MPS on the public accounts committee grilled the officials in the ministry of Energy and mineral development over the closure of Jinja oil storage facility and the contract was given to a private company for management.
The committee chaired by Terego County Member of Parliament Kasiano Wadri Ezat while meeting the officials from the ministry of Energy and mineral Development led by the Acting permanent secretary Paul Mubiru noted that a oil reserve in jinja was handed over to Hared petroleum company yet its capacity is questionable.
Mps said if the company which was given Jinja oil reserve why up to now it has not refueled it.
Mps who include Joseph Sewungu , PauL Mwiru , Kasiano Wadri and Eddie Kwizera wandered how the government disposed off the government oil reserve to a private company and raised fear that under private company when fuel is in scarcity the price will double .
While responding to MPS concerns the Acting permanent secretary paul Mubiru told the mps that the reserve was given a private company because the government had no money to run it.
In March 2012 this reserve in Jinja was handed over to Hared Petroleum Company for refurbishing, refueling and managing it
The oil storage facility in Jinja has a capacity of 30 million liters and some reports say that Hared petroleum company has placed an initial order of 4 million liters for the reserve.
The reserve was established during the former president Idi Amin Dada’s regime.
Mps also ordered the ministry of Energy and mineral Development to avail the committee with a list of licensed mining companies to verify the companies which underdeclare the amount of funds payable to government.