Government yet to commit to oil transparency initiative

Officials tour an oil rig in Bullisa District. 

By FREDERIC MUSISI

In Summary

Why join? Joining EITI subjects the country to the highest global standards of good resource management.

KAMPALA

The government has said it still considers signing up for the Extractive Industries Transparency Initiative (EITI), but cannot commit on specific dates.

The EITI is a global standard that promotes revenue transparency and accountability in the extractive sector.

Objective five of government’s oil instrument, The National Oil and Gas Policy, alludes to openness and access to information as fundamental rights of all stakeholders.

The State Minister for Energy and mineral development, Peter Lokeris, told a Transparency and Accountability conference last week that joining the EITI initiative is still a priority; but government was still examining the required processes. “This is not something we can do overnight; it involves a lot of efforts and requirements. But we shall do so at an appropriate time,” he said, adding, “we are instituting a committee to examine how we get on board.”

EITI membership requires oil companies to disclose their payments to the government, and the government discloses its receipts. It also recommends a multi-stakeholder group with representatives from government, companies and civil society established to oversee the process and communicate the findings of the EITI Report.

But Mr Lokeris assured the development partners, civil societies and MPs present, that it was already in government’s interest to ensure transparency in the oil sector. According to government, oil production is projected to start in 2017.

The Finance minister, Maria Kiwanuka, spelt out a number of mechanisms like oil legislations and the upcoming 2012 Public Finance Bill, as measures set up by government to guarantee accountability and equitable distribution of revenues.

“We acknowledge the role played by EITI but I cannot commit myself on behalf of government on when we begin implementing the programme,” Ms Kiwanuka said. Ms Kiwanuka, nonetheless, said oil revenues will be placed under the consolidated fund and shall be managed by Uganda Revenue Authority and the Central Bank.