Friday, July 13, 2012

Government denies Raila, Museveni oil deal


Government denies Raila, Museveni oil deal

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By NELSON WESONGA  (email the author

Posted  Thursday, July 12  2012 at  01:00
IN SUMMARY
Government dismisses claims by ex-aide to Kenyan premier that Museveni agreed to refine oil in Kenya.
KAMPALA.
The government has denied allegations that President Museveni and some powerful individuals around him negotiated secret oil deals with Kenya’s Prime Minister Raila Odinga over costruction of an oil refinery.
The claim that Mr Museveni could have discussed the possibility of building the refinery in Kenya rather than Uganda in his meeting with Mr Odinga is contained in a new book, ‘Peeling Back the Mask’ by Mr Miguna Miguna, a former aide to the Kenyan prime minister.
Mr Miguna Miguna claims that instead of building a refinery in Hoima, the two principals agreed that Uganda would instead transport its crude oil to Mombasa for refining and export. But Ms Irene Muloni, Uganda’s Minister for Energy, told Daily Monitor that Mr Miguna Miguna probably does not wish Uganda well.
“President Museveni is at the forefront of building a refinery in Uganda. Already, land has been secured to build the refinery, which will help Uganda add value to its oil, and, thus, earn us good income from value-added oil,” said Ms Muloni yesterday.
She said the President is fully aware there would be extra benefits such as the establishment of petrochemical industries, which would offer even more Ugandans jobs.
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Mr Odinga made a sudden trip to Uganda and met Mr Museveni at State House Entebbe, around mid-2009. During the visit, Mr Odinga and President Museveni purportedly agreed to work together in order to process and sell the oil currently being produced from Lake Albert in Uganda through Kenya.
Mr Miguna Miguna in his new book says: “Now obviously many people would say that Raila was only doing this for the economic good of Kenya. That’s possible. Why, for example, was the Ministry of Energy not involved in the discussions?”
Relations
The two officials have a history of uneasy personal relations which have warmed in recent times. 
Since the meeting in question, Kenya has discovered oil, raising the question of whether Uganda would go ahead with its own refinery or work with Kenya to expand the old refinery at Mombasa.
Energy ministry permanent secretary Fredrick Kabagambe-Kaliisa recently told MPs that Uganda would go ahead with the refinery project regardless of what happens in Kenya’s oil sector. Officials from State House were not available for comment by press time yesterday. Mr Museveni is in the UK for the conference on family planning.
Mr Miguna’s claims could not be independently verified. The official severed ties with Odinga under acrimonious circumstances but it is not clear what his motivations for writing are. 
Mr Miguna also claims that Mr Caroli Omondi, Mr Odinga’s Private Secretary, worked with either Mr Sam Kutesa or Eriya Kategeya, who have family and historical ties respectively with President Museveni, to fix the appointment with the President.
However, Mr Sam Kutesa denied the allegations, saying: “That is absolute nonsense. I have never linked the two. I think the two know each other enough. And even if I had done so, I see no problem as long as Kenya invested in Uganda’s refinery.”
nwesonga@ug.nationmedia.com

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