The payment of Sh258 million by Tullow Oil Company to the Turkana County Government has turned into a bone of contention between a section of locals and the devolved unit.
County Finance Executive Michael Eregae confirmed that the devolved unit received Sh258 million in annual land lease fees from Tullow Oil on June 20.
“We included the money in the current financial year budget," he said. The county official added that the amount was payment for 20 acres of community land the firm had leased in Turkana East and Turkana South sub-counties.
But a meeting in Lokichar town to deliberate on the release of the funds and attended by Turkana South MP Ariko Namoit, Lokichar MCA Samwel Lomodo, county government officials, Tullow Oil representatives led by Mr Bethwel Sang, elders and religious leaders ended in disarray.
Mr Sang said that the money was not compensation for compulsory land acquisition but accrued levies, rates, and taxes chargeable under respective Turkana County Finance Acts since 2011 when the firm began exploration activities to date.
It was established that Tullow Oil was guided by the Turkana County Council laws enacted in 2004 and later Turkana County Finance Acts after devolution.
Dr Namoit demanded a report from Tullow Oil and the county government on revenue to clear doubts on “fishy payments”.
He criticised the practice of including payments for leased community land as part of county revenue.
"The Community Land Act of 2016 Section 6(1,2,3,4 &5) mandates the county government to collect money payable as land lease and transfer it to the community.”
“In a case where the community doesn’t have a bank account, it will deposit them in a special interest earning account and transfer the funds later upon registration of the account by the community," he said.
Governor Lomorukai sought to assure residents that any payment meant for the public including shares of oil revenue, will be protected.
He expressed optimism about the resumption of oil operations following talks with President William Ruto.
Turkana Extractives Consortium Chairman Thomas Ekai Eramram threatened to go to court to seek judicial interpretation of Community Land Act 2016 section 6 (1) in relation to money accruing from community land leases.
"From the Sh258 million, we need to know how much the community will get. The money should be reserved for the benefit of the local communities who live around the oil-rich region," Mr Eramram said.
