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The Uganda Budget Framework Paper FY2018/19 for Energy and Mineral Development is saying that the External Financing is the key for this Sector – Period!

The Budget Framework Paper for Financial Year of 2018/2019 for the Ministry of Energy and Mineral Development is really revealing how the financing of the sector is and how the state is involved with the manner. Also, how low-key the main factors are and lacking transparency is hitting the Energy Sector of Uganda. Not that is surprising, since the agreements, the licenses and the tenders are usually kept behind closed doors.

However, the main part of the Framework Paper is evident of the issues at hand:

The indicative budget ceilings for the Ministry of Energy and Mineral Development have been rationalised in line with the sector priorities and national priorities as communicated in the Budget Call Circular and in the Presidential Directives. The ceilings for Vote 017 for the FY 2018/19 are as follows: Wage Recurrent is UGX 4.23Bn; Non-Wage Recurrent is UGX 74,04Bn; GoU Development is UGX 307,84Bn and the Development Partner contribution is UGX 1,608.41Bn. Under Vote 123 ceiling is UGX 81.98Bn is for the GoU Domestic Development and UGX594.00Bn is from external financing” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018).

The building of vital infrastructure, the refinery, the pipelines and energy production facilities are all dependent on funding from abroad. If it is grants, loans or paid-in-full agreements done in secrecy. Because, there are more than the shadows of this budget framework paper. It is saying a lot and the votes for the future is showing the future too. That the Ugandan economy is prospering, as the budget are needing all funding from afar to be able to build needed infrastructure. Also, needs the grants for the Rural Electrification, the ones who the state has even borrowed to do.

Therefore, this Budget Framework Paper is showing the troubles ahead. This isn’t voting for better economy, know this is dependency and also proving how much the donors and partners are involved in making sure the economy gets addicted to it.

When it comes to the refinery, the details are clearly still in the wind: “The process of selecting of the Lead Investor is still progressing and the negotiations are ongoing between Government and the selected investor. The process is expected to be completed in FY 2017/2018. There after FEED and ESIA for refinery development will be undertaken with the Lead Investor on board” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018). So the selecting of it is not finalized, well, for some thought Russians had secured agreement and the reason for Museveni to visit Moscow. Clearly, that ship has sailed, we can wonder if Total or any other company would do this. As Total has the biggest chairs of licenses in the Lake Albertine Basin. Time will tell, but another proof of lack of transparency, when the Ministry has to write this.

Procurement Bottlenecks including lengthy bidding processes that require no-objections from the external financiers at each stage of execution. There is need for PPDA to revise guidelines for procurements relating to flagship projects. In addition, the following measures need to be considered: financing agreements are signed, project is almost ready to kick off. PPDA should reduce the administrative review timelines that sometimes stall progress” (Energy and Mineral Development, Budget Framework Paper FY 2018/19, 2018).

This here is initially following the guidelines of the First Amendment of the 1995 Constitution of 2017, the Land Amendment that the National Resistance Movement put forward before the Age Limit. That would fit the narrative of the Ministry and their wishes. It is like reading the same idea, to give more power to the state and able to land issues quickly.

What we can learn, also and which is important, these developments, these infrastructures projects couldn’t have been built if it wasn’t for external loans, externals grants or direct aid, if not on the license fees and the parts that is taxed. However, the grand amount and the majority of the projects needs the external funding.

This is not surprising, it is to be expected because Museveni doesn’t want to use his money. He want to spend other people’s money and also the money of the future. To benefit him today, that is why the deals are done in the secrecy…. We don’t know the reasons and the value of the licenses, the ones who is to build the refinery, even the grand agreement between the Corporations who will build the Pipeline. We know that certain companies has failed to build the dams and used bad material, but that is because of the Chinese Contractors has saved money, while being paid-in-full.

President Museveni blessed that deal and got scraps back. Time will tell, but this isn’t a good look. Not because I want it to be bad, but because the money says so. Peace.

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Opinion: President Museveni has given up on the UPE, should the public do the same?

St. Kitzo Primary School, Kabarole

President Yoweri Museveni has implored parents who are financially sound to give their children a better education to guarantee a better future even it means taking them to Private schools” (NTV Uganda, 04.03.2018).

The pledges of yesterday is losing value for President Yoweri Kaguta Museveni, the process and the service delivery doesn’t matter, if it ever did. The Universal Primary Education was one of the brilliant moves he did and also got much more donor funding in the beginning of his Presidency. He introduced UPE in January 1997, as the time went the Government of Uganda invested more into the schools. As the Overseas Development Institute in February 2006, which stated: “The UPE programme has required a significant increase in public expenditure devoted to primary education. Total education expenditure increased from 2.1% GDP in 1995 to 4.8% of GDP in 2000, while the share of the education sector in the national budget increased from 13.7% in 1990 to 24.7% in 1998” (ODI – Policy Brief 10, Feb 2006). So the DFID sponsored brief are really explaining how the National Resistance Movement and President Museveni really used funds into the schools to make it happen. However, down the line the investments hasn’t continued and the progress of the policy has lost value. Since they have not continued or hold into that standard.

The President clarified that parents should feed their children and those who can’t afford should take their children to Universal Education Schools which he insisted should not charge fees, while the capable ones can pay in private schools or ‘big government schools’. “Universal Education Schools should not charge fees and parents must provide a meal for their children, called ‘entanda’. Government has provided UPE and USE for poor parents and here it is free. Those who can afford can take their children to other government schools and private schools where they pay but no child should be withdrawn from school” he emphasized” (Opio, 2018).

When you hear the man who is the leader, whose been the President since 1986, been there 32 years. Saying if you want to give your kid a good education, send them to private schools. The ones who are poor can send their kids to government schools. Therefore, if you have money, you will care more about the future for your kids. Because we as a state has given up the Universal Primary Schools.

This financial year the state is using 10,87 % of the national budget in 2018/19, that is down 11,37% in 2017/18. Both years are really proving how little it is concerning how it was when the UPE was booming around the millennium. In those years the state used about 20% or more on Education. Meaning the means to build and upgrade schools where there, also for more staff and more equipment was there. This has been forgotten and deemed unnecessary by the state.

Already in 2006, the UBOS Statistical abstract stated this: “However, the education facilities including classrooms, teachers’ houses and libraries have not matched the upsurge in the number of pupils. In 2004, provision of classroom space remained an enormous challenge. Table 2.2.2 shows that, only about half of the pupils had adequate sitting space” (UBOS, 2006). So the problems we are seeing today, is systemic from the mushrooming of schools and districts who built-up schools after the announcement of the UPE in 1997. I am not saying it is easy to keep the upkeep after the surge of schools, but if the state wanted them as a priority. They would have allocated funds to it over time.

Clearly, that part has gotten wasted and the state hasn’t figured out that buildings needs upkeep, schools needs equipment and teachers needs salaries. I know all of that seems basic, but the deep understanding of that seems lost somewhere.

Since if you are seeing the numbers, the Education Ministry got 24,7% in 1998 and now in 2018 it get’s 10,87 % of the National Budget. The schools has surged then and the budget is smaller, that meaning the more schools and teachers are getting significantly less funds for their operations. This is clearly the will of the state, as they are prioritizing other parts of government and not the schools. So the pledge before the 1996 Election is now being abandoned, the Ten Point Program point is being dismissed and the State showing disregard for its own system, as the rich can have their own. The poor can have lesser quality and the ones who care about their future can got to the private ones. Because of this I want to go back to 1996, because it says a lot, about why its like this today.

So, we are not going back to 1986 today, but 1996, when this happen:

Given his earlier opposition to the idea, President Museveni’s decision in March 1996 to make universal primary education part of his manifesto for the upcoming presidential election campaign represented a sharp break with existing policy. In a radio speech delivered on 27 March, Museveni promised that, if re-elected, he would implement a plan giving four children per family access to free primary education (the plan would also apply to orphans) (Radio Uganda 27.3.1996). This education promise was, however, just one part of an overall election manifesto that included pledges concerning liberalisation of the economy, road building, defence, and renewed East African cooperation. In fact, improvement in education was listed as only the fifth of seven bullet points on the back of Museveni’s

published manifesto (Museveni 1996). Though free primary education was only one small part of President Museveni’s initial election manifesto, during the course of the campaign it soon became clear that the promise to abolish school fees was striking a chord with the electorate. Ugandan officials from the period recall that several of Museveni’s close advisors repeatedly sent messages to the Ministry of Finance after campaign meetings in order to emphasise how the UPE promise had been well received” (Stasavage, 2006).

We could see it was his own initiative, as the President knew what would strike a chord, making sure the kids was educated and had a better future. The same resonates today, but the state has forgotten that. They are not caring, they build a giant program, a big school system of Primary Schools, but not allocated or planned the upkeep of them. That is why the state of the schools are going down and the level of poor public schools is rampant. The districts and sub-counties are not getting enough to keep the schools in functions or even the buildings up. That is why we can find pictures of schools falling apart and looking like they we’re forgotten the day after they finished building it.

From a report from the Ministry of Education and Sports in 1999 said this: “Uganda spent only US$8 per pupil in the early 1980s, and in financial year 1997/98 US$32.50 was spent per pupil” (…) “ UPE is one of the surest means that will lead Uganda to the attainment of the Jomtien Conference (1990) pledge of providing basic education to our primary school going population. As we provide that ìminimum package of knowledge, skills, values, and attitudes required by every person to enable him or her live as an independent, productive and effective citizen in a societyî the individual is empowered to meet her or his daily needs and aspirations, those of the community and the nation, which are focused on modernisation. Uganda is confident that by the target year 2003, Universal Primary Education will have been achieved for all its children” (Ministry of Education and Sports, P: 19, 21, 1999).

So in 1999, the State was hopeful, today in 2018, UPE is not for all children. Not if you listens to the words and the statement from Museveni. It’s Private Schools for the wealthy and the UPE for the POOR. Therefore, Museveni is claiming to classes and two system, which is really demeaning to the ones going to the UPE schools. This is his fault that the schools are bad. He introduced the system, he made it and built it. However, he forgot to the upkeep. He forgot the pledges of the past, even the goals of his own ministry in 1999. It is nearly 20 years since or 19 years ago. Therefore, if Museveni has forgotten it is natural, I don’t remember what I wrote a year ago. However, he promised this and used his Presidency to promote this. The UPE is one of the few grand achievements of Museveni. Even I can say that. But now its rotting and that is because the State has stopped funding it. It is their own decisions not upgrading or even maintenance of the buildings. It is weird that the NRM went into this, build this giant school program and had no plans for maintenance of the Schools or the Salaries of the teachers.

It is easy to start something, but when it continues, you needs to allocate, secure and also funds for day-to-day business. That is forgotten and today, Museveni has given it up. If not he doesn’t care about the UPE he introduced officially in 1997 and pledged during the 1996 Campaign. I say that because, well they have gone from using over 20% of the yearly budget in the 1998 to around 2000, but now the state has allocated as little as 10%. So it the Primary Schools are neglected, because the State has decided to neglect them. It is because the state has built a lot of them, but not funds to maintenance of them. Museveni knows this, but doesn’t say it. That is why the schools are for the poor, because the President even keeps the Government Primary Schools poor themselves.

I just have to ask the President, you used years and your time in the beginning of your time as President to build up the Universal Primary Education, have you officially given it up? Should the Ugandan population give it up too?

If you I can put the whole situation into one simple explanation: Museveni wanted to give the public a giant castle, he pledged to give the public that giant castle. He actually built the giant caste and made sure the public could use the castle. However, with time he didn’t have the funds or the money to maintain the castle. The walls and barricades are failing, the walls are weaker, the structure needs fixing. The servants, the people who are inside the castle are not getting paid and even educated to keep the walls steady. So, the stones and the building are looking more like a ghost-town than a castle. Museveni could have had a castle, instead he has a rundown ghost-town.

There are too many UPE schools that are rundown without proper buildings, which has been neglected. The same has the teachers and the pupils, who them all are living through it. Their future is depending on it and they are forgotten. Now the President tells, the ones who can afford it should go to the Private Schools instead. The poor has enough with the UPE schools. That just shows how he has given up the 1990s project.

Isn’t this a sign that you as a leader should have retired, since you have actually given up one of your achievements?

Peace.

Reference:

Opio, Sam Caleb – ‘I’m going to fulfil all my outstanding pledges – Museveni’ (04.03.2018) link: http://www.monitor.co.ug/News/National/I-am-going-fulfill-all-my-outstanding-pledges-Museveni/688334-4327940-view-printVersion-27vqxt/index.html

Stasavage, David – ‘The role of democracy in Uganda’s move to universal primary education’ (2005) Cambridge University Press

Ministry of Education and Sports – ‘THE UGANDAN EXPERIENCE OF UNIVERSAL PRIMARY EDUCATION (UPE)’ (July 1999).

Opinion: President Museveni praises Equatorial Guinea for it’s rampant Oil-Corruption; wants to learn his tricks!

In these days the President Yoweri Kaguta Museveni of the Republic of Uganda are on a state visit in Malabo, visiting and learning tricks from the Equatorial Guinean President Teodoro Nguema Obiang, who has used the oil to enrich himself and his loyal subjects. Not build a welfare state, but make sure the family of Obiang get wealthy. Certainly, Uganda is preparing for their own oil production in the Lake Albertine basin, as the pipeline building from the production to the Port Tanga in Tanzania.

This is why President Museveni are visiting Equatorial Guinea to learn the tricks of the trade, as the state of Uganda are still in the dark of the oil-deals between the international companies and the state. We can wonder how the funds will be spoiled and how Museveni plans to use the oil funds for personal gains. If so, he wouldn’t praise President Obiang, who has his whole career to spend the oil profits from his republic. This is what Museveni wants to learn, since his career has been tricking out all sorts of play from Ugandan republic. The petroleum profits can be misspent and hidden just like in the republic of Obiang. Take a look!

President Museveni’s praise:

We are therefore in Equatorial Guinea for two things: looking at how to support prosperity of one another and how to push for our strategic security. I also congratulate Equatorial Guinea for using it’s oil and gas very well. When I was last here for the AU Summit, I noticed gaps between the airport and the city centre. Today, all these gaps were gone. In their place are new, well-planned buildings. And I see the city is refurbished. Some people say oil is a curse but in Equatorial Guinea it is a blessing” (Yoweri Kaguta Museveni, 26.08.2017)

Business in Equatorial Guinea:

Since the discovery of the offshore oil deposits, many investors have shown great interest in the country. Foreign direct investment inflows into the country had thus been consistently high for the past years. Nevertheless, in 2016 the FDI inflow amounted to USD 54 million, a sharp decrease from USD 233 million recorded the previous year (and the historical peak of USD 2.73 billion in 2010) . The total stock of FDI in the country is currently at USD 13.4 billion” (…) “Corruption in particular is problematic. In addition, the business climate of the country remains rather unfavourable for investment. Cumbersome procedures and high compliance costs slow licensing and make starting a business more difficult. Weak regulatory and judicial systems may discourage foreign investment as well, along with high credit costs and limited access to financing. The government controls long-term lending through the state-owned development bank. Equatorial Guinea ranked 178th out of 190 countries in the 2017 Doing Business report published by the World Bank, losing three spots compared to the previous year” (Santander Trade, 2017).

Son of the President on trial:

The corruption trial of Teodoro Nguema Obiang Mangue, the son of the president of Equatorial Guinea, ended in Paris on 6 July with the prosecution calling for a three-year jail term, a €30 million (US$34 million) fine and the confiscation of assets. The Tribunal will return a verdict on 27 October. The 48-year-old vice-president of Equatorial Guinea was not in court to hear the prosecution’s claim that he used money stolen from his country’s treasury and laundered through a shell company to fund a lavish lifestyle in France” (Transparency International, 2017).

This was what that is well-known of the Equatorial Guinea corruption and the son of President has also had challenging cases in the United States. Now the son is also having alleged fraud and criminal charges in France. Clearly, the Ugandan President has already known for corruption behavior. Therefore, even a state agency of PPDA has some words, that the government needs strict regulations before procurement and infrastructure development. This will be clearly important when it comes to petroleum industry. Take a look!

PPDA strict regulation on public procurement:

Public procurement is a key pillar of the public financial management system. The country’s budget and plans are translated into actual services to our people through the public procurement system. It is also the link between the public sector and the private sector as it is the medium through which the private sector does business with Government. Public procurement therefore involves large sums of money and as our budget grows with the priorities of Government remaining infrastructure development, the proportion of the budget earmarked for public procurement remains significant and therefore calls for strict regulation” (PPDA, 2017).

Audits and investigations by the Public Procurement and Disposal of Assets indicate that corruption in the procurement process manifests more in the evaluation of bids, reported to be at 58%. PPDA’s Manager Capacity Building Ronald Tumuhairwe says such corrupt practices lead to awarding of contracts to incompetent individuals hence shoddy works in several government projects” (…) “He adds that the second process where corruption manifests is awarding of contracts at 12.5%, followed by receipt and opening of bids, reviewing evaluation of bids, advertising and signing of contracts” (Sebunya, 2017).

President Museveni clearly has own agencies saying it is important with strict regulations on procurement and infrastructure developments like the ones needed for oil industry in the republic. The regulation of oil industry is lax, to make sure the state isn’t transparent with its profits and taxation of the industry. This is what Museveni wants, that the state and the public doesn’t know the contracts or the agreements between the parties involved. That is something President Obiang surely have the capacity to teach Museveni. And how to make sure his family is earning from the state resource, instead of the public and the state itself. Peace.

Reference:

Transparency International – ‘ON TRIAL FOR CORRUPTION: FRENCH PROSECUTORS DEMAND JAIL TERM AND €30 MILLION FINE FOR OBIANG’ (11.07.2017) link: https://www.transparency.org/news/feature/on_trial_for_corruption_french_prosecutors_demand_jail_term_and_30_million

Santander Trade – ‘EQUATORIAL GUINEA: FOREIGN INVESTMENT’ (August 2017) link: https://en.portal.santandertrade.com/establish-overseas/equatorial-guinea/investing-3

Sebunya, Wycliffe – ‘Corruption manifests most in the procurement process – IG’ (25.08.2017) link:http://radioonefm90.com/corruption-manifests-most-in-the-procurement-process-ig/

PPDA – ‘EVALUATING INNOVATIVE ANTI CORRUPTION POLICIES IN PUBLIC PROCUREMENT IN UGANDA’ (02.08.2017) link: https://www.ppda.go.ug/evaluating-innovative-anti-corruption-policies-in-public-procurement-in-uganda/

OAG Muwanga explains in two reports problems and errors within the Petroleum Industry!

The Auditor General has two reports on the Petroleum Industry and the issues of Petroleum Data and the Petroleum Fund. The errors of the state, the PAYE of the tax to URA. Proves that the monies earmarked for the Petroleum Fund, ends up in the Consolidation Fund. This is proof of the problematic use of the added taxes before the oil adventure really takes off and the drilling of the explored blocks in the Lake Albertine Basin. Where already different international companies have come to drill and the state is making a petroleum pipeline to Port Tanga in Tanzania. Therefore, these vast resources and possible taxes created by the industry and within the Republic. Still, the default problems that the Auditor General address can be fixed. It is just a matter of morals and actually following guidelines. Some are even set in the Public Finance and Management Act of 2015, so if for instance URA follows it, the problems of transactions into wrong fund can create payment arrears and also future problem of spending by the state. Since the misuse of funds and taxes can be allocated to other than what they was expected, as the Consolidation Fund has other uses than the Petroleum Fund. Just take a look!

Petroleum Fund:

For the six months ending December 31, 2016, the Fund received non tax revenue worth UGX 922,348,854 (USD270,900) as surface rental fees from Tullow Uganda Operations Pty and Total E & P Uganda” (OAG, P: 7, 2017).

It was however noted that monies collected by Uganda Revenue Authority (URA) under the income tax on income derived from petroleum operations such as PAYE, VAT and WHT is not being remitted to the Uganda Petroleum Fund. This contravenes the Public Finance and Management Act 2015” (…) “In their opinion PAYE is not tax charged on income derived from petroleum operations but paid by the employees and as such it had been excluded from the definitions of petroleum revenues. Arising out of the above it was established that UGX.l1,390,530,053 collected through the commercial banks and remitted to the consolidated fund should have instead been transferred to the Petroleum Fund. Management has promised to remit it to the Petroleum Fund before closure of the financial year 2016/17” (OAG, P: 10, 2017).

During the period under review, the fund received USD 270,900 (Two hundred seventy thousand, nine hundred dollars) in respect of surface area rentals consisting of USD 113,400 (One hundred thirteen thousand, four hundred dollars) paid by Total E& P Uganda for the development areas of Ngiri, Jobi-Rii and Gunya and USD 157,500 was paid by Tullow Uganda Operations Pty Ltd for development areas of soga, gege, Kasemene, Wahrindi, Nzizi-Mputa & Waraga, and Kigogole- Ngara Unrealised foreign exchange gains worth UGX 15,093,435,449 have been recognised in the Statement of Changes in Equity. These arose from translating the USD opening balances and revenue collected during the period into UGX at the closing rate for reporting purposes” (OAG, P: 14, 2017).

Petroleum Data:

The oil companies did not fully comply with submission of reports relating to their drilling, exploration activities and operations as required. Delays and non-submission of reports results in an incomplete database which may reduce the effective use of the database in petroleum resource management” (OAG, P: vi, 2016). “The shortcomings in the management of petroleum data by the Ministry of Energy and Mineral Development may affect the completeness of the data on the existing petroleum potential, extent of reserves, and amount recoverable thus reducing Uganda’s ability to maximally exploit and benefit from its oil and gas resource potential. A thorough understanding of the resource base and its geographical distribution informs key decisions on the rate of exploitation and potential future revenues” (OAG, P: viii, 2016).

This should all be worrying that the State and the Industry isn’t sufficiently ready for the activity, as the URA cannot even allocate funds correctly. This is even before the Petroleum Data is taken care of and made sure that the exploitation and drilling happens where the best well is within the block. Secondly, the real value of the reports and the licenses that the state would offer to the companies. That because the flow of data and the status of it wouldn’t be where it could be. This is losses created by maladministration and lacking will of institutionalize the knowledge. Instead, the Petroleum Industry is controlled and has just a few handshakes away from the State House. That is why the URA might have delivered the funds to the Consolidation Fund instead of the Petroleum Fund. All of the potential might be wasted in the lack of protocol and care of resources management that is needed in the Ministry of Energy and Mineral Development (MoEMD).

The recommendations and the looks into the issues should be taken serious by the Petroleum Industry and the MoEMD. So the state could both earn more on the industry and also create more positive growth through the provisions that is already made in Public Finance Management Act (PFMA) 2015. So time will tell if they will be more reckless, if they will listen to the OAG or if the Presidential Handshakes will steal it all for keeping the NRM cronyism at bay. Peace.

Reference:

Office of the Auditor General Uganda – ‘REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE PETROLEUM FUND FOR THE SIX MONTH PERIOD ENDED 31sT DECEMBER 2016’ (07.06.2017) – John F.S. Muwanga

Office of the Auditor General Uganda – ‘Management of Petroleum Data by the Ministry of Energy and Mineral Development’ (December 2016) – John F.S. Muwanga

EU’s new regulation plans to scrap imports of conflict minerals by 2021!

The people back home wouldn’t buy a ring if they knew it cost someone else their hand”Maddy Brown (Blood Diamond, 2006).

The European Union are acting out of care and thinking of transparency for the industrial imports and mineral exporters. This is happening just a little month after the United States opened up their legislation for importing more from conflict zones. While the European Union plans to close the gate from areas and from sources that export Conflict minerals.

So the EU laws are becoming more stricter than the United States, even if the law they have enacted in the European Parliament and Council of the European Union, will be effective from 2021. So it is 4 years until it has giant effect and gives time to refinery and importers to change behavior. Something that is necessary, as well as the public have to grow concern of the affects of buying conflict minerals. Even as the conflict minerals still come into the market of Europe and into the refineries so the consumers doesn’t know and cannot follow where their products who contain minerals comes from war-zones.

That the European Union takes this serious and acts upon this Nobel, and proves that they does not want to support militias and guerrillas that keeps control of mineral rich areas and their exports to supply weapons and continue warfare in for instance the African Great Lakes Region. Take a look!

Background of new rule:

This Regulation, by controlling trade in minerals from conflict areas, is one of the ways of eliminating the financing of armed groups. The Union’s foreign and development policy action also contributes to fighting local corruption, to the strengthening of borders and to providing training for local populations and their representatives in order to help them highlight abuses” (EU, P: 8, 2017).

Conflict Minerals from Great Lakes Region:

The Commission and the High Representative of the Union for Foreign Affairs and Security Policy should regularly review their financial assistance to and political commitments with regard to conflict-affected and high-risk areas where tin, tantalum, tungsten and gold are mined, in particular in the African Great Lakes Region, in order to ensure policy coherence, and in order to incentivise and strengthen the respect for good governance, the rule of law and ethical mining” (EU, P: 16, 2017).

Trade of Minerals funds armed conflicts:

Preventing the profits from the trade in minerals and metals being used to fund armed conflict through due diligence and transparency will promote good governance and sustainable economic development. Therefore, this Regulation incidentally covers areas falling within the Union policy in the field of development cooperation in addition to the predominant area covered which falls under the common commercial policy of the Union” (EU, P:17, 2017).

Important Article:

Article 3: Compliance of Union importers with supply chain due diligence obligations

1. Union importers of minerals or metals shall comply with the supply chain due diligence obligations set out in this Regulation and shall keep documentation demonstrating their respective compliance with those obligations, including the results of the independent third-party audits” (EU, P: 23, 2017).

Date of Application:

Articles 1(5), 3(1), 3(2), Articles 4 to 7, Articles 8(6), 8(7), 10(3), 11(1), 11(2), 11(3), 11(4), Articles 12 and 13, Article 16(3), and Article 17 shall apply from 1 January 2021” (EU, P: 51, 2017).

What the statements on the law:

The Commission will consider making additional legislative proposals targeted at EU companies with products containing tin, tantalum, and tungsten and gold in their supply chain should it conclude that the aggregate efforts of the EU market on the responsible global supply chain of minerals are insufficient to leverage responsible supply behaviour in producer countries, or should it assess that the buy-in of downstream operators that have in place supply chain due diligence systems in line with the OECD guidance is insufficient” (…) “In the exercise of its empowerment to adopt delegated acts pursuant to Article 1(5), the Commission will take due account of the objectives of this Regulation, notably as set out in recitals (1), (7), (10) and (17). In doing so, the Commission will, in particular, consider the specific risks associated with the operation of upstream gold supply chains in conflict affected and high-risk areas and taking into account the position of Union micro and small enterprises importing gold in the EU” (…) “In response to the request of the European Parliament for specific guidelines, the Commission is willing to develop performance indicators specific to the responsible sourcing of conflict minerals. By means of such guidelines, relevant companies with more than 500 employees that are required to disclose non-financial information in conformity with Directive 2014/95/EU would be encouraged to disclose specific information in relation to products containing tin, tantalum, tungsten or gold” (EU, P: 57-58, 2017).

The European Union is doing something positive with this. That they show effort and care for the imports and what affects the export has locally, so if the minerals export is shady, the export will cease. So if the due diligence regulation works and the industry complies, the effect can be enormous. The consumer will also know that there are not supporting by third party purchase to pay for ammunition rebels, warlords or guerrillas in far away lands. This should all be seen as step of making a better world and honorable society. Where the money is where the mouth is! Peace.

Reference:

Council of the European Union – ‘Proposal for a Regulation of the European Parliament and of the Council setting up a Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas – Outcome of the European Parliament’s first reading (Strasbourg, 13 to 16 March 2017) – (20.03.2017).

President Trump: “Presidential Memorandum: Suspension of the Conflict Minerals Rule” – Legalizing export of questionable minerals from the DRC!

conflict-minerals-08-02-2017-p1conflict-minerals-08-02-2017-p2conflict-minerals-08-02-2017-p3

Ministry Response to Press Report in the Daily Monitor: “Army Block Ministry as Janet Museveni Takes Office” (28.06.2016)

Ministry 28.06.2016

Uganda – Ministry of Education and Sports – Internal Memorundum (23.06.2016) – Ministry closed by Police as J.M7 takes over the Ministy!

Janet Museveni 23.06.2016

“Roads near ministry of education closed as Janet Museveni takes over office” (107 SALT FM, 27.06.2016)

Minstry of Education Uganda 27.06.2016

Press release: Uganda announces first Petroleum Exporation Liscensing Round (24.02.2015)

UgandaOilUgandaOil2

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