Energy Minister Irene Muloni and other officials appear before the parliamentray ad hoc committee on energy recently. PHOTO BY GEOFFREY SSERUYANGE

Uganda risks losing its assets abroad if the government defaults on the Concession Agreements with power distributor Umeme Ltd, Parliament’s ad hoc committee investigating the energy sector has said.
MPs said in case the government defaults on its obligations stipulated in the agreements, and Umeme sets out to recover its investment, it could attach Uganda’s properties because it ‘waived diplomatic immunity on its foreign properties’.
They said this during a meeting with the Minister for Energy, Ms Irene Muloni, yesterday at Parliament.
“This is the only Agreement we know of where a government waives the diplomatic immunity on its assets,” said Mr Jacob Oboth, the chairperson of the committee.

Mr Medard Sseggona (Busiro East, DP) said this was a ‘constitutional and statutory matter’.
He added diplomatic immunity should not be waived in this case.
Through the Support Agreement, government is to support Umeme’s performance of its obligations to design, insure, rehabilitate, operate and maintain the distribution system for 20 years
Mr Simon Mulongo (Bubulo East, NRM) said the Clause reduced the sovereignty of the Uganda to the level of a private company, and that the government could go and appear before a tribunal abroad.
“In other words, we are no longer at the level of civilised nations,” added Mr Mulongo.
He added the agreements are shrouded in secrecy giving the impression they could have been drafted by the same people who drafted the oil Production Sharing Agreements.
Ms Muloni said at the time the government committed to the Concession Agreements, the prevailing situation was not so favourable.
“May be that was not the best. But at the time given the circumstances, that was the best. But the concession provides for a review. We could renegotiate,” she said.
In the past, State Minister for Privatisation Aston Kajara has said the Lease and Assignment, the Support and the Power Sales Agreements were a ‘liability’ to the government.
Mr Kajara added that the Government could push for Uganda’s interests when the concession comes up for review in February 2012.