Former Energy Minister Syda Bbumba shocked the public and the MPs on Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (Cosase) when she revealed that she signed the contentious PSA without bothering to peruse through.
Bbumba signed a contentious Production Sharing Agreement(PSA) that allowed Tullow a $157m(Shs568b) tax waiver for an out of court settlement involving Uganda and the British oil firm.
While appearing before the Parliamentary committee that is investigating wide-range of irregularities in the Oil sector that she signed the controversial PSA after it had been approved by the Solicitor General, tabling an October 3 2001 letter as evidence of the SG’s approval.
Article 23.5 of the PSA, that is the source of trouble for Ms Bbumba, states that: “The assignment or transfer of an interest under this agreement shall not be subject to any tax, fee or other impost or fee levied either on the assignor or assignee in respect thereof.”
After Ms Bbumba approved the PSA between Uganda and Tullow, tax payer’s lost $157m(Shs568b) after a tax waiver was extended to Tullow to clear an out of court settlement.
The Committee will later this month prepare a report detailing the fate of Ms Bbumba and other government officials that have been faulted during the inquiry.