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Article

19 Apr 2017

Author:
Francis Mugerwa, The Monitor (Uganda)

Uganda: Local firms in oil-rich areas claim oil companies sidelining them in favour of national firms

"Hoima Leaders Dispute Oil Benefits"

Leaders in the oil-rich Hoima District have disagreed with ministry of Energy officials over benefits accruing to communities hosting oil and gas developments. Recently, a team from the ministry held an engagement meeting with the district leader briefing them on the status of national content in the petroleum sector. Mr Edgar Tusingwire, the national content officer at the ministry, told the leaders that the oil industry had presented opportunities for farmers to supply food stuffs to oil workers...[adding that the] government had ring-fenced some services in the industry for Ugandans...

The district secretary of education and health, Mr Mugenyi Mulindambura, said communities hosting oil operations are disturbed by allegations that oil revenues were shared under a presidential handshake. "How can we mobilise poor communities who are hearing that money generated out of a resource they are hosting is being eaten?" Mr Mulindambura asked. He noted that majority of local companies have been sidelined by oil companies in favour of national firms.