Ugandan MPs blame LAP GreenN for UTL troubles

26 May 2017

Mergers, Acquisitions and Financial Results

A group of Ugandan MPs has laid the blame for the collapse of national fixed line and mobile operator Uganda Telecom Ltd (UTL) firmly at the feet of former majority shareholder LAP Green Network (LAP GreenN) of Libya, with their report criticising the Libyan investor for ‘mismanaging the company’. The report states that ‘by the time the matter of UTL was brought to the attention of Parliament, the company was heavily indebted to the tune of UGX700 billion [USD191 million]’. It is thought that another UGX500 billion would be needed to recapitalise the struggling telco, which was placed in administration last month.

According to a report from The Monitor, of the seven MPs that formed a committee to investigate the troubles at UTL, five produced a majority decision blaming LAP GreenN, while one MP said the government should accept some of the responsibility and the other member abstained from voting.

Earlier this month the government reassured UTL customers that the telco would continue to offer services despite being placed under receivership. Uganda Registration Services Bureau registrar general Bemanya Twebaze, who is also acting as the government’s official receiver, said in a statement: ‘Customer retention is key and all efforts will be put in place for a seamless service … Uganda Telecom Limited pledges to continue providing reliable services to its customers.’

Source: Telegeography