A Breakdown: Oil exploitation, which is so taxing…

 

The deal that broke down these days…

In the Republic now its official that the companies that was supposed to buy the stake and the licences to drill for oil from Tullow Oil have backed out. This means, that Total and CNOOC is not operating or willing to foot-the-bill that Tullow left behind.

This is all a play for guards, they all want the slice of the price, but don’t want to be taxed for it. They want tax-holidays for operating and extracting the oil, even as the incentives to build the oil pipeline to Tanga, Tanzania is put on hold. Since a big part of the Lake Albert Basin is still in question. Since, the Tullow Oil doesn’t want to deal with the taxes in question.

Tullow Oil have to back-pay taxes, which it lost in court. They are obliged to pay these, but want the other companies to foot-the-bill, since they will drill and exploit situation. The others gather that this has occurred before they did and that Tullow should pay it. That is why it’s a dead-lock. Because, none of the companies want to pay the taxes.

This is the infamous taxes, which led to the Presidential Handshake drama and wobbling defence of it. That made all the people and civil servants dance for a hot minute. Now, we are seeing the deadlock because of this one.

The state is allowed and should tax the ones whose operating in their territory. Without a question or without any hesitation. Because, they should be able to pay for your rights to be able to do business somewhere. However, here it’s a mismatch of the amounts gained in courts and the planned surrender of Tullow.

Tullow considered that their Farm-Down deal with Total and CNOOC would clear their old debts with the Republic. Instead, the other companies want its shares, but not its past invoices. Which is natural. Because, your paying for other peoples misfortune and cost of operating. That is simple math.

It is Tullow that has done business, who has been operating and whose been in charge of certain parts of Lake Albert Basin. They got to stay responsible. Now, they just looking like a shell-company wanting to be a tax-evasion corporation, who puts their costs on their trading partners.

Within that reason, its understandable that Total and CNOOC wants to have other options and other obligations, also pay their taxes and returns, if they start to drill on the licences previously kept by Tullow. But at this moment, the company think it can get the hook and crook.

Because the victory of the President Handshake isn’t a bargain, but a huge toll for the company. That is why it wish to push the envelope to someone else. This is not natural, but not without a consequence. That they are backing out and giving way. Instead of going into business on these sectors of Lake Albert.

The loss, is also the proposed earnings, the supposed development of the oil sector and the pipeline to Tanzania. As everything stops and shuts its operations. As the CNOOC is sacking employees and who knows what Total does too. Tullow might even do it too, until they find someone who wants to pay their bills. Because, from history they showing that they don’t want too.

The state one, what was theirs, but the companies doesn’t want to pay to play. They want tax-holidays and a free ride to the promised land. That doesn’t happen and therefore, the stalemate and yet another set-back for the oil development there. Peace.

Opinion: Patron Andrew is a lost sheep!

In this here piece, I will digress the words of Andrew Mwenda, as he has published these earlier in the day on the 4th September 2019 on Facebook called ‘The corruption of People Power’. These sort of pieces get written by this man, now and then. Especially more often when its campaign season and when he can show token of loyalty to President Yoweri Kaguta Museveni and National Resistance Movement.

Today, its yet another day of this. I will take some small fragments of it. Because, it is not needed to read the whole thing. Since, these small pieces says what is vital from it. The rest is more of the same hogwash and stone-age mentality is known for the political voodoo that Mwenda is now known for.

People Power is the most trending political cult in Uganda. They are angry at the corruption of President Yoweri Museveni and his National Resistance Movement (NRM) government. While its followers carry a deep sense of victimhood, they are not resigned but energized. They want to get Museveni out of power – but what for? To that later!” (…) “Museveni has ruled with the same corruption and patronage as Mobutu of former Zaire. However, he has done this while sustaining an impressing rate of economic and therefore revenue growth. This has allowed him to continually build the institutional capacity of the state and meet the demands for more patronage and a bit of welfare. By not sustaining economic growth, Mobutu ate the goose that was supposed to lay the golden egg of state consolidation. Museveni has demonstrated that patronage and clientelism (corruption) are not necessarily injurious to state building but are an important accompaniment to it.” (…) “Thus control of state power became a means of controlling economic resources and in turn control of economic resources became a means of reproducing power through neo-patrimonial networks. African elites did not fight for independence to dismantle the colonial state but to inherit its privileges. Listening to them, it becomes clear that People Power is the embodiment of this popular expectation. Given power, it would reproduce exactly what Museveni has presided over – massive corruption and patronage – but most likely (and sadly) without his finesse” (Andrew Mwenda, 04.09.2019).

Fist and foremost, a cult is a organization with internal secrets, who comes with a mission and trying to catch people to it. Where they will keep them, with the mystique and personality driven, as the organization is playing a rouse and keeping them captured. That is why people are trying to leave cults, unless they are brainwashed.

Secondly, this is not how People Power Movement is operating and neither very secretive. It has a smashing personality driving it. But his not trying to cover his stances nor brainwashing his people. That is more the works of Mwenda and the NRM. Who uses propaganda and government outlets to unleash unverified “truths” and deceptive methods to silence opposition.

Third, what is weird with this text. Is how openly Mwenda defends the excessive patronage and corrupt behaviour of President Museveni. But because its him and his ways its fine. It is dandy, because his taxing it right and making the elite dance after him. That is really a message, which someone who supposed to speak sense shouldn’t do. This sounds like a brainwashing operation done to Mwenda, because, when is thieving acceptable? When Museveni steals for his Patronage. That is really a mental breakdown.

Fourth and final address, how can you know the outcome of the possible PPM driven government? When your considering them to continue what NRM did? How do you know? What is the evidence of anyone becoming Museveni 2.0? Just because Museveni became a Modern-Day Mobutu. Well, that is just a prophecy from a man that says thieving is fine for Yoweri. I don’t know what sort of charlatan, who would believe a man who says theft is fine for some, but believe me… this other dude will wreck the Republic.

Mwenda is a lost sheep. His a lost man. Surely, the defiance of Besigye broke his mental stimulus or something. Lost his marbles. Because there is a while since I respected the perspective of Mwenda.

Andrew where did you go? I don’t know, but certainly not somewhere, where you get enlightened. Peace.

Opinion: Museveni will use any excuse not to retire…

I would have retired long ago if I was sure that the crucial actors saw the danger that Africa has been in ever since 1453 when the Turks captured Constantinopole, blocked the silk road for the Europeans and forced them to come to Africa on their way to the East. One of the strategic bottlenecks is market and political fragmentation. The medicine for this is economic and political integration. The medicine for market fragmentation and political balkanization is economic integration like the EAC and also political integration (East African Federation or Confederation). Why don’t political actors, if they really care about Africa, talk about these issues in addition to talking about Museveni’s retirement?”Yoweri Kaguta Museveni (Edris Kiggundu – ‘Museveni: Why I cannot retire now’ 28.08.2019).

This is getting old, this is such an old thing. I have written about this countless times for various of reasons. If it is term-limits, age-limit or even promises made, which the President have broken.

President Museveni has said many times before that he would retire. However, Yoweri has never had the intention or the idea to do so. If there isn’t a crisis he has to solve, something he has to eat or even a mare coincidence.

If there is the battle against the Lords Resistance Army (LRA), the battles of Allied Defence Force (ADF) in the Democratic Republic of Congo, his initial sponsored enterprise in AMISOM or whatever he needs as an excuse to stay in power.

The President will use whatever solution to keep himself in power. Now its the East African Community, that is his baby. Just like it in past was to save Northern Uganda. Before that was to kick Obote, Amin and whoever else. If not it was get rid Mobutu too. That is just what Museveni does.

His using the public as pawns, his using yet another narrative to stay in power. Because, there is always an excuse to be at the helm. No one else can solve it or fix it. Only Yoweri who has the capacity and the ability to resolve.

Which is all untrue, because his not the saviour or the man of salvation. His not the only man to rule the Republic, indefinitely.

If he was just saying, he wanted to be a self-styled President for life, a dictator to overrule the public as long as he breathes. That would have been truthful. But his just trying to shift the narrative and the story. So, that his needed and no one else, because his golden fingers is the only one can manage to address things.

That is what his initially saying and continues to say. In addition, finding new excuses. It is getting old. Revising old excuses and arguments, instead of showing real reasons for being there. Peace.

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

Opinion: We shall disagree with the NRM, but not nail them!

A man with an National Resistance Movement – NRM yellow Beret has been nailed by yet to be identified people while in kalerwe a kampala suburb . Here at the Hotspot we condemn such acts of intolerance and violence” (Radio Simba Ffemw Mweffe, 29.08.2019).

The greatness of a man and movement is when it can turn the other chin, when the movement and people gathered around a cause in non-violence and with wishes of peaceful co-existence can move-on from its bloody past.

Even as the news spirals are going in cycle. When there are so much oppression and ill-activity from the state towards the Opposition. The opposition need to prove they are different from the ones currently ruling. Just like the innocent bystanders at rallies, public consultations, which has been hurt over the years. It is all state violence against and its wrong. The bullets which has killed and taken lives for taking part in opposition activity. We know this has happen in Republic and we condemn it.

The same shall be done over this matter. There is no justification or no right action to nail someone’s head over the Beret they are currently wearing. Just like the police get no favour arresting people for wearing red berets or printing Besigye T-shirts. That is just wrong, both are wrong.

The individuals who did this today to the man wearing the NRM beret needs to answer for their crime. Just like anyone should. Something the NRM and their authorities also needs to answer for. The acts of abduction, torture and safe-houses. The acts of political policing and the acts of violence against the people who shows up at opposition activities. Putting up roadblocks and arresting Turinawe/Amuriat-Oboi when they criss-crossing the Republic. Yes, we know about that.

Today’s action was wrong. No one has the right to inflict this hurt on anyone. Nobody should consider to do this harm. They shall answer to the authorities and to laws of the land. That is cool, but so should be done for injustice done with impunity over the years at the opposition. This shouldn’t be blown out of proportion. Yes, it is terrible and wrong.

But god damn-it. The state has systematically oppressed, abducted, detained and pinned charges on the opposition. It has as long as I can remember been violent against citizens when the opposition gathers, with mambas, tear-gas and live-bullets. There been hospitalization of innocent civilians and people have been fatally hurt. Therefore, the revolution eats its children.

Now, that being said. This is just mere tragic event, that no one earns a dime on. There is no political mileage. There never shall be, because the innocent and standby civilians are the ones who pay the price, while the Big-Men moves on. We all know the individual hurt today didn’t deserve it. Neither anyone who has been touched in other events either.

This just proves a set of breaking moral codes and it stems for the top, as the top-down orders are shown and the only way to answer it is by addressing it in the fashion. Then your not better, but the same. That is why the opposition needs to show finesse and humility, even in the midst of draconian laws and oppressive state. Since, its supposed to challenge the sinister acts and prove their character. The state will use all tools and ensure its power by all means. Therefore, this sort of acts, acts sadly as good spin for why the opposition is no better.

We know the state is brutal and uses force, uses the laws and the authorities to silence the dissident. Even as the fans and supporters of state goes into public. The opposition got to show they are better and not using the same violence the state does. Because, than they win. Peace.

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.

Opinion: Mzee lies to Godfrey

Godfrey Begumisa (Twitter-@GodfreyBegumis2), tells Bobi Wine to go to the bush if he wants power. That is not necessary. Politics is about competing policies. Our policy is well stated. Let the others also state theirs. If they do not have anything different, then support what is on the ground” (Yoweri Kaguta Museveni on Facebook, 26.08.2019).

Well, this is too easy. Therefore, this will be very short. There is no-way in the current state of affairs, that policy nor leadership itself would ever topple Museveni. He has and direct the state at every single turn from the State House Entebbe or Nakasero. To think otherwise is naive or stupid.

Secondly, all the security organizations is behind him and is loyal to him. Even if he pay them squat and they live in piss-poor conditions. As their loyalty is to his cause and his usage. They continue to be used by him, by hoping for a promotion and better pay in the future.

Thirdly, the Electoral Reforms are lackluster, the Electoral Commission and all the state machinery are gearing in for another term. There is no way, they want to squander or even lax into 2021. Unless, he start having strokes or even poke at some serious illnesses caused by fatigue and advanced age.

Fourth, Museveni is not giving up on policy, even if all his actions are filled with mismanagement, corruption and patronage. Still, he will act like statesman and act like pure-bread politician. Even if he is war-lord and a manipulator.

Bobi Wine can come with all the guns blazing in a political battle over the ballot and at this current state. He will loose. No one sensible will deny that. Besigye have done the same thing and popular, but beaten in the polls, because the polls are massaged to fit Yoweri, not the public. The EC has delivered the majority of MPs and the needed leadership across the Republic. It is only a figment and some power-play moments where the opposition has gotten some traction. But that is when Museveni and NRM feels safe about it.

That is why Godfrey is right. The history repeats itself. The only way to get rid of a rigging, self-styled for life-president is to topple him with weapons and arms. Just like Museveni did Mobutu and Obote. Not that we want another coup d’etat or bush-war. But its not like Museveni will accept a peaceful transition. As the stacks are always on his side and rigged to his advantage. Its only the blind that doesn’t see that.

At this point and time, a incarnation of Mahatma Gandhi, Nelson Mandela and Jesus Christ couldn’t beat Museveni at the polls. He would have configured the results, edited the stats and crucified his opponents at the Constitutional Square in the midst of Kampala. That is what he does. Peace.

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

Uganda Police Force: CCTV Images at Casuality Ward Released (26.08.2019)

 

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)