The management of Uganda Telecom Limited (UTL) has officially handed over the administration to Uganda Telecommunications Corporation Limited (UTCL) after fulfillment of the terms agreed upon in the Asset Sale and Procurement Agreement (APA). The new management is liable for all of UTL’s earlier liabilities totaling UGX165 billion.
The Minister of State for Investment and Privatization, Ms. Evelyn Anite, said on Friday last week at the handover ceremony that the Libyans who were the majority shareholders in UTL resigned and made it difficult for the telco to operate. “The President gave me instructions to save UTL which I have successfully done.” “The shift from UTL to UTCL is a great milestone in the country’s development given that the government is going to be in full control of the company without involving investors.”
UTCL is 60 percent owned by the Ministry of Finance while the Ministry of Information Communication and Technology and National Guidance owns 40 percent of the company.
The Board Chairman of UTCL, Dr. Grace Ssekakubo says the new administration is focusing on investing in the latest technologies such as the 5G+ network, upskilling the internal staff, and implementing a digital ecosystem to ensure that customers get value for their money.
“The board knows what Ugandans need, so we are ready to provide affordable and reliable telecom services across the country. This will enable our customers to have value for money,” he said.
“We are inheriting the company with all its old staff on a contract of six months, they are therefore required to prove their worthiness within this period so that they are considered for long-term contracts,” Dr. Ssekakubo added.
The administrator for Uganda Telecom, Ms. Ruth Sebatindira said the payments under the Asset Sale and Procurement Agreement (APA) are payable until June 2023, and UTL administration will cease upon completion of the payments and settling of residual matters.
PC Tech learned that UCTL took over UTL after agreeing to pay UGX356.8 billion which will be applied towards some of the liabilities such as Trade bank Loans, WIOCC investment, and administration debts. The new management will soon do the rebranding of the company.
In 2015, a report by Uganda Telecommunications Commission (UTC) showed that UTL’s liability stood at UGX220 billion. Following the report, the Uganda Communications Commission (UCC) issued a notice threatening to revoke the company’s operational license.
At the time of rebranding from UTL to UTCL, the company’s estimated debt stood at UGX1 trillion with its assets valued at UGX250 billion, employing over 200 people.
The board chairman said soon UTCL will be launching its Mobile money platform known as Ug-Sente.
