look into Donald Trump’s possible nominee for Secretary of State: Rex Tillerson, what has he said and done?

“Whether I choose him or not for “State”- Rex Tillerson, the Chairman & CEO of ExxonMobil, is a world class player and dealmaker. Stay tuned!” – Donald J. Trump on Twitter 11.12.2016.

We have to scrutinize and look over the men that possibly will be the most powerful men and woman in the Trump Administration, as they should not be forgotten what they did in the past. Especially when Trump himself has branded Obama Administration as ‘hopeless’ and ‘bad’; therefore his Administration should be better, though by the men and woman who is already picked his stature for military and rich-men is staggering, more than the qualifications for each role in Government. That is what is worrying. This time around it is the current Chairman of ExxonMobile, a negotiator and deal-maker for the grand-oil empire from Texas, the Rex Tillerson who is connected in Venezuela, Russia and Kazakhstan. He is the next in line for the possible task of Secretary of State!

“If you ask the average person on the street about U.S. energy and U.S. oil in particular, our situation, most Americans would say, ‘Oh, we’re energy poor; we don’t have enough oil; we don’t have enough natural gas.’” – Rex Tillerman

What he even wished to happen inside the US in the midst of the Obama Administration:

“Q: President Obama has outlined a plan to cut oil imports by one-third over the next 10 years. Is this feasible?

A: We expect gasoline demand in the U.S. to decline about 17% over the next 20 years. And that’s a function of both efficiency standards that have been put in place for automobiles, but also an ongoing penetration of hybrid and hybrid-electric vehicles. There’s going to be a natural decline in demand for motor fuels from that. That will be partially offset by increasing demand for heavy-duty fuels like diesel. That, along with the penetration of bio fuels, is going to result in a mitigation of imports. Whether we eliminate a third of the imports is hard to say. Another piece of our success will rest on whether the U.S. government decides to make available the lands that it controls, because 60% of the remaining oil resource in the U.S. is on federal lands and 40% of the remaining gas resource. It’s up to the federal government to allow the industry to explore those lands and develop those resources that could have a big impact on supply in the future” (Bartiromo, 2011).

Secretary of State does: “The Secretary of State, appointed by the President with the advice and consent of the Senate, is the President’s chief foreign affairs adviser. The Secretary carries out the President’s foreign policies through the State Department, which includes the Foreign Service, Civil Service, and U.S. Agency for International Development” (Secretary of State, link: http://www.state.gov/secretary/).

So as the foreign affairs job has lots of responsibility to be the face of the nation when the President self cannot travel or negotiate, even do diplomatic missions to keep up with alliances and treaties that the US Government have or currently in the works. So the position should be done by somebody with tact and courtesy for the will of the US Government and the foreign dignitaries so that the person doesn’t offend either party while working for the common good. That is something that the possible former ExxonMobile chairman Tillerson has to do.

Negotiations in Venezuela:

“According to the XM executives, the last significant contact XM had with the BRV or PDVSA was XM Chairman and CEO Rex Tillerson’s May 16 meeting with Ambassador Bernardo Alvarez. During the meeting, Tillerson told Alvarez that XM must have a confidentiality agreement before it could begin negotiations on the remaining migration issues. In addition, he stated book value was not an acceptable basis for compensation for lost value. Finally, Tillerson said XM was looking for a win-win solution but warned that XM was willing to go to arbitration if it had to do so. The executives later mentioned that PDVSA’s stake in the Chalmette refinery was mentioned as a possible component in a compensation package. They did not specify who raised the topic” (…) “When asked if other IOCs had entered into negotiations with the BRV, XM executives replied they did not believe any companies had entered into meaningful negotiations. They stated they met with Total executives on May 22 to discuss the general situation. The Total executives stated their company has also rejected book value as a basis for compensation for lost value. In addition, they told the XM executives they believe the Sincor strategic association will be hit with a large tax assessment in the near future. Seniat, the BRV tax authority, presented CP and Chevron earlier this month with tax bills for close to USD 550 million for back taxes for the Petrozuata and Hamaca strategic associations for the years 2003 to 2005” (WikiLeaks, 2007).

In 2008 – Trading oil in Kazakstan:

“(Note: The one exception was a threat by President Nazarbayev in a December meeting with Tillerson’s deputy to use the subsoil legislation. Nazarbayev, however, reverted to his previous public line when he reassured the Ambassador privately the next day that the legislation would not/not be used against any existing contract. End Note.) In the end, both ExxonMobil and ConocoPhilips confirmed that the GOK used tough, but legitimate business pressures to pursue their case” (…) “ExxonMobil told us that CEO Rex Tillerson had decided that Exxon was going to hold the line on this issue. However, all our sources indidated that Tillerson was subjected to very strong pressure in the final negotiations, both by the other CEOs and by the Kazakhstani side. According to our in-country ExxonMobil contact (who was not in the meetings but who was extensively debriefed about them), it was the lure of future business in Kazakhstan that eventually led Tillerson to reverse course, and to agree to a “below market price” figure of $1.8 billion as the valuation of KMG’s increased share. (Note: Determining the “market price” for this share is essentially impossible, as different financial models will yield wildly varying results depending on the assumptions used. That said, all parties involved agree that $1.8 billion is a “below market price,” even if they can not tell you how much below market. End Note.)” (WikiLeaks, 2008). In 2011: “0100 Kazakh President Nursultan Nazarbayev meets Rex Tillerson, the CEO of ExxonMobile corporation, and Dhimitrios Khristofias, the  president of Cyprus, within the framework of his visit to New York to  attend 66th session of the UN General Assembly. Video shows meetings;  Rex Tillerson and Dhimitrios Khristofias, speaking to camera” (WikiLeaks, 2011).

“Experience tells us that a good foundation is critical for success in the Arctic and elsewhere. ExxonMobil’s Sakhalin-1 project with Rosneft is an example where we have put this experience to work.” – Rex Tillerson

On Russia:

“Tillerson said he valued the efforts of the Russian government to improve the tax regime and that it would have a positive effect on Russian and foreign investors.The moves will help expand cooperation in the complex situation in Russia, he said. Tillerson said he was encouraged to see Russia move to create a competitive environment, taking into account the experiences of other tax regimes in other countries” (WikiLeaks, 2011). “Prime Minister Vladimir Putin yesterday put the total of direct  investment in joint projects by Rosneft and ExxonMobil at 200-300  billion dollars, but “if we are talking about infrastructure, the construction of the necessary buildings, and surface facilities, the  investment could reach 500 billion dollars”. However, ExxonMobil expects  its agreement with Rosneft to encourage the Russian authorities to ease the tax regime for the industry. “Such steps will help the government to  expand cooperation in the difficult situation that is taking shape in  Russia,” the head of ExxonMobil, Rex Tillerson, explained” (WikiLeaks, 2011).

On Fracking:

“Exxon CEO Rex Tillerson speaking at a January 2010 congressional hearing concerning the $41 billion merger of Exxon with XTO Energy (one of the worlda**s biggest natural gas drilling companies), said he could support revealing toxic frack mixes. He added that, by combining the hydraulic fracturing and horizontal drilling processes a**we can now find and produce unconventional natural gas supplies miles below the surface in a safe, efficient and environmentally responsible manner.a** Exxon has threatened to nix its XTO acquisition if Congress makes fracking a**illegal or commercially impractical.a**” (WikiLeaks, 2010).

Article about Tillerson faith in Global Warming:

“They’re clearly cognizant of global warming – they employ some of the world’s best scientists, after all, and they’re bidding on all those oil leases made possible by the staggering melt of Arctic ice. And yet they relentlessly search for more hydrocarbons – in early March, Exxon CEO Rex Tillerson told Wall Street analysts that the company plans to spend $37 billion a year through 2016 (about $100 million a day) searching for yet more oil and gas.

There’s not a more reckless man on the planet than Tillerson. Late last month, on the same day the Colorado fires reached their height, he told a New York audience that global warming is real, but dismissed it as an “engineering problem” that has “engineering solutions.” Such as?” (Bill McKibben – ‘Global Warming’s Terrifying New Math’ 09.07.2012).

David Fenton sent an E-Mail titled: “Murdoch climate campaign” on the 19.02.2015 to Clinton Campaign Manager John Podesta that said: “Hi again. Here is the plan to go after WSJ and FOX on climate. I have 500,000 of this pledged if I can raise another million. It’s a real pledge from Graeme Wood in Australia. I sure hope something like this can happen it’s long overdue. Thanks again, David”. This E-Mail had an attachment where this we’re said:

“1)       A climate science ad series (surprisingly affordable) on the Wall Street Journal’s opinion page, sponsored by a mainstream institution like Columbia University’s Earth Institute or the Union of Concerned Scientists.  These would be unassailably factual and scientific but also compelling, memorable and clear. They would show the facts the Journal denies — Co2 from fossil fuels traps heat, the earth has warmed, the CEO of EXXON believes it why not this paper? This series would stress consequences for the economy and mainstream support from groups like the World Bank, International Energy Agency, PWC, NAS, the Royal Society, etc. Of course the Journal would attack the series in editorials, which will help it get more attention” (WikiLeaks, 2015).

This here shows some of the stories of the man in the past, Rex Tillerson who has apparently massive faith in fracking and negotiation with Putin for the business he was running ExxonMobile. The WikiLeaks stories are special in themselves, but there other lost tales that needs to show the character of the man.

Like the Kurdistan adventure:

“Exxon Mobil Chief Executive Rex Tillerson refused Tuesday to answer questions about a controversial deal the oil company has signed with the Kurdish government in northern Iraq” (…) “Exxon, (XOM, Fortune 500) which holds big contracts with the Iraqi government to develop oil fields in the southern part of the country, was sharply criticized by Iraqi government ministers last month over the deal. The Iraqis suggested Exxon might be sanctioned over the move, possibly putting their deals in the southern part of the country in jeopardy” (…) “Iraqis in Baghdad are loathe to see oil companies sign separate deals with the semi-autonomous government in the Kurdish north, preferring instead that all deals go though the central government” (Hargreaves, 2011). So the next Secretary of State is ruthless in trade for fortunes that he picked deals with Kurdistan government over the Southern Iraqi Central Government that counters the diplomatic way that the governments do with Iraq. So Rex Tillerman could surely do the same in charge of the State Department under the Trump Administration.

Here is a story in the inner workings in Chad:

“There was Exxon’s meddling in a 2006 standoff between Idriss Déby, the authoritarian leader of Chad — a Central African country with rich oil reserves — and Paul Wolfowitz, then the leader of the World Bank. Déby wanted weapons to fight rebels supported by nearby Sudan, but good-governance clauses in loans Chad had received from the World Bank restricted the country’s ability to purchase arms. Wolfowitz was ready to freeze some of Sudan’s bank accounts, prompting Déby to threaten to effectively kick Exxon out of Chad. That could have cost the company billions of dollars. So Exxon lobbied the U.S. ambassador to Chad to fix the problem, which led to Déby getting his weapons and Exxon its oil” (…) “By now ExxonMobil had made its own choice clear,” Coll writes. “It was more interested in the survival of Chad’s oil production than it was in the World Bank’s experiment in nation building.” (Walsh, 2012). So he would use World Bank loans to trade weapons to make sure that the ExxonMobil get the possibility to the Oil Reserves in Chad. That proves how far the man will go for profit, that the authoritarian leaders needs for arms can be meet, if he get the oil as long as he makes a killing.

Than you have the story of how he worked in Guyana:

“US oil giant ExxonMobil made waves in Guyana last Thursday by announcing it had confirmed a “world-class discovery” of oil offshore. The company said results from its exploration well in the Stabroek block, about 120 miles (193 kilometres) offshore Guyana, found between 800 million and 1.4 billion oil-equivalent barrels” (…) “The waters around Guyana are largely unexplored. According to a Forbes story quoting Exxon CEO Rex Tillerson, the 3-D seismic survey that Exxon conducted in the area was its largest in history — “the equivalent of 1,400 Gulf of Mexico blocks” (…) “In November 2015, Guyana’s government faced accusations that the state didn’t have the capacity to independently monitor ExxonMobil’s compliance with environmental regulations. The worry arose after it was alleged that ExxonMobil was promoting and funding climate change denials” (Abdelwahab, 2016).

So now that he is peculiar connected into the oil developments outside Guyana, as it was profitable for the company without considering the environment of the ocean and the sea as the we’re even paying climate change deniers in Guyana. That the billions of barrel is more important that the effect that oil drilling will have on the nation.

This from the guy that are key part of the former Standard Oil companies that we’re re-merged from Exxon and Mobil Oil Companies, that we’re too powerful in the United States. The US Company now are now so big Multi-National that they can secure the World Bank to fund Chad Government loans so they can buy weapons, and exchange give possible oil fields to the ExxonMobil. If that doesn’t say anything nothing does. This sort of fellow will now run the Secretary of State, not to talk about the Foreign Affairs of the United States. The diplomatic correspondence and according to due procedure of the Trump Administration; that will be interesting as the CEO Tillerman has been focused on profits and not on anything else. We can wonder what will be his Modus Operandi as a Secretary of State, what his policies and foreign affairs chief under Trump. Peace.

Reference:

Abdelwahab, Alex – ‘ExxonMobil’s significant oil find off Guyana leads to questions about the country’s future’ (05.07.2016) link: http://www.caribbeannewsnow.com/headline-ExxonMobil’s-significant-oil-find-off-Guyana-leads-to-questions-about-the-country’s-future-30969.html

Bartiriromo, Maria – ‘ExxonMobil CEO: Open more federal land for oil and gas’ (18.04.2011) link: http://usatoday30.usatoday.com/money/companies/management/bartiromo/2011-04-18-bartiromo-rex-tillerson-exxonmobil.htm

Hargreaves, Steve – ‘Exxon silent on controversial Iraq oil deal’ (06.12.2011) link: http://money.cnn.com/2011/12/06/news/international/Exxon_Iraq_oil_deal/

Walsh, Bryan – ‘Inside the Death Star — Also Known as Exxon’ (01.05.2012) link: http://content.time.com/time/health/article/0,8599,2113546,00.html

Wikileaks –‘KAZAKHSTAN: ALL SIDES SMILING WITH KASHAGAN DEAL’ (18.01.2008) link: https://wikileaks.org/plusd/cables/08ASTANA91_a.html

WikiLeaks – ‘FAJA NEGOTIATIONS: NO NEWS IS BAD NEWS’ (25.05.2007) link: https://wikileaks.org/plusd/cables/07CARACAS1030_a.html

WikiLeaks – ‘KAZAKHSTAN/CYPRUS/UK – Programme summary of Kazakh Khabar TV “Zhanalyqtar” news 1400 gmt 21 Sep 11’ (21.09.2011) link: https://wikileaks.org/gifiles/docs/71/711052_kazakhstan-cyprus-uk-programme-summary-of-kazakh-khabar-tv.html

WikiLeaks – ‘RUSSIA/FORMER SOVIET UNION-Exxonmobil Hails Russian Government Efforts to Improve Tax System’ (31.08.2011) link: https://wikileaks.org/gifiles/docs/25/2574477_russia-former-soviet-union-exxonmobil-hails-russian.html

WikiLeaks – ‘Murdoch climate campaign’ (19.02.2015) link: https://wikileaks.org/podesta-emails/emailid/27241

WikiLeaks – ‘Re: FRACK – W.Va. eyes fluid disclosure; quote from Lachelt’ (09.03.2010) link: https://wikileaks.org/gifiles/docs/38/386876_re-frack-w-va-eyes-fluid-disclosure-quote-from-lachelt-.html

WikiLeaks – ‘RUSSIA/CANADA/MEXICO – Russia’s oil firm signs partnership deal with ExxonMobil’ (02.09.2011) link: https://wikileaks.org/gifiles/docs/70/705223_russia-canada-mexico-russia-s-oil-firm-signs-partnership.html

Press Statement: Buhari visit the Niger Delta and see for yourself (26.06.2016)

Interesting WikiLeaks about Uganda: Bunyoro, Lake Albert & Oil-deals

Here is WikiLeaks which shows quotes from 2007 to 2011 where Bunyoro, Rwenzuru and the security of the oil-rich Western-Uganda. Think that this should be interesting reading – also insights to the situation. Have an awesome time reading!

The Corruption story of Muhwezi and Mukula amd the NRM:

“Many Ugandans were happy to see Muhwezi and Mukula, members of the so-called “mafia”, arrested for corrupt activities” (…)”oo Much or Inefficient Corruption. Kategaya and Musa Ecweru, Minister of State for Relief and Disaster Preparedness, told P/E Chief the core issue was that Muhwezi, Mukula, and Kamugisha took more money than they had been authorized and failed to account for it. Muhwezi had been found “not politically responsible” in a Cabinet white paper follow-up on the Global Fund Investigation report in March. According to the Kategaya and Ecweru, the debate within the Cabinet over Muhwezi’s fate was heated, but that ultimately a majority of ministers rallied behind Muhwezi because they themselves could be implicated for corrupt activities. The President accepted the Cabinet recommendation, but still wanted to find a way to “clip Muhwezi’s wings.” The President decided that the use of the immunization fund for personal gain would provide a strong case against Muhwezi” (…)”Succession Politics. Another possibility, and not excluded by other theories, was that the arrests were an attempt by President Museveni to remove potential successors. This includes both Jim Muhwezi and First Lady Janet Museveni. Both have presidential ambitions and both profited beyond Museveni’s expectations from the embezzlement. Muhwezi’s financial independence, alleged ties to the Forum for Democratic Change’s Kizza Besigye, and the perception that he was advancing his own political ambitions rather than the ruling party’s could have contributed to the decision to arrest him at this time. Several Cabinet members say that Muhwezi, the former Chief of Military Intelligence, has been allowed to get away with corrupt activities because he has files on key political players and the First Family and has threatened to use them” (…)”The NRM-dominated Parliament also selected Muhwezi to head the Parliamentary Group for the Commonwealth Heads of Government Meeting. One Cabinet member told PolChief that there are signs of other politicians rallying to Muhwezi’s side because they fear they could be next in line for an arrest warrant. Ecweru posted Mukula’s bond to demonstrate ethnic solidarity” (…)”The arrests are generating a significant amount of speculation regarding the future of the ruling party and implications for the war on corruption. Many political contacts and other Western diplomats are wondering if Museveni has a clear game plan, desired outcome, or defined roles for the IGG and public prosecutors” (WikiLeaks, 29.05.2007).

Ugandan Boarder Tension:

“Museveni and his Congolese counterpart Joseph Kabila met in Tanzania to discuss border issues after Congolese military units moved a border demarcation four kilometers into an agreed-upon no-man’s zone on the Ugandan border” (…)”Lt. Gen. David Tinyefuza, Museveni’s security czar, reported to Museveni that Congolese units allegedly erected a border crossing four kilometers on the Ugandan side of the border. However, a team of security officials led by Deputy Director of the External Security Service Emmy Allio, who is from West Nile, determined that the Congolese had not moved the demarcation posts into Uganda, only into the agreed-upon no-man’s zone. In his report to President Museveni and the Minister of Security Amama Mbabazi, Allio argued that the GOU should not “make a big deal” out of the incident. He found that the powerful Governor of Ituri ordered the move, with backing from some elements in Kinshasa, but that Kabila was likely unaware” (WikiLeaks, 21.05.2008).

”According to a joint statement released by the Ministry of Foreign Affairs, Museveni and Kabila “noted with satisfaction” that progress had been made in the border demarcation process. They pointed to the Fifth Session of the Joint Permanent Commission in Kampala December 12-15, 2007, the Joint Border Remarking Committee in Bunia and Entebbe, and other bilateral engagement on the issue as evidence that efforts to find a diplomatic solution to the border question were ongoing” (…)”Museveni and Kabila agreed to accelerate the co-administration of the Rukawanzi Island as the demarcation process takes place. Situated on Lake Albert, Rukawanzi Island was at the center of the August 2007 border flare-up that led to the Ngurdoto-Tanzania Agreement. (Note: Congolese soldiers killed a British Heritage Oil worker in August 2007 claiming that the oil barge had strayed into Congolese waters (ref A). End note.) The prospect of oil exploration on Lake Albert, which is dissected by the Ugandan-Congolese border, has further complicated the demarcation process” (WikiLeaks, 21.05.2008).

The Oil-deals and Boarder Tension:

“The most recent border tensions comes in the wake of Kinshasa’s decision to revoke an oil exploration concession to a neighboring block in eastern Congo’s oil-rich region that it had granted to Tullow Oil and Heritage, two of four oil companies operating in western Uganda. The Congolese government awarded the tender to South Africa’s state oil company PetroSA, claiming that Tullow and Heritage violated Congolese territorial waters on Lake Albert (refs A and B), (WikiLeaks, 21.05.2008).

Museveni’s Plan to “Ring-Fence” Bunyoro:

“An internal July 15 memo from Ugandan President Museveni has deepened the ethnic divide between groups living atop newfound oil reserves in Uganda’s Western Region.  The memo, which was leaked to the press on August 2, instructs the Minister for Presidential Affairs to consider restricting key elected offices – including parliamentary seats – in what was once the Bunyoro Kingdom in Western Uganda to ethnic Banyoro only.  The memo also recommends preferential land ownership rights for ethnic Banyoro for the next twenty years.  Museveni’s memo may have been designed to appease, or perhaps distract, Banyoro leaders angered by long-standing land disputes and the government’s continued refusal to reveal plans for oil revenue sharing (reftel)” (…)”Museveni has not backed away from the idea of investing specific ethnic groups with special electoral privileges in Western Uganda, and several members of his Cabinet who hail from Bunyoro have ratcheted up pressure on Museveni to move forward with his proposal. Museveni’s apparent willingness to consider rewarding one ethnic constituency by disenfranchising many others reinforces concerns about his re-election strategy for 2011 and Uganda’s commitment to the transparent management of impending oil revenues” Sampson/WikiLeaks, 19.08.2009).

”Two other individuals of note reportedly also spoke at the August 15 Bunyoro Symposium: the Bunyoro Kingdom’s spokesman Henry Ford Miriima and Presidential Advisor on Land Issues Kasirivu Atwooki. In recent days Miriima has advocated for taking President Museveni’s “ring-fencing” idea even further, arguing that non-Banyoro living in Bunyoro should assimilate into Banyoro culture and adopt the Banyoro language of Runyoro” (Sampson/WikiLeaks, 19.08. 2009).

Tension because of Museveni’s plan to “Ring-Fence” Bunyoro:

“Tensions between the Banyoro and “immigrant” populations in Bunyoro have been simmering for some time. President Museveni’s memo significantly heightened these tensions by elevating them to national prominence. Explanations of why Museveni seized on the Bunyoro question now, after more than two decades in power, focus on two topics: elections and oil. Using Uganda’s 2002 census as a guide, one local news magazine noted that the Banyoro are in fact not marginalized and that ethnic Banyoro hold 10 of the 14 parliamentary seats from the four districts that make up the Bunyoro Kingdom. Although Banyoro appear to be the largest ethnic group in these districts, they do not hold a majority. Restricting elected offices to only ethnic Banyoro would therefore disenfranchise a majority of the population resident in these districts” (Sampson/WikiLeaks, 19.08. 2009)

“Captain” Mike Mukula, disgraced former Ugandan Health Minister and current National Resistance Movement (NRM) vice-chairman for eastern Uganda, warned that the 2011 presidential elections will be worse than the deeply flawed 2006 presidential contest. Mukula, whose political reputation was battered by the 2006 Global Alliance for Vaccines and Immunization (GAVI) scandal, said the September 10-12 riots provided a brief preview of one potential election scenario. He also said President Museveni’s popularity was decreasing within the NRM, and speculated that Museveni may be interested in setting up his son, Muhoozi, as dauphin. Mukula said Museveni ultimately listens to only two countries – the U.S. and the U.K. – and urged the U.S. to pressure Museveni to reinstate presidential term limits. Mukula himself, however, hopes to run for president in 2016″ (…)”Mukula lost his Cabinet post in 2006 and was briefly imprisoned in 2007 after being accused of diverting USD 1.5 million from the Global Alliance for Vaccines and Immunization (GAVI) program to NRM coffers. Describing himself as Museveni’s “fall guy,” Mukula blamed his involvement in the GAVI scandal on Museveni’s need to placate international donors concerned about corruption, and his own rising popularity as evidenced by a newspaper poll that listed Mukula as more popular with the NRM faithful than the President” (…)”Now the NRM’s vice-chairman for eastern Uganda and a key member of Museveni’s re-election campaign, Mukula complained that there is no separation between the NRM and Ugandan state institutions. He called the military Uganda’s “fourth estate” and said Museveni regards the army as his personal political party. Mukula highlighted the complete dominance of Museveni’s Banyankole ethnic group throughout the government, military, and business community, and asserted that the NRM now serves as nothing more than platform for the President, springing to life only during election campaigns” (…)”Bukenya, an ethnic Baganda, as the NRM’s most popular leader. He said Museveni kept Bukenya on as his Vice President to keep tabs on Bukenya’s potential presidential ambitions” (…)”Mukula said the recent political moves made by Museveni – from pandering to ethnic Banyoro along Lake Albert (ref. A), to the recognition of the Rwenzururu Kingdom in southwestern Uganda and the decision to support the minority Banyala’s quest for autonomy from the Buganda Kingdom (ref. B) – were all designed to obtain the two percentage points needed to push Museveni from 49 to 51 percent during the first round of voting in 2011” (…)”Mukula said Museveni was increasingly patterning himself after Robert Mugabe and wants to position his son, Lieutenant Colonel Muhoozi Kainerugaba Museveni, as his eventual successor. Muhoozi returned from the U.S. Army Command and General Staff College in mid-2008 to assume command of the new Special Forces, a still-murky component – or potentially entirely separate unit – of the praetorian Presidential Guard Brigade comprised of all the PGB’s elite, technical, and specialized non-infantry capabilities. Noting that Muhoozi may still be too young to mount a credible presidential bid in 2016, Mukula again volunteered that he had presidential ambitions of his own for 2016” (Sampson/WikiLeaks, 23.09.2009).

The Oil-deals between ExxonMobile/ENI/Tullow/Heritage Oil Company with corruption and deals made with the Ugandan Government:

“A December 17 report by the External Security Organization (ESO), which Intelligence Coordinator General David Tinyefuza allegedly forwarded to President Museveni, says Security Minister Amama Mbabazi is “eyeing” a $200 million commission for securing a deal between Heritage Oil and the Italian firm ENI” (…)”confidential Ugandan intelligence report on negotiations between Heritage Oil and the Italian oil giant ENI (see attached document and reftel). Tullow has previously expressed concern that ENI is using illicit payments to Ugandan officials to obtain government authorization for purchasing Heritage and depriving Tullow of oil holdings in Lake Albert” (…)”The report says western governments – including the U.S., U.K., Sweden, and France – oppose the opaque ENI deal, that Tullow hopes to sell 50% of its Ugandan holdings to ExxonMobil, and that ENI offered Ugandan officials facilitating an ENI-Heritage agreement a $200 million “commission” (…)”The report claims that Mbabazi is using a front company belonging to the European owner of Asante Oil, and that ENI representatives distributed “fat envelopes” to a number of visitors – including Energy Ministry officials, representatives from the Office of the President, journalists, and Bunyoro Kingdom officers – while installed at a safari lodge in Murchison Falls National Park close to where drilling has occurred. NOTE: EconOff witnessed ENI’s presence at this lodge during a trip to Murchison in early December. END NOTE. Much of the report highlights ENI’s Libyan ties and accuses Qadhafi of funneling money to the Bunyoro and Buganda Kingdoms to destabilize the Museveni regime. The final two sections of the report purport to “show how ENI corrupts a country’s leadership and forces them to take unpopular selfish policies,” and the “dangers” of an ENI/Libya deal” (Sampson/WikiLeaks, 13.01.2010).

Continuation of Mbabazi and Government involvement in Oil-Deals:

“We believe Mbabazi is positioning himself for a significant payoff, but the security report is undermined somewhat by Tullow’s apparent involvement in its drafting. In December, ExxonMobil said it lacked concrete evidence that its Ugandan interests have been harmed, but noted that ENI’s involvement has had a negative impact. If the Heritage-ENI sale proceeds unchanged, it will significantly reduce the value of Tullow’s Uganda holdings, zap ExxonMobil’s interest, and put Uganda on the road to rampant oil sector corruption” (Samson(WikiLeaks, 13.01.2010)

“President Yoweri Museveni has ordered the freeze in order to protect the rights of locals, whose tenure continues to be threatened by the influx of business people interested in the oil-rich land, Stephen Birahwa, a lawmaker representing Bulisa told Dow Jones Newswires” (WikiLeaks, 29.05.2011).

Peace!

Links:

Richards/WikiLeaks – [OS] UGANDA/ENERGY – Uganda imposes oil land ban – FRANCE/UK/CHINA (06.06.2011), WikiLeaks, Link: https://wikileaks.org/gifiles/docs/31/3161601_-os-uganda-energy-uganda-imposes-oil-land-ban-france-uk.html

 

Sampson, Aaron & WikiLeaks – MUSEVENI MIXES TOXIC BREW OF ETHNICITY AND OIL IN WESTERN UGANDA (19.08.2009), WikiLeaks, Link:

https://wikileaks.org/plusd/cables/09KAMPALA946_a.html

 

Sampson, Aaron & WikiLeaks – UGANDA: NATIONAL RESISTANCE MOVEMENT INSIDER SEES TROUBLE AHEAD (23.09.2009), WikiLeaks, Link: https://wikileaks.org/plusd/cables/09KAMPALA1096_a.html

 

Sampson, Aaron & WikiLeaks – UGANDA: SECURITY REPORT DETAILS OIL SECTOR CORRUPTION (13.01.2010), WikiLeaks, Link: https://wikileaks.org/plusd/cables/10KAMPALA19_a.html

 

WikiLeaks – UGANDA: MUSEVENI AND KABILA DEFUSE BORDER TENSION (21.05.2008), Link:https://wikileaks.org/plusd/cables/08KAMPALA674_a.html

 

WikiLeaks – UGANDA: CORRUPTION SCANDAL’S POLITICAL RAMIFICATIONS (29.05.2007) Link:https://wikileaks.org/plusd/cables/07KAMPALA909_a.html