Weekly Roundup 12/10/12

Uganda’s Edgy Relation to Ghana: The Susceptibility of Uganda to the Threat of Irresponsible Corporate Activity

Uganda has increased its extraction of gold and communal benefit could be within its grasp but a dilemma has no arisen in how to properly sustain its processes and dispersion of wealth amongst the community. In relation, Ghana has been mining gold form its western territory for decades, however, the western area is ironically the poorest in the whole country. The area is fraught with environmental degradation through the contamination of local waters caused by mining activity. AngloGold Ashanti is currently working in the region. Could Uganda become affected by the same pillaging negligence as Ghana?

As stated by Stephen Nuwagira, Senior Sub-Editor for Vision Group of the Governance of Extractive Industries blog post, “Problems come when law-makers draft policies that do not properly guide on the use of the money accruing from the resource or how to exploit the resource sustainably”, (Nuwagira 2012). Already we are seeing an increase of corporate unaccountability as providers contracted by Tullow Oil are contaminating local streams and fishing waters of Hoima, Uganda and have done nothing upon the request of the local people to responsibly remove the contamination from the waters in which residents use for home consumption. Land takeovers are prevalent in the regions of heavy oil activity and frequently go on without adequate compensation for the land. The National Environmental Management Authority (NEMA) has been mentioned as developing a national oil spillage contingency plan but with the Albertine Graben being such a hot-spot of ecological importance, there is skepticism that the plans will fall short of their obligation towards the people.

The fact of the matter is that although these multinational corporations proclaim their watchful eye of the well-being of both the people and the environment, the truth is that there has not been one single company within Africa to sustainably and spotlessly contribute to the economic plight of any region affected by the resource curse. The environmental devastation and degradation of the local fishing communities have been immense cause for concern but are simply not addressed. We must now keep a close eye on Uganda and the operations of the companies guaranteeing they are “doing their best” in benefitting the true well-being of the region’s communities.

GOXI (Blog Post) Oil: Can Uganda avoid Ghana's gold curse?

Posted by Nuwagira Stephen on November 21, 2012 at 12:30

Opaque Transparency: Issues in Transparency Involving Digital Contracting Network

The South African Mineral Resources Administration Online System (Samrad) was officially put into place to improve the application process of,  “prospecting rights, mining rights and mining permits through the online submission of the requisite documentation, thereby avoiding the often convoluted manual application process”, (Greve 2012). This process provides fluency among acknowledging the parameters of a certain industry’s territory within a region. This means that the system is now susceptible to “double-granting” mineral rights and providing a gap in which the corporations can now wave accountability upon their involvement within mining sectors. To reiterate – TWO corporations can be pillaging in a region that has been declared to only host ONE.

With over 3,500 applications for mining rights submitted, there is no doubt that the system is being used even amongst criticism of its inability to handle the amount of requests. This gap in validity is dangerous for the communities of these regions as they are now more susceptible to the inability of registration processes to mandate a predominant industry in the area. The Department of Mineral Resources (DMR) cannot go beyond their powers and limit a certain contract from being passed and this system of incredulous contracting agreements will continue unless adequate measures are taken by the DMR to re-stabilize the contracting agreements within the area. Until then, transparency takes the back seat to the time it takes to register these corporations properly.

 

Natalie Greve Mining Weekly Creamer Media: 30th November 2012 - Electronic Source

Accessed 12/10/12

            http://www.miningweekly.com/article/concerns-that-south-africas-flawed-online-mining-cadastre-portal-could-be-constricting-an-already-stressed-mining-sector-2012-11-30

Our Progress

Policy forum

On Friday September 21, in commemoration of the international Day of Peace, WAOW organized its first in a series of policy forums designed to foster debate and generate knowledge on natural resources and conflicts. The seminal event brought together policy makers, academics, students and members of the NGO community in the Greater Washington DC area to explore emerging trends in resource-based conflicts. Rebecca Sutton highlighted the significance of the day, which she pointed out is a day to remember people and societies that find themselves confronting issues of conflict an under-development in many parts of the world. The keynote speaker Ambassador (ret.) Herman Cohen, Assistant Secretary of State for African Affairs (1989-1993) outlined the opportunities, challenges, strengths and limitations of big power peacemaking in sub-Saharan Africa in general and Mozambique in particular.

Drawing comparisons from his different duty stations, the ambassador outlined why peace

processes in resource-rich nations tend to fail when compared to their resource-poor neighbors. The financial windfall from the sale of the natural resources, lack of transparency and accountability, lack of civic participation all contribute to the so-called ‘resource curse’. But proactive peacemaking, as in Mozambique can yield positive results. Professor Lisa Breglia, of George Mason University, who has undertaken extensive research on the linkages between cultural and natural resources and conflict in the Americas outlined some lessons that emerging petro-regions such as West Africa can learn from the other oil producing regions. Professor Breglia pointed out that proactive civic engagement is vital to building a critical mass for the protection of cultural and natural rights.

In his presentation Dr. Vandy Kanyako highlighted the unique circumstances into which petro-culture is taking roots in West Africa. The region is enjoying a semblance of peace after the civil wars of the 1990s. If properly managed oil should help to integrate the region into the global economy. For that to happen however both governments and oil companies should be more transparent about their dealings in a politically combustible region. Stephen Woodward in his presentation highlighted various ways in which groups and individuals can remain engaged in the issues around oil and transparency. A groundswell of support and consumer awareness is critical to addressing the demand and supply side of transparency and accountability in the extractive industry.

• Engaging Civil Society Practitioners

In order to foster a mutually reinforcing relationship and promote collaborative partnerships between
CSOs in the region, the West Africa Oil Watch organized a series of informal consultations with civil society thought leaders about growing significance of petro-culture in their respective localities. Participants, mainly from civil society organizations and consortiums, were drawn from Liberia, Sierra Leone, Ghana, Guinea, Cameroon, Tanzania, Egypt and Uganda. Using traditional and new media (Facebook, email, phone, skype) participants were engaged directly in order to gain a first hand insight in ways of building actionable strategies for engaging the oil sector.

• A few key lessons that emerged from the various consultations include the following:

The civil society sector, while active, lack the knowledge and organizational capacity to realize their full potential to further sustained engagement with the oil sector The sector is too new in many of these countries and as such civil society is only now playing catch up, especially as negotiations and consultations between governments and oil companies are at an advanced stage. Authorities are content with sidelining civil society and other stakeholders, and in some cases are against any form of organized civic engagement. There is lack of coordination between various civic actors in the region.

On the basis of these findings there emerged the need for regular consultations as a way to provide the platform to engage various actors working on transparency and accountability issues in the region specifically. WAOW will be organizing a series of training programs in the near future to build the capacity of civil society actors active in transparency and accountability issues in the region.

Fostering Transparency and Accountability Through Enhanced Civic Engagement

ABOUT WEST AFRICA OIL WATCH (WAOW) 

WAOW is an independent Non-governmental Organization whose mission is to foster transparency and accountability in the region’s opaque oil sector through enhanced civic participation. It is the first civil society-led initiative dedicated solely to exploring the nexus between the increasing importance of oil and its implications for peace and stability in one of the World’s most fragile regions. We address the demand and supply side of the ‘oil complex’ by working with policy makers and grassroots communities to ensure that West Africa’s oil resource benefits its 240 million citizens. We provide technical assistance, raise consumer awareness, educate, and advocate on behalf of communities negatively impacted by the industry. Our goal is to empower and improve the quality of life of oil-affected communities in one of the world’s most conflict ridden regions.

          
WEST AFRICA OIL: FACTS AND FIGURES

• West Africa accounts for 1/3 of world’s new oil discoveries 
• The region currently provides 15% of US oil needs, set to increase to 25% by 2015 
• Some 500 oil and gas companies from all over the world operate in West Africa, including companies from China, India, Malaysia etc. 
• Its oil is mostly "sweet" crude, with low sulphur, considered easier/cheaper to process
• More than 50% of the citizens of the region’s biggest oil producers--Nigeria, Gabon, Equatorial Guinea and Angola – live on less than $2 a day 
• Angola—along with Saudi Arabia—is China’s largest oil supplier 
• President Obiang of Equatorial Guinea is Africa’s richest man, worth US $65 billion 
• Exxon Mobil, Chevron-Texaco and others have spent about $10 billion annually towards exploration of oil in West Africa 
• Nigeria is the largest source of EU oil imports 
• Angola’s ranking in Transparency International’s 2009 Corruption Perceptions Index is growing worse, from 158th out of 180 countries in 2008 down to 162nd in 2009

THE ENVIRONMENT: The discovery of oil has major environmental implications for the coastal communities in particular, whose way of life and economic well being have been subjected to growing stress from natural and human-induced changes. The development of infrastructure, improper use of their resources and extensive contamination by pollution, have all exacerbated the degradation of the West African coastal zone and marine environment. Oil is only going to accelerate the region’s degradation.

CONFLICT & STABILITY: 

West Africa is one of the most unstable regions in the world. Liberia, Sierra Leone, Cote d’Ivoire, Nigeria, Guinea Bissau and Guinea, have all experienced civil war and or various forms of political instability for a portion of the past two decades. These regional wars in the 1990s in particular crippled public and private institutions, handicapped governments, stifled economic development and severely weakened social networks. The competition for oil will renew old rivalries and add a new dimension.

HUMAN RIGHTS AND HUMAN SECURITY: Since the conclusion of its many violent wars, West Africa has made tremendous progress in the protection of human rights. But the discovery of oil will complicate issues. The relationship between human rights abuses and natural resources is well documented. Civilians have been displaced by governments to make way for oil companies, or in some cases they have been shot at and killed when they refuse to relocate or push for compensation. In Nigeria the way of life of the coastal communities have been ruined due to the poor management of oil. The most egregious human rights violators are also the region’s richest oil producers.

CORRUPTION AND GOOD GOVERNANCE: 
Oil ruts democratic institutions like no other commodity. It strengthens the hands of leaders who use the proceeds to reward cronies, quash any form of dissent and crush the opposition. Because its wealth is ‘concentrated’ (passes through only few hands), it is highly susceptible to misdirection.

CIVIL SOCIETY: Civil society has a significant role to play in ensuring a fair and responsible oil extraction that promotes peace, respects human rights and safeguards the environment. A vibrant civil society is critical to the strengthening of regional frameworks for the protection of human rights, justice and the rule of law through the cultivation of citizen capacities and multiple avenues for making collective decisions and organizing grassroots actions in an oil industry renowned for its secrecy.

To learn more and for ways to get involved please visit www.westafricaoilwatch.org