The oil and gas sector sub-contractors supplying Tilenga Project are demanding USD10 million, the amount they say was not paid for three years for their services to the main oil company, TotalEnergies EP Uganda.
The outcry was raised by one of the affected subcontractors under Three Ways Shipping Company from Hoima City. During the engagement organised by Three Ways Shipping Company, the contractors shared experiences, challenges and found solutions to the challenges affecting different implementing patterns in their operations.
Leonard Kusemererwa, the Executive Director of TERA House Uganda Limited expressed his concern over the three-year delay by the government to pay the money they have been working for.
Kusemererwa revealed that they have sixty local companies which are the sub-contractors and they are demanding USD 10 million from the government through the oil and gas regulator Petroleum Authority of Uganda (PAU).
“Different companies have been offering different services including providing lorries, sand, and food. Like me, I offer travel cars like mini buses, coasters and fuel,” he disclosed.
He said that over time, they have engaged the government up to the president through PAU, but no interventions have yielded fruit.
Kusemererwa wonders why PAU would turn its back on responsibilities to ensure that there is fair treatment within the sector.
“We have had several engagements with PAU, the regulator for the last three years but nothing has ever happened. Why is PAU running away from its responsibilities? Remember, Three Ways will not be here all the time,” he expressed.
He added: “If we were the ones not doing this to the government, we would have been even jailed,” he continued.
Grace Kojjo, the Executive Director of Kontiki Hotel Hoima also expressed her concern over PAU’s failure to thoroughly engage local investors on the right procedures as they prepare for oil and gas opportunities ahead of the first oil drop.
“As business people, we are so disappointed in PAU for failing to effectively engage businesses operating within the oil and gas sectors for the opportunities there,” she said.
“PAU, you are the overall governor in this course so make sure you take full control of your responsibilities by engaging local businesses in Bunyoro without just waiting for your contractors to implement first, then you follow,” Kojjo continued.
However, Benard Otyeno, the regional manager of TENA CONST Enterprises Limited, a building and civil engineering construction company, said that their company has no debt that it is demanding from the government.
“For us, we don’t have any debt with the government. Our company has been fully paid without fail,” he disclosed.
Christian Abimpa, the site manager of the same company TENA Hoima said that they have prioritised local content as it has always been demanded by the oil and gas regulators.
He said that they have gone as far as training youths on heavy track operation skills in order to meet the demand for local content.
Other ways to promote local content include buying machinery and renting for their workers from the local communities.
Currently, they are in the second phase of a contract building workshop after fencing Hoima International Airport.
Jane Karungi, from Albertine Mineral Water Hoima City, applauded Three Ways Shipping Company for the engagement.
Responding to the concerns, Moses Buyondo, an official from the Petroleum Authority of Uganda, said that he was not aware of the unpaid money. He requested that those complaining provide information to their contractor Three Ways Shipping Company for easy follow-up.
He, however, attributed such circumstances to failure by the companies to meet some requirements as regulated.
On community engagements, he said that the authority has always engaged communities through their implementing partners including Three Ways Shipping Company.
“As PAU, we engage communities through our contractors like this. PAU ensures that our partners like Three Ways Shipping Company engage and sensitise communities and businesses about the required standards in the oil and gas sector,” he added.
PAU is a top regulator of whoever operates within the oil sector, he stated.
Buyondo urged the local companies to register on the National Suppliers Database (NSD) to enable them to tap into the oil and gas opportunities.
“Your registration with the NSD enables us to know if your company is a Ugandan company, and also if it is a local community company. This is because we want to promote local content,” he advised.
He urged them to also register with other government agencies like the National Social Security Fund (NSSF), Uganda Revenue Authority (URA), Uganda Registration Services Bureau (URSB), among others.
Doreen Kwikiriza, an official from Three Ways Shipping Company, said that they remain committed to continue working together with all the implementing partners for better service delivery.
“As a company, we are committed to working with the qualified companies with the main targets to the local communities,” she said.
He said the engagement was aimed at bringing together their suppliers to share experiences and ideas to get solutions to the challenges affecting them.
Banabas Tugume, the Assistant Resident City Commissioner (ARCC) of Hoima cited labour issues as a bigger challenge affecting most companies.
Some companies, he said, have failed to comply with workers’ payments.
Mugume also noted drivers’ violations of traffic rules, by using roads and not adhering to road rules.
The commissioner, therefore, called for the need to prioritise continuous community engagements to enable the local communities to know what they are supposed to do in order to meet the required standards in the oil and gas sectors.
Speaking on compensation demands by local investors, Tugume called upon the affected companies to continue engaging PAU, saying PAU should also take the groundwork to understand their cries to ensure payments are deducted.
“The regulator PAU, don’t just sit in your office waiting for reports which you may not have clear clarification about. Make sure that you sometimes move to the grounds for proper ground checking so that you have those crying for compensation cleared,” he urged.
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