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.
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.
“Do not act as if you had ten thousand years to throw away. Death stands at your elbow. Be good for something while you live and it is in your power.” – Marcus Aurelius
Today, Attorney General William Byaruhanga delivered his Interim Report on the indictment and the criminal charges of Patrick Ho in connection with Minister of Foreign Affairs Sam Kuteesa and President Yoweri Kaguta Museveni. This has been known now and if these was just mere charges, than the Chinese National wouldn’t get charged and sentenced in a United States Court.
This is because the Chinese National offered a bribe of 500,000 USD each for a possible Oil Deal for a Chinese Company in Uganda. Therefore, the Chinese National made it possible for the high-ranking officials in the Ugandan government to solicit half-a-million United States Dollars for it. That is why we are here today. This was signed off as a Campaign contribution, but by that time, the President had already been re-elected in 2016. We know this, but has to say all this before I quote the Interim Report. What is special about the case too, is that the government will claim the Foundation owned by Kuteesa, but has anyone seen it outside of a paper and a registered entity outside of Uganda Registration Services Bureau (URSB), which it was in 2015. That is why today is special, because a ghost entity got good money for a possible business transaction… that would favorable for the repentance, which happens to the Minister and President.
What is also important to state, which is already white-washed in the interim report, is the delivery of the bribe. That went through customs, which was mailed between the Chinese National and the Minister. Who both combined their efforts to send the money and deliver it in cash, in secrecy, as it was intended to a favorable transaction. Not something that was supposed to end up in Court Documents in the United States and incriminate one, while implicating the high-ranking officials in Uganda.
With that in mind.
“The Foundation received a sum of US$ 499,993 on 9’h May 2016 from a Hong Kong-based NGO known as China Energy Fund Committee. The money was a donation to the Food Security and Energy Sustainability Foundation which Hon. Kutes a and his wife started as a vehicle for enabling Hon. Kutesa to continue to champion some of the causes he had spearheaded during his tenure as the President of the General Assembly of the United Nations with respect to the 17 Sustainable Development Goals”.
While that quote is special and says a lot, it does trying to clear the implicated Minister in the Corruption Scandal that has rocked the man. That the Auditor General did this on direct order from the President. This was to ensure the President and his ally Kuteesa got off the hook. That is why the Foundation and the “donation” we’re the Chinese National had reasons to give there. Like we are naive.
The Foundation is just based on paper. There are no proof of their work or whatever their supposed to do. Certainly, they are servicing some special and unique unicorns, sorry, ghosts. Because, this money came by plane from the United States to Entebbe International Airport, as it entered the Customs as warned to the parties involved.
So, I have a hard time believing the AG in this matter, as he is trying to figure out a way to clear he Minister of his implication, per order as a loyal subject of the President. Who also got money in the transaction done by the Chinese National. They all know this.
Time for the AG get his act together, unless he is a blind soldier for the President. Peace.
Interim Report of the Auditor General on Allegations of Bribery against Hon. Sam Kuteesa, Ministry of Foreign Affairs, in Connection with the Trial of One, Mr. Chi Ping Patrick Ho, A Chinese National, In the United States
“Our people must be taught to desist from accepting bribes. The ability to say NO, must become a core value of our nation” – Sunday Adelaja
It is such a convenience that President Yoweri Kaguta Museveni are planning an Anti-Corruption Drive and new measures on the 10th December 2018. As he was pledging that on the 4th December 2018. This case has been in the works, as it was revealed last year, that Foreign Minister Sam Kuteesa and Museveni was bribed for $1m by a Chinese Associate Patrick C.P. Ho. This news is vital, as it proves how untouchable both of these leaders are. As the Foreign Minister and President can do whatever and get whatever deals behind closed doors.
That Museveni and Kuteesa are doing this is not surprising, but the value and what was at stake. Shows how illicit and unknown the deals with the petroleum industry are in the Republic. They are clearly signing off deals and paying off the State House in Entebbe. As this deal shows how Kuteesa and Museveni operates. This is one of plenty, but one that is uncovered by the U.S. Department of Justice.
“In or about February 2016 – after Kutesa had returned to Uganda and resumed his role as Foreign Minister, and Yoweri Museveni (Kutesa’s relative) had been reelected as the President of Uganda – Kutesa solicited a payment from Ho, purportedly for a charitable foundation that Kutesa wished to launch. Ho agreed to provide the requested payment, but simultaneously requested, on behalf of CEFC China, an invitation to Museveni’s inauguration, business meetings with President Museveni and other high-level Ugandan officials, and a list of specific business projects in Uganda that CEFC China could participate in. In May 2016, Ho and CEFC China executives traveled to Uganda. Prior to departing, Ho caused the CEFC NGO to wire $500,000 to the account provided by Kutesa in the name of the so-called “foundation,” which wire was transmitted through banks in New York, New York. Ho also advised his boss, the Chairman of CEFC China, to provide $500,000 in cash to President Museveni, ostensibly as a campaign donation, even though Museveni had already been reelected. Ho intended these payments as bribes to influence Kutesa and Museveni to use their official power to steer business advantages to CEFC China” (Department of Justice – ‘Former Head of Organization Backed by Chinese Energy Conglomerate Convicted of International Bribery, Money Laundering Offenses’ 05.12.2018, link: https://www.justice.gov/opa/pr/former-head-organization-backed-chinese-energy-conglomerate-convicted-international-bribery).
The Ugandans should be horrified how little the President and Foreign Minister cost, as they were selling off the petroleum licenses for the Lake Albertine Graben and Region. Where there are already dozens of Companies in. Even CNOOC! That is why this would be the second company who got a Petroleum Licenses in the Republic.
The Ugandans should also be terrified that the President only cost $500k and $500k for the Foreign Minister. They only cost A Milli, which is close to nothing. Especially considering what was at stake. These gentlemen are supposed to be there for the public and serve them. But showing only self-interest.
Now, the Chinese National Ho is found guilty in New York yesterday. Therefore, the evidence and the case was solid enough. That proves the reality of how he solicited bribes with the Foreign Minister and President. Clearly succeeded until the US Authorities caught a wind of it. Also, shows how the State House and the President is corrupted. Peace.
“The educated ones leave, the ones with the potential to right the wrongs. They leave the weak behind. The tyrants continue to reign because the weak cannot resist. Do you not see that it is a cycle? Who will break that cycle?” – Chimamanda Ngozi Adichie
There is something about a man who has run the Republic since 1986. The Republic which is now made in image and with his institutions, with his appointed men and woman. Where his cronies, businesses, lobbyist and friendly voices are living close connected. It is in a Republic with various of bodies working on Corruption and ensuring a legal remedy against it. However, none of them is able, none of them has capacity to follow the Ministries, the Cabinet, the Members of Parliament, the Government Organizations or the Bank of Uganda for that matter. They are all falling short, as the corruption scandals are in all corners of the state and still, the President says he has new remedies to ancient problem of eating on people’s dime without a recite.
President Yoweri Kaguta Museveni has had the opportunity since 1986 to fix this. That is if he really cared about it . Mzee would have done with already, but he doesn’t. Because, he knows the eating of his cronies and himself is rampant. That is why he even sanctioned, the Presidential Handshake and other deals behind the scenes at the State House. That is the way to do business, that is why the Attorney General, Inspector General of Governor, PPDA or the Police Force for that matter. Cannot touch the corrupt souls, because they can walk. Abraham Byandala walking free after ripping away money from UNRA like M&Ms wutg the Mukono-Katosi Road Scam. While the Courts couldn’t find significant evidence and had let him go. Therefore, believing that the President cares about fighting corruption isfar fetch. If he cares he has to capture himself first and we know that is a fish he doesn’t want to fry.
“On Monday December 10th, I will announce new measures and the direction we shall take in our renewed fight against corruption. That said, there is corruption in Uganda. It stems from the colonial times. However, when we undertook the liberation struggle of this country, there were more pressing problems than corruption” (…) “However, corruption will now be defeated. The corrupt civil servants have exposed themselves. The population is angry with them. Also, we now have more educated young people. The pool from which to pick their replacements has grown. The problem now is the law manipulated by corrupt civil servants. We now need quicker methods of accountability to deal with the corrupt. I have the political will but I do not want to deal with them outside the law. There must also be a reflection on the morals of our young people. When setting up the Uganda Revenue Authority, we carefully identified young people to work there. But now, URA has kawunkumi (weevils). We need to deal with it” (Yoweri Kaguta Museveni, 04.12.2018).
To believe the President now is naive, as the deals and arrangement that matters are done behind closed doors. The same is done with the Oil Refinery, Petroleum Pipeline, the licensing for oil exploitation and so on. These are major deals and been postponed. It is already a tax case concerning the oil industry that unleashed the Presidential Handshake. There are already other major donor scandals, not only the recent UNHCR and OPM, who has messed up the allocated aid money, there been the GAVI-FUNDS and CHOGM Funds. There are so many corruption scandals, that the National Resistance Movement, has always found a short-cut to eat of the public plate.
Not only when building road, building buildings, but everywhere. Ghosts of all kinds, expenditure that cannot be found or plans that are only made in the thin air, but would never ever exist. That is the manner of how the NRM and the President are eating on people’s dime. They are not accountable, neither really transparent. That is why there are leaks and documents surfacing proving the ills of society and the misuse of money. Which again and again show the Top Officials and ordered from High Above, who steer the money in their way. They are securing their cut and then the businesses can set-up shop or get the land for a factory, hunting ground or some sort of project. While the people are becoming landless and Internally displaced People in some NGOs Camp. That is how the government have fixed the matters and it happens, again and again.
That is why I have little or no faith in the President and his battle against corruption. If he was serious, he would hurt himself, even go after the likes of Amama Mbabazi, Jim Muhwezi, Salim Selah or Sam Kuteesa, but they are untouchables. Just like the Master himself. Peace.