EAC govt lawyers cautioned against bribery in oil contracts negotiation

Public sector lawyers in East Africa have been urged to avoid undue influence and consider the public interest when negotiating contracts with investors in the extractives sector. Speaking at a seminar for regional public sector lawyers and law professors on Thursday in Dar es Salaam, Tanzania, Mizengo P. Pinda, the United Republic of Tanzania Prime Minister, observed that well-drafted and carefully negotiated mining exploration and development agreements are key to ensure countries and communities near resource-rich areas benefit from revenue earned from the extractives sector. “Some ill-conceived oil and mining agreements have in the past led to public outcry, forcing governments of affected countries to seek redress through re-negotiation, which is often difficult,” said the Prime Minister, while opening the five-day training seminar organised by the East African Development Bank (EADB) and facilitated by global law firm, DLA Piper and New Perimeter. The training was designed for public sector lawyers and law professors involved in negotiating transactions and drafting agreements on behalf of governments in extractive sectors and other big projects. This was the second training to be held in the region this year after the inaugural one held in Kigali, Rwanda in March. It brought together senior public sector lawyers from Kenya, Tanzania, Rwanda, Burundi and Uganda. Pinda also said ordinary people are major stakeholders in the mining business and must be put into consideration when negotiating contracts. He advised lawyers to distance themselves from bribes and ensure fairness in the natural resources sector, noting that Africa remained poor despite having huge resources partly because of badly negotiated mining agreements. “Only one third of mining contracts benefit the African continent,” he said. Pinda suggested African countries should stop granting tax exemptions to foreign firms so that the money the taxes go to economic development. Oil and gas discoveries have been made in Uganda, Kenya and Tanzania, while Rwanda is also exploring for oil and gas. The region is also rich in other minerals and rare earth. Speaking at the workshop, EADB director general, Vivienne Yeda, urged Africa to adopt dynamic and creative fiscal regimes that can be adapted to changing economic and social situation of citizens. The function was also attended by George Masaju, the United Republic of Tanzania deputy Attorney General, Dr Servacius Likwelile, the Ministry for Finance permanent secretary.

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EAC govt lawyers cautioned against bribery in oil contracts negotiation