This Crude Oil pipeline might be more of a cost than benefit to Uganda

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In this crude oil pipeline, which Ugandans think they “own,” they have minority shareholding of 15%, Total has 45%, china’s CNOOC Limited has 35% and Tanzania’s petroleum corporation General Petroleum Tanzania has 5%.

From a corporate governance/law perspective, we don’t own this pipeline. It’s total’s.

The project will allegedly “displace thousands of small farmers and put key wildlife habitat and coastal waters at risk.

Recently, the state minister of finance presented a loan request to Parliament of Uganda to finance what he called “historical” costs of the oil pipeline. However, on this they just wanted to steal money. Not all assets on a company’s balance sheet are held at historical cost. Especially, compensation of land must be done at market value. According to the compulsory land acquisition Act, compensation of land is done at market value. So there is need to explain what historical cost mean. This amount of sh. 481 billion to pay for historical costs was a lie. They just needed that money to divert it to Gen. Yoweri Kaguta Museveni ‘s political activities.

Recently Total SA chief executive, Mr Patrick Pouyanne, acknowledged that the company’s oil projects in Uganda “represent significant social and environmental stakes.” however, because of corporate greed, they will proceed. This is so unfair to this country

The statement came on the heels of a letter written by 260 civil society groups to the executives of Standard Bank Group —the parent company of Stanbic IBTC —the Industrial & Commercial Bank of China, and Japan’s Sumitomo Mitsui Banking Corporation
raising environmental concerns on the oil investments and urging the banks not to finance the proposed EACOP.

Tens of thousands of people in Uganda and Tanzania have been hurt by human rights violations linked to Total’s oil operations in Uganda, according to two French activist groups.

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