Irish Aid, Tullow Oil and Uganda

Quite a storm erupted in the Irish media last week when it was reported that four million euro of Irish Aid funding to Uganda had gone missing in a suspected fraud. The money was destined for spending on education, policing and continuing the fight against AIDS and HIV. Seventeen officials in the Office of the Prime Minister, the Central Bank and the Ministry of Finance have been suspended and two others have been charged. (1)

Foreign Minister, Eamon Gilmore, immediately suspended further aid payments and dispatched a team of Irish officials to Kampala to investigate the allegations of fraud – which were first reported to the Irish government by the Ugandan Auditor General.

There the story rests for the moment.

However, digging a little deeper into the history of Irish aid to Uganda reveals a rather more complicated picture than the unfortunate Irish citizen being ripped off by some crooks in the Ugandan administration.  The current Irish aid programme to Uganda was initiated in 2010 while Micheal Martin was the Minister for Foreign Affairs.  It is worth 166 million euro over a four year period.   It came at a time when intense negotiations were in train between international oil companies and the Uganda government over contracts to develop the country’s burgeoning oil industry. One of the major players involved was and continues to be Tullow Oil. (2)

Tullow was the brain child of Roscommon born accountant Aidan Heavey who founded Tullow Oil in 1985 while he was working in Tullow Engineering and built it up into a major international oil business over the next two decades through various acquisitions and deals all over the world.

Heavey was one of the major movers behind the establishment of the Private Sector Forum in 2004(3) which recognised ‘the need to focus on trade as a means of development’ and ‘challenged’ the Irish private sector to get involved.  The initative at government level was driven by Fianna Fail’s Michael Kitt, then Minister for Cooperation and Development, and, coincidentally, a shareholder in Tullow Oil.

A not for profit organisation named Traidlinks, mainly funded by public money from Irish Aid, was established. (4)   The board consisted mainly of Irish executives whose companies have continuing interests in Africa and included Tony Barry of Barry’s Tea, Jim Corbett of Bewleys, Liam Fitzgerald of United Drug and Adrian Heavey of Tullow Oil.   It is interesting to note that Tullow is registered as a UK company and no longer has any particular connections with Ireland.

Curiously enough, 2004 was also the year when Tullow acquired the Energy Africa company which held an interest in oil exploration around Lake Albert. Tullow continued to expand its interest in Uganda over the following years and signed an ‘early production agreement’ with the government in 2006.

In January 2001 Tullow bought the exploration rights held by Heritage Oil in the country shortly before President Yoweri Museveni was returned to power in an election that the opposition described as fraudulent and that many international observers described as flawed.

Allegations of bribery and corruption emerged in December 2010 when Wikileaks released cables appearing to show that Tullow executives had briefed the then US Ambassador to Uganda Jerry Lanier that the company had given bribes to government officials. (5)  Ugandan MP, Gerald Karuhanga, subsequently presented documents to parliament accusing Tullow of making payments to PM Mbabazi, Minister of Foreign Affairs, Sam Kutesa and Interior Minister Hilary Onek.  Tullow have claimed that the documents are forged and have released emails from the Met Police which cast doubt on their authenticity. (6)

Meanwhile, back in Uganda it appears that legislation on oil exploration remains mired in controversy in parliament because of a power struggle between internal factions. Last week the Ugandan government took back an exploration block jointly owned by Tullow, China’s CNOOC and France’s Total SA after their license expired. (7) CNOOC and Total had bought into a partnership with Tullow in February of this year for a total of 2.9 billion dollars.

Its interesting to see the amount of Irish media coverage given to what appears to be a fairly minor case of corruption in the Ugandan government while it appears that almost none has been given to huge sums sloshing about in its oil industry.  Perhaps it would be wise not to ask too many questions.

Back in September the Department of Foreign Affairs and IBEC’s Engineering Enterprises Federation launched a major new report as part of the Winning Business in Africa programme which identified over 100 new projects worth a potential 12 billion euro. (8)

With that kind of money at stake there’s unlikely to any kind of close examination into the ethics of doing business in East Africa.

PaddyJoe  November 3 2012

1. http://www.observer.ug/index.php?opt…ews&Itemid=114
2. http://www.tullowoil.com
3. http://www.dfa.ie/home/index.aspx?id=25805
4. http://www.traidlinks.ie
5. http://www.observer.ug/index.php?opt…ness&Itemid=68
6. http://www.irishtimes.com/newspaper/…314639454.html
7. http://news.yahoo.com/uganda-takes-o…–finance.html
8. http://www.irishexaminer.com/busines…bs-207828.html

Advertisements

12 Responses

  1. Enda Kenny says that “Africa is going to literally explode” in the coming year.

  2. Reblogged this on gfmurphy101 and commented:
    Comment: why are we not reading a story like this in the mainstream media??? agenda setting can also be done by paying journalists/editors NOT to write about certain things???

  3. […] Read On: Irish Aid, Tullow Oil and Uganda (PaddyJoe, Political World.org) […]

  4. Check out the links between the Thatchers – Heritage Oil- Executive Outcomes( private mercenary army) and Sandline International. If Tullow which marketed itself to investors as “ethical Oil Company”, how is it they team up with companies intertwined with private mercenary armies of colonial Eton boys?
    http://www.moneyweek.com/news-and-charts/profile-of-tony-buckingham-of-heritage-oil-46336
    http://thenigerianoracle.com/2012/07/16/british-mercenary-arms-dealer-signs-850m-nigerian-oil-deal/#more-2528
    http://www.sandline.com/

  5. Contemporary report of the Aid package signed by Martin

    http://english.peopledaily.com.cn/90001/90777/90855/7047518.html

    http://en.wikipedia.org/wiki/Miche%C3%A1l_Martin

  6. Shifting focus in Irish Aid policy to Uganda – 2007-8 http://www96.reliefweb.int/report/uganda/uganda-country-strategy-paper-2007-2009

  7. […] “Irish Aid, Tullow Oil and Uganda”, by It’s A Political World […]

  8. […] are also questions about a possible conflict of interest between Irish Aid’s Ugandan aid and Tullow Oil’s operations in […]

  9. http://www.moneyweek.com/news-and-charts/profile-of-tony-buckingham-of-heritage-oil-46336
    http://thenigerianoracle.com/2012/07/16/british-mercenary-arms-dealer-signs-850m-nigerian-oil-deal/#more-2528
    http://www.sandline.com/

    Links posted here by a visitor “Meh” along with a comment. Meh is invited to contact me via Politicalworld.org to discuss by message. Reading these articles, it would strike me yet again, that the Irish appear to be a much more beneficial than the British, who go in with their old Etonian mercenary boys, guns ablazing.

  10. Tullow Oil sees profits increase in 2012 RTE.ie
    http://www.directorstalk.com/?s=tullow
    Tullow Oil writes off $671m – Irish Times
    Tullow Oil plc Rallies On Results – Motley Fool UK
    Tullow Oil rises despite £428m writedown
    Tullow Oil commits $2bn to capex Financial Times
    Fuel Fix » Tullow CEO says

  11. […] World, One Future, the new policy document issued by Irish Aid earlier in the year. It has been pointed out that the CEO of Tullow Oil, Aidan Heavey, had pushed for the recognition of the role of the private […]

  12. […] the links in this piece (dodgy connection atm) but it may explain some of our interest in Uganda, Irish Aid, Tullow Oil and Uganda | It's a Political World Sign in or Register Now to […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: