Submitted  by Bunyoro Kingdom’s three-man delegation composed of:

George Kyaligonza, kingdom minister of Minerals and Industry:

Yolamu Nsamba, Principle Private Secretary to the Omukama

Henry Ford Miirima, Kingdom Press Secretary.

The delegation was appointed by Rukirabasaija Agutamba, Omukama of Bunyoro-Kitara, Solomon Gafabusa Iguru, Sep, 2006. responding to a Uganda Gov’t request to send a three-man kingdom delegation to the national Oil/Gas Policy Formulisation Committee.

Terms of reference:

1. To secure Bunyoro-Kitara kingdom’s ( population’s ) interests in the mineral oil and gas exploration and drilling industry.

1. To secure a specified, constitutionalised share of the oil/gas revenue for the upkeep of the kingdom’s cultural institutions.

1. To secure a specified, constitutionalised share of the oil/gas revenue for the upkeep of the king and  a constitutionally agreed number of the royal family.

1. To secure a package of compensation resulting from the use of kingdom land on which exploration and drilling of  oil and gas is taking place. This is based on  the principle that, traditionally and culturally, all land in Bunyoro-Kitara  belongs to the kingdom, and to the Omukama in particular. Revenue secured under this premise to go to the kingdom Trust Fund for use by the kingdom for the promotion of the cultural  insititution.

How the delegation  collected views.

1. We made extensive informal and formal consultations from the general public, more particularly from elders, kingdom chiefs like the abatongole, ab’emiruka, ab’amagomborra and ab’amasaza chiefs.

1. We consulted various politicians, opinion leaders, councillors at all levels, that is, at miruka, gomborra, county and district councils. We also consulted members of the Orukurato Orukuru orw’Obukama bwa Bunyoro-Kitara.

1. We perused through the press, both local and international, which contributed plenty of ideas on  this subject. We made full use of letters to the editor page and from articles in the media. We benefited from Radio and TV Talk Shows which covered the subject of oil very extensively.

1. Last, and most important, we surfed through the internet. It provided us with plenty of valuable background information material on the experience of other countries, especially African countries, where oil/gas was discovered and how those countries  went about allocating oil revenues to different stakeholders.

1. Specifically, the internet educated us on the problems, wrangles, disputes including violent clashes originating from  the callous, criminal destruction of the environment by oil drilling companies. From the internet we learned how civil wars, guerrilla wars, violent demonstrations  based on unfairness in the distribution of oil revenues and demands to protect the environment were started. The internet also revealed to us how insensitive corrupt governments unashamedly steal collossol amounts of public funds realized from  oil revenues, etc.

1. The internet educated us on how and why some countries where oil is discovered have ended up becoming poorer than they were before the discovery of oil.

1. The internet also showed us how some countries like Indonesia, which used oil revenue wisely and transparently, benefited by becoming modernized and hugely prosperous.

1. Surfing on the internet revealed that in order for the revenues from oil and gas exploration to be beneficial and a blessing to the nation, the leaders of those  governments must be ready to adhere to the rule of law and order, respect human dignity, account for every penny earned from oil exploration(accountability), be transparent, and, generally, operate government machinery on truly democratic principles. It was revealed that, “there cannot be transparency without the disclosure of all state accounts, including oil revenues.”

Conclusions.

We concluded that while in Uganda there should be a uniform formular for dealing with all cultural institutions in Uganda as far as the allocation of oil revenue is concerned we however got convinced that  Bunyoro-Kitara deserves a special allocation based on the following  grounds:

Why Bunyoro-Kitara needs a special share allocation.

1. Historically. Because of Bunyoro-Kitara’s resistence to colonialism on behalf of Uganda, the kingdom suffered a most severe beating in the nine-year war, 1890-99 where she lost over two million people.

1. Omukama Kabaleega’s extensive kingdom was reduced to less than one quarter through the loss of Ituri region (eastern Congo) and the seven lost counties which were annexed to Buganda in the Anglo-Ganda 1900 Agreement. We have not recovered those  counties up to day (October 2006).

1. During the war against colonialism Bunyoro-Kitara’s vast wealth was pillaged leading to untold poverty which the kingdom is still experiencing up to today.

1. Bunyoro-Kitara suffered scorched-earth war strategy by the colonialists which punished the population regardeless of age, sex, etc.

1. The kingdom was depopulated while nearly all cattle were killed in a vicious deceptive exercise of vaccinating them against disease. This led to loss of not only income but also to loss of life-saving nutrients which affected social life and a working culture which is being experienced up to today.

1. The colonial government since 1900 up to independence time, and the subsequent governments, inherited administrations which implemented policies meant to keep Bunyoro-Kitara backward. These were manifested in policies like purposeful refusal to introduce cash-crops in the kingdom.

1. Because of the policies of keeping Bunyoro-Kitara backward facilities like education took long to be brought to the kingdom. As a result today our schools, at all levels, in Bunyoro-Kitara are always at the bottom of the ladder.

1. Bunyoro-Kitara’s special or unicque position in Uganda is recognized even by Parliament which allowed President Museveni in 2002 to solve the Kibaale District chairmanship wrangle between Banyoro and Bakiga to use  unprecedented measures which required an elected chairman, Fred Rulemeera to step down in favour of an indigenous Munyoro, compromise chairman.

1. President Museveni’s historic memorandum to Parliament in 2002 in which he asserted Bunyoro-Kitara’s unicque position read, in part, “This arises from the fact the Banyoro, heroically, bore the brunt, under their king Kabaleega, of resisting colonialism. It took the British nine years, assisted by the Baganda, to defeat Banyoro. The post conflict terms were all against the Banyoro. The wars had depopulated the land, killed all the cattle, etc. Then in the case of Kibaale, nearly a century of  Baganda neo-colonialism followed.”

1. The Uganda Constitution is vocal in its attempt to take affirmative action in favour of marginalized groups. Bunyoro-Kitara is a marginalized region because it was invaded by British colonialists using the then latest, precision weapons, and forcing the kingdom into a nine-year was which devastated the kingdom. After the war the colonial government inflicted punitive policies which kept Bunyoro-Kitara backward up to today 2006. No measures were taken to redress the results of the British invasion. In article 32 (1) the Uganda Constitution  says,” Not withstanding anything in this constitution, the state shall take affirmative action in favour of groups marginalized on the basis of gender, age, disability or any other reason created by history, tradition or custom, for the purpose of redressing imbalances which exist against them.”

1. Following in his father’s footsteps the Omukama of Bunyoro-Kitara, Solomon Gafabusa Iguru, on behalf of the kingdom has instituted a case against the British Government. He, like his father, accuses its predecessors of invading Bunyoro-Kitara and engaging in a nine-year war in which they killed over two million Banyoro, pillaged her wealth, committed atrocities, exiled Omukama Kabaleega for 23  years  without trial. From the time the British captured Omukama Kabaleega in April 9, 1899, Bunyoro-Kitara was treated like an occupied territory. Hence sentencing the kingdom to abject poverty and to policies that have  kept her backward ever since. Now Bunyoro-Kitara wants redress of these wrongs.

1. The indigenous Banyoro of Kibaale district, as the most immediate victims of British punitive measures after the war, also instituted a case against  Her Majesty the Queen of England’s  Government, the Governments of Uganda and Buganda, etc, accusing them of failure to implement the Buyaga and Bugangaizi 1964 Referendum Act, grabbing their land, and a host of other accusations.

1. The above 12 points clearly show  that  Bunyoro-Kitara has received a raw deal all along. Bunyoro-Kitara seeks acts and measures to redress that injustice.

Grounds for allocating shares of oil revenue  to cultural institutions (cultural leaders).

We concluded that cultural institutions (cultural leaders) where oil/gas is discovered be allocated specified, constitutionalised shares of oil revenues calculated on an agreed formular based on the following grounds:

1. Historically, cultural institutions were, and are still a symbol of unity of that particular indigenous community. They are a motor that drives the engine of development, peace and stability. They promote togetherness and create a psychological atmosphere where people develop economically and live together harmoniously.
2. Cultural institutions create and promote a sense of belonging, becoming a source of pride and prestige resulting in a culture of hardwork to maintain that status-quo.
3. The Uganda Gov’’t recognizes the importance of cultural institutions  hence their restoration and constitutionlisation. Today the Uganda Gov’t recognizes nearly ten kingships.
4. A further sign of Gov’t recognition of cultural institutions is the recent provision of Shs five million for every cultural leader’s personal upkeep payable every month.
5. The Uganda Gov’t recognizes the existence of cultural governments composed of kingdom officials headed by kingdom prime ministers who head kingdom cabinets. They have cultural properties including parliaments.
6. While the Uganda Gov’t has shown willingness to support and promote cultural institutions it has been handicapped by lack of funds.
7. Hence the discovery of oil is a blessing in that revenue from oil should be used to develop and promote these cultural institutions.

In case oil revenue disappears.

While we propose revenue from oil should be used to develop, promote and upkeep these cultural institutions, the Uganda Government should put in position alternative mechanisms to continue providing the same service and funding to these cultural institutions even if oil revenue disappears for one reason or another. They should be constitutionalised to become part and parcel of the Uganda Constitution regardless of whether there is oil revenue or not

Elsewhere we propose a reserve fund in which to save money to be resorted to when oil wells dry up. This fund should be called upon to fund cultural institutions when the oil wells dry up. We do not suggest that our oil wells are going to dry up in the foreseeable future, but we want to think that oil is a commodity which is exhaustible.

The case for constitutionalised, oil revenue allocations to local (indigeneous) communities where oil/gas or other minerals, are located.

In this category are  found local communities,(e.g. Ogonis, Banyoro, West Nilers, Bakonjo and Bamba) in whose region  oil (natural resource) is located. They should be allocated a  share on the ground that this is their God-given, natural birth right. God chose to locate this natural economic resource in their locality so that, in God’s wisdom, the inhabitants  may enjoy a  gift from Him.

It is pertinent to quote columnist, Charles Onyango Obbo’s article in The Daily Monitor of  Sep, 27, 2006, where the headline said,  “ The Banyoro deserve a big slice of Bunyoro oil.”

It reads, “The Banyoro are fighting for a share of the oil wealth that they hope will come from the discoveries being made on their land.”

He asks, “ So, do the Banyoro have “ tribal rights” to the oil, or are the finds “national resources” that belong to all Ugandans ?

The answer, based on natural law is that, Banyoro have natural (tribal) rights. Hence their claim to a constitutionalised slice of the cake.

However, according to pan-Africanists, or the elites, the oil is a national economic resource over which Banyoro have no right. This elitist version is wrong and against nature. Experience has shown that this pan Africanist, elitist version  has been the source of wars, riots, executions, demonstrations and deaths.

Let the natural law version be explained further. In an African village, a homestead setting,  there usually naturally grows mushrooms, or ant-hills from which swarms of white ants sprout. The mushrooms and swarms of white ants are  income-earning very appetizing delicacies. They are God-given and belong to the head of that family by virtue of their location in his homestead. However, based on our traditions, the neighbours are always,  culturally invited to pick some of the mushrooms and white ants.

The principle here is established that the mushrooms and ant-hills are natural economic assets which must of necessity belong to the head of the family in which  they are located. But, traditionally, culturally, the head of family willingly allows the neghbours to share the natural economic assets. He does not eat alone.

In the case of oil, the owners of the locality on which the natural economic asset is located not only are allowing  the neighbours to collect oil revenues, the Banyoro are asking for only a  small, constitutionalised share of the oil revenue as a token recognition of the ownership of the natural asset.

Let us now apply the example of rich natural soils on which people privately grow cash crops like coffee, tea, cotton, bananas or matooke, rose buds, etc. These farmers are allowed to sell their produce and pocket the proceeds. The rich soils, like oil and other minerals, are a natural economic resource. If the elitist version were to be applied, the proceeds from the sales of coffee, cotton, tea, matooke, milk, rose buds, should be claimed by the Government. But no. It’s the owners of the locality in which they are found who claim the proceeds. Therefore, the Banyoro should be given a slice of the oil revenue profits.

Concrete Proposals.

1. An international yardstick should be used to determine the percentage of share allocations to stakeholders. We resolved to leave the specific percentages to experts in petroleum policy. Bunyoro-Kitara members of Parliament are called upon to be patriotic, alert, take trouble to learn petroleum politics, study the background to oil exploration, and pursue the kingdom’s oil interests very vigorously.

It was made abundantly clear to us that the distribution, or allocation, or failure to allocate,  oil revenues fairly has been the source of wars, instability, clashes between regions, states, central or  federal and local governments, cultural institutions and or local communities. In extreme cases like in Nigeria’s Niger Delta, it has led to a civil war, and to formation of militant groups which employed military measures leading to deaths of hundreds of thousands of people. Hence the description of the discovery of oil as a curse, not a blessing.

Indeed, the Ogonis of Nigeria in the Niger Delta made a Bill of Rights in which they demand their birth rights as far as oil revenues allocation is  concerned. They mention that , “ the demand  of local ethnic minorities for a greater share of the oil revenue has  been the source of conflicts”.

It is specifically mentioned that the Biafra civil war in Nigeria, although basically originating from tribal differences, it was sparked off by the discovery of oil and the feeling by the Ibos that they were being cheated out of their birth right. The Ibos felt that they would be better off if they seceded and controlled revenues accruing from the oil in their locality.

Hence  we agreed that oil share allocations be made using an internationally agreed yardstick. We had in mind the belief that since Uganda today has over 25 petroleum experts, well versed in the politics of oil, there will be no  difficulty in coming to a nationally acceptable formular. We are of the view that with the coming of oil in the equation Uganda must embark on mature global behaviour. In any case the sheer magnitude of huge oil revenues leaves virtually no room for behaving outside of transparency.

Indeed, we felt that Uganda should benefit from the experience of other countries where oil revenues became a  curse instead of a blessing. We must avoid falling into the same abyss.

1. The Stakeholders  to be allocated shares :

(1)   Oil drilling companies;  (2) Uganda Gov’t;  (3) Districts;

(4) Cultural  Institutions.

The Cultural institutions must be made to adopt a culture of modern, strict management of public funds.  They must streamline their administrations so that there is transparence and accountability. They will be required to adhere to rules of proper modern management of public funds.

1. Since in today’s constitution there is no provision for cultural institutions to get share allocation of minerals ten feet below the earth’s surface,  we propose that Legislation to enable cultural institutions to be allocated constitutionlised shares be embarked on. We are therefore, proposing that legislation be introduced to amend the constitution to enable cultural institutions to get a share of the oil revenues.

1. A packged compensation for the kingdom. This is in recognition of the fact that the oil is being drilled on kingdom soil. Bunyoro-Kitara kingdom is the natural custodian of land.  This to be regardless of whether the kingdom owns that  piece of land on which the drilling is taking place. In Bunyoro-Kitara all land customerly, culturally belonged to the king.

1. A  constitutionalised share for the kingship institution (Cultural  institution). This one to operate, and to maintain the cultural institution, like promoting culture. To cater for things like kingdom vehicles, buildings, upkeep of kingship buildings, staging empango celebrations, promotion of mother tongue (Runyoro-Rutooro). However, since the promotion of mother tongue is also guaranteed in the Constitution, and indeed, it is to be developed and taught in the country’s education system, a formula will be worked out whereby the department of education will work hand in hand with the cultural institution in the promotion of this aspect of culture.

1. Omukama’s personal funding, Today the cultural leaders are getting Shs 5,000,000 as personal upkeep. We propose there be specifications as to what it is actually meant to cover.  We propose that the royal family and  princes and princesses be allocated a specified, constitutionalised share. The number of princes and princesses to benefit from this to be decided by Parliament following an internationally agreed formular.

We resolved that in view of the fact that believers in cultural institutions today form the majority of Ugandans, in the event that non-cultural regions object to spending funds on cultural institutions, the status quo should stand.  This is because we have already shown that cultural institutions play a vital role in promoting the development of peace and stability of the nation. Cultural institutions are an invaluable asset who do more good than harm.

1. Jealous protection of the environment.

(a)    We observed that oil drilling companies, since they are foreign bodies, tend to be solely driven by the need to acquire as much  wealth  as possible from the oil they drill.

(b)   Judging by the performance of Shell in Nigeria in the Niger Delta, oil companies are not mindful of the destruction of the environment they do.

(c)    As a result the local population who are the immediate sufferers of the destruction of the environment rise up in arms to protest the destruction of their environment. The local communities see the oil drilling companies as killers.

(d)    Hence the hostility, and in extreme cases, the demand by the local communities to do away with oil drilling. This hostillity results in clashes between the indigenous population and the government and oil companies  on the other side.

(e)    The Uganda Constitution has provision to protect the environment. But oil companies using their control of vast sums of money corrupt officials who ignore drilling companies destruction of the environment.

(f)    We propose that since the discovery of oil in Uganda is still in initial stages, efforts be made to cultivate good, friendly public relations between the oil drilling companies and the local, indigenous communities. There should also be an effective line of communication so as to avoid unnecessary misunderstandings.

(a)The most glaring example of the destruction of the environment which resulted in deaths of thousands of the local population is in Nigeria’s Delta Region where the local tribes, the Ogonis, faced liquidation until they rose up in arms against the oil drilling companies.

(b) The destruction of the environment by Shell-BP is summed up in what Ken Saro-Wiwa said, “Our rivers, rivulets, and creeks are all covered with crude oil. We no longer breathe the natural  oxygen, rather we  we inhale lethal and ghastly gases. Our water can no longer be drunk unless one  wants to test the effect of crude oil on the body, we no longer use vegetables, they are all polluted.”

(c) Shell was seriously threatening the well-being of the population, and even the very lives of the Ogoni.”

(d) The environment destruction reached such heights that the Ogonis formed an organization to protect their environment  so that the tribe may not be liquidated by the destruction of their environment. They called it, “Movement for the Survival of  Ogoni People” (MOSOP). Its president was Ken Saro-Wiwa who was executed in 1995 together with nine others resulting from their fight to protect their environment. One of the first things their organization  did was to form the,’Ogoni Bill of Rights ” which demanded,  a fair share of oil revenue for the Ogonis and control of all oil revenues in the locality.

(e) MOSOP leaders argued that, “Oil development had led to the degradation of the environment, health problems, deterioration of fishing grounds and genocide of the Ogonis”.

(g)   We therefore recommend :

(1) Banyoro patriotic personnel qualified in petroleum industry be included on the national environment assessment team. This is meant to guard against employing personnel who might be hostile to Bunyoro-Kitara, like the British colonialists who in 1906 killed cattle in Bunyoro-Kitara by maliciously administering poisonous drugs which killed nearly all our cattle.

(2) Environment assessment be extremely transparent, and the public be allowed to follow all steps in place to observe preservation of the environment. Nema should be made to avail all steps being taken to preserve the environment.

8.       Visible benefits to the peasantry.

Bunyoro-Kitara has been living a very peaceful, settled life where cultural and social life went on uninterrupted by modern developments like displacing whole villages to give way to industrialisation and modernization. However, with the discovery of oil everyday life of the ordinary peasants is going to drastically change.

In order to get ready and to prepare for the changes far-reaching measures must be taken to equip the general population to be able to cope with the changes. Most important measures will be the following:

(a)     Education. As already mentioned above, the punishment the colonizers gave to Bunyoro-Kitara was the denial of education facilities. Todate education standards in the kingdom are lagging behind the rest of the country.

(b)    Therefore, we recommend education standards be raised by addressing the causes that keep them low, mainly, acquisition of qualified teachers who will be motivated so that they may concentrate on the professional performance of their  duties.

(c)     Provision of education materials like school buildings and scholarstic materials.

(d)    Crash progammes to sensitize parents to the need to value education so that they encourage their children to go to school and to assist them to perform better.

(e)     Promotion and development of a reading culture coupled with the introduction of using mother tongue, Runyoro-Rutooro, in primary one to three as programmed by the education system.

(f)     This will require provision of books in Runyoro-Rutooro and the  holding of refresher courses for mother tongue teachers.

(g)    promotion of culture through development of cultural activities like encouraging  staging of cultural gala and  Empango, ceremonies and other traditional songs and theatre .

1. Establishment of a national reserve fund. Since oil is a perishable commodity which might disappear any time, even if it may take a 100 years, the country should create a reserve fund in which a sizeable percentage of oil revenue should be deposited and stored away for use if or when the unthinkable takes place.

We have already suggested the same reserve fund be allocated to the cultural institutions for use in case of some unusual occurrence.

1. Protection against corrupt leaders. Examples of  corrupt leaders misusing oil revenue are in abundance. The case of Angola and Sudan come to mind. It  is reported that corrupt leaders use oil revenues  to wage wars and to amass personal wealth.

The result is in countries where corrupt leaders are in power, the oil wealth is used extravagantly or even uselessly, the country ending up becoming poorer than it was before the discovery of oil.

10.  Establishment of democracy and rule of and order.

We, therefore, recommend that the Uganda Gov’t pay special attention to the observation of the rule of law and order. And, most important the government must follow democratic institutions where the government of the day will be truly accountable to the electorate.

13. Establishment of transparency.

The discovery of oil is bound to introduce a new era in Uganda. Gone are the days of one-man rule where the decisions of one person are final.  The sheer enormity of the oil funds  will be too much to be controlled by one person. Hence the need for highly qualified technocrats in money matters.

Indeed, it will be in the interests of the population that this enormous amount of funding be used wisely so that every citizen of Uganda benefits. However, benefits will go astray if the funds are not used wisely and transparently. Angola is an example where oil revenue is controlled by one person and, as a result, the peasants have  become poorer since the discovery of oil.

And to quote, Eunice Musiime, the Head of Department, Policy and Advocacy, in the Uganda Law Society, “Experience has shown that the oil sector is prone to mismanagement and abuse because of the magnitude of the revenues at stake. Uganda has suffered from corruption in public offices for a long time. Hence if significant efforts are not undertaken to improve transparency and fight corruption in all sectors, oil discovery will not be blessing but a curse.”

She adds, “ There is an urgent need for public debate about revenue from oil and the allocation of other resources. The Government needs to make public all information on production and revvvenue, and any agreement tha may have been entered into in regard to sharing of revenue with the  exploring and mining firms.

“Furthermore,, as a basic principle of fiscal transparency, all government revenues including those deriving from oil should be explained in the national budget.”

“In order  to ensure that oil discovery does not turn into a curse, some of the measures must include strengthening of transparency in the budgetary process by full and timely transfer of oil revenues, encouragement of public scrutiny and debate, and clarification of the key elements of production and revenue sharing  agreements.”

Crash Education  program for Banyoro.

1. As mentioned above Banyoro have since 1900 been under punitive government policies by the  British colonialists to keep us underdeveloped and backward. As a result we lack  qualified personnel even in the very low trades. It is worse in profoessional in sephers like the petroleum industry. President Museveni mentioned during his October 9, 2006 independence anniversary speech, that he wants the local population to play as much role, and with as much effect,  as possible. This is a much appreciated policy. But Bunyoro-Kitara does not have high calibre personnel qualified in the petroleum industry. And since the region  has been lagging behind in the education sector, there is need for a crash program to educate peasants even in low, or average trades.

We, therefore, recommend that a crash education programme be initiated to educate Banyoro on how to fit into the changing equation first at the lower levels so that the population who will be displaced may learn new survival skills which will enable them to fit into the new equation.

Secondly, we need highly qualified personnel, on the level of the 25 President Museveni talked about in his independence speech. These should be well versed in the highly specialized petroleum industry. Otherwise, we shall not have personnel capable of  monitoring the goings on in the exploration and drilling of oil.

Henry Ford Miirima. hmirima@mail.com

Secretary to the the-man kingdom oil formularization committee.