Dear Mr Ruzindana,That Uganda has to seek legal recourse against Heritage Oil and Gas, in Britain, is so astounding that I am speechless.What are we to assume about Elly Karuhanga, Pierre Kabatsi, Sam Kuteesa and all of them lawyers around Museveni.These fellows grew up in an independent country!!Signing away our sovereignty is a most stupid action.Mitayo Potosi================**Kololo prayers: Target was the electorate, not God By Augustine Ruzindana
Posted Wednesday, June 23 2010 at 00:00 Government and Heritage Dispute: Saturday Vision of June 19 informed us that “Oil extraction hits snag” because of “tax disagreements” between Heritage Oil and Gas Company Ltd and the government. The government is insisting that Heritage has to pay capital gains tax if it sells its rights to another company. That is as it should be. But Heritage has refused arguing that it is not subject to the tax and it is therefore referring the dispute for arbitration in London in accordance with Article 26 of the Production Sharing Agreement (PSA). This provision equates the Ugandan state to Heritage company, thus negating the element of the public interest and sovereignty of Uganda. The Energy Institute to which the dispute may be referred is not a neutral or impartial entity as it represents oil companies and oil professionals in Britain, without representatives of oil producing developing countries. The current chair of the Institute is a Shell UK high official and he is responsible for selecting the expert to adjudicate the dispute. The Uganda government must, therefore, account to the people of Uganda as to why it agreed to a close that may cost the country $400 million. This is just the beginning of the heavy “losses” in this sector. *Mr Ruzindana is the FDC deputy secretary general for policy and research* a_ruzind...@yahoo.com
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