Uganda: Libyans Pull Out of UTL, Uganda Govt Takes Over
3 March 2017
Uganda Telecom Limited (UTL) that has been limping for years, will be rescued by government, that will take over its full management immediately.
Minister for Finance Matia Kasaija confirmed that Libyan company UCOM, a subsidiary of majority shareholders Libyan Post, Telecommunication and Information Technology Holding Company (LPTIC), would no longer be able to finance UTL.
UCOM, minister Kasaija confirmed, have also directed the resignation of five of its directors from the heavily indebted UTL.
"UTL's performance since 2007 has been characterized by heavy indebtedness, decline in market share and losses. This was due to inadequate investment, competitive pressure, a dilapidated network and governance challenges," Kasaija explained.
"From 2011, UCOM was unable to downstream capital to the company owing to the political turmoil in Libya and the UN/EU sanctions on Libya that affected the majority shareholder and froze its assets."
The minister said because UTL is provider of telecom services to government, employs over 500 Ugandans directly and paid over sh200 billion in taxes between 2006-2017, government decided to intervene to save it and will engage UCOM to ensure an orderly transition.
"UTL customers, stakeholders and the general public should be rest assured that the company will remain operational with the full support of of government" Kasaija said.