District administrators in Uganda have asked government to review the oil revenue sharing legislation as a precursor for proper management of the proceeds from the nations budding oil sector.
Speaking at a workshop in Kampala, the lower government administrative officers cited The Public Finance Management Act, which they said poses challenges in the operationalization of the oil sector, The Daily Monitor reported.
The act which became law in 2003 allocates 93% of oil royalties to the Central government while leaving a minimal 7% to be shared among districts in the oil locality. The law also provides for collection, deposit, management, investment and expenditure of revenues accruing from exploitation of petroleum resources.
The president of the Uganda Local Governments Association, Fredrick Ngobi Gume, said the redefinition of the revenue allocation models need to be made clear before production of oil starts.
However, Commissioner in Uganda Ministry of Finance ministry, Planning and Development Godwin Kamukama defended the law, saying it was a good step towards fiscal discipline.
Godfrey Kuruhiika, the Lwengo District chief administrative officer asked government to think amending the law which he said contravenes with the principle of Decentralization. “Sections of the law erode the principles of decentralisation (in the Local Government Act)”, he said