Uganda Halts New Oil Deals Following Accusations of Bribery

Posted October 12th, 2011 at 6:25 am (UTC-5)
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Lawmakers in Uganda have temporarily suspended the signing of all new oil deals until new regulatory laws are passed.

Uganda's parliament made the move Tuesday following allegations that bribes were given to several top Ugandan politicians in order to secure the purchase of some of the country's oil assets.

In particular, lawmakers withheld approval of the sale of U.K.-based Tullow Oil's assets in Uganda to China's Cnooc Ltd. and France's Total SA.

The move was prompted by a Ugandan politician who presented a number of documents accusing Tullow of wiring millions of dollars to several government ministers ahead of the purchase, which was originally scheduled to take place in September.

Both Tullow and the ministers accused of receiving the bribes deny any wrongdoing.