The government of Uganda is drafting a policy for managing petroleum revenues as the country prepares to start exploiting the oil deposits in western Uganda.

According to the senior economist in the ministry of finance David Mugisha all revenues from oil will be controlled by the central bank.

Mugisha says under the draft policy the central bank will have to create a special fund for the oil revenues which will be separated from the consolidated fund.

He says this is intended to know how much money has been generated from the oil production.

The policy also requires the auditor general to audit the oil fund twice a year so that people involved are held accountable on a regular basis.

Under the petroleum revenues management policy, it is proposed that the government will invest most of the oil revenues abroad.

The policy is currently in advanced stage and soon will be taken to the cabinet for approval before government tables it to parliament.

Ultimate Media