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Article

28 Aug 2012

Author:
Elias Biryabarema, Reuters

Activists demand openness in Uganda's tax dispute with oil firm [UK]

Campaigners called...for Britain to press explorer Heritage Oil and the Ugandan government to allow public access to arbitration proceedings over a $404 million tax dispute. Heritage and the Ugandan government went into arbitration after the Britain-based oil firm disputed the tax bill from the sale of its assets in the east African nation, where oil was found in 2006, to Tullow Oil for $1.45 billion in 2010..."Oil could be a blessing or a curse for Uganda. But the sector has been marred by secrecy, close executive control and corruption allegations from the start," said Henry Bazira, chairman of the Civil Society Coalition on Oil...The oil explorer, which argues its earnings were not subject to capital gains tax because the transaction in question was executed outside Uganda, said the terms of its licences with the country stated any arbitration should take place in London...When asked...why the public was not allowed access..., Uganda's junior energy minister Simon D'ujanga said the issue involved the confidentiality clauses in the production sharing agreements between Heritage and the government...