Angry Ugandans have slammed former Energy Minister Syda Bbumba for her failure to read and understand before she signed a contentious Production Sharing Agreement(PSA) that allowed wealthy British firm, Tullow a $157m(Shs568b) tax waiver.
Formerly a powerful member of the ruling NRM government, current Nakaseke North MP, Ms Bbumba on Tuesday told a Parliamentary committee chaired by Bugweri County MP Abdu Katuntu that is investigating wide-range of irregularities in the Oil sector, that she signed the controversial PSA after it had been approved by the Solicitor General, tabling a 2001 letter.
She was the principle signatory to the PSAs and her error would cost the country billions of money in oil revenue.
The point of bother for now-refrained Syda Bbumba is Article 23.5 of the PSA, which states that: “The assignment or transfer of an interest under this agreement shall not be subject to any tax, fee or other impost or fee levied either on the assignor or assignee in respect thereof.”
Ms Bbumba told MPs that, “I did not read the agreement. My signature was based on approval by the Solicitor General. Once he cleared it, I took it that everything was fine.”
This shocked and amused the legislators in each measure.
A minister signing oil PSAs without reading through? This incredible,” Katuntu exclaimed.
As evidence, Ms Bbumba tabled a letter from the SG’s office, dated October 3 2oo1, clearing the deal. Incidentally, the letter was signed by E. Nankkugu on behalf of the Solicitor General.
Ms Bbumba before joining politics ran the show at Uganda Development Bank where she caught President Museveni’s eye and he offered her the juicy Finance and Energy ministries in succession.
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Uganda’s problem is patronage,” said respected media practitioner, Paul Mugabi adding, “People don’t work. No one needs ministers especially the political ones, because they just offer words. Syda should be prosecuted for abusing her office.”
“For about 11 months when Nigerian President Muhammadu Buhari won the seat, he run a government without ministers and things went on better than they do here in Uganda,” he added.
Other Ugandans slammed Ms Bbumba on social media, citing corruption and political influence as the cause of the multi-billion oil money loss.
@lydiaglm Gov’t lost Sh568bn in tax waiver which was due 2 former Minister of EMD Syda Bbumba who signed oil deal without reading.
— Twinamasiko pelon (@twinamasiko19) May 10, 2017
I signed oil deal without reading it, says Uganda’s ex Energy minister Syda Bbumba Of course! That’s how we roll here
— Harriet Anena (@ahpetite) May 10, 2017
@ahpetite @Natabaalo Clearly read nothing before, during and after her ministerial tenure. Blame the appointing authority.
— Godfrey Byaruhanga (@godruhanga) May 10, 2017
While picking up Nyombi, dont 4get to arraign Syda Bbumba who cost UG 175m$ in erroneously awarded tax exemption to Tullow #OurOilOurFuture
— #6bnHandShake (@TGE4uganda) April 28, 2017
The country in 2006 discovered commercially viable oil deposits in the western region.
Oil experts say when production starts, Uganda will rank among the top 50 oil producers in the world and among the top 10 producers in Africa.
