The Commercial Court has summoned three United Kingdom- based law firms who were the masterminds of the deal in which Tullow Oil plc avoided paying taxes worth $1.1 billion (about Shs4.1 trillion) to the Ugandan national treasury following an agreement with the central government and Uganda Revenue Authority (URA).
In the May 18 summon, court has also asked Three Curtis, Mallet-Prevost, Colt & Mosle, Freshfields Bruckhaus Deringer, Three Crown Services, together with Tullow Uganda operations PTY Limited, and its affiliate Tullow Uganda, URA and the Attorney General, to file their responses to a suit recently lodged by Jackson Wabyona, a private citizen, within 15 days.
Before the main case in which he essentially challenges the settlement deed saying it is illegal and has corruption written all over it is heard, Wabyona has asked the court to first determine a separate application he filed on May 15.
In the application, Wabyona demands that before the main case is heard, Tullow Uganda Limited and Tullow Uganda operations PTY first furnish the court with security worthy $ 1.1 billion and property comprised in 33.3 per cent stake in each of the Lake Albert development project licenses EAl, EAIA, EA2 and EA3A and the proposed East African Crude Oil Pipeline (EACOP) System valued at $1 billion.
Demands
Though Tullow in theory sold off its interests in Lake Albert to French oil giant Total E&P in a deal worth $575m (Shs2.1 trillion), in the application, Wabyona asks the court to preserve or detain Tullow’s interests in the lake.
Wabyona says court should appoint a receiver for Tullow’s stake in Lake Albert and the proposed EACOP system before the main case is heard.
“An order committing the first [Tullow Uganda Operations PTY], second [Tullow Uganda ] respondents’ 33.3334 per cent stake in each of the Lake Albert development project licenses EAl, EAI A, EA2 and EA3A, and the proposed East African Crude Oil Pipeline (EACOP) System to the possession, custody and management of the receiver appointed herein with such powers as the court thinks fit,” Wabyona’s application reads in part.
Source: DM
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