Monitor lost Shs120m daily during closure

Kampala

On Monday May 20, the Daily Monitor newsroom was buzzing with scribes putting final touches to their stories meant to run in the Tuesday, May 21, edition.

Advertising space worth millions of shillings had also been booked. Radio journalists and presenters at the two sister stations; KFM and Dembe FM were in business. Commercials were airing as Djs made some mentions.

Then, unexpected visitors – clad in both civilian and police uniform came. Curious workers started asking each other what the matter was. Suddenly, the unexpected guests (police) shut down the newspaper’s printing press and sealed off the premises. They also switched off KFM and Dembe FM, declaring the premises a crime scene.

The siege
The siege lasted 10 days as police claimed they were searching for a letter authoured by Gen David Sejusa about the ‘Muhoozi project.’ The infamous search subsequently disorganised the company’s operations and caused uncertainty on the part of over 400 employees in addition to causing massive revenue losses.

The company has since lost copy sales and advertising revenue as it was unable to go to the market. According to the MPL general manager finance and operations, Mr George Rioba, the company has been losing about Shs120 million per day it has been closed in form of circulation revenue, radio and advertising.

Mr Godfrey Mulengi, the MPL general manager commercial, said the siege also paralysed advertising deals that were nearing conclusion (which actually constituted the biggest part of business according to Mr Mulengi) as advertisers contemplated the way forward. There was also supposed to be a high level policy dialogue on the budget hosted by KFM that was to be aired on Wednesday, May 22, but it could not happen due to the siege.

Newspaper agents and vendors also lost out on revenue of approximately Shs9 million per day, for the 10 days the company was closed.

MPL managing director Alex Asiimwe said although the company has suffered a heavy financial loss, the moment has redefined business, adding that despite brand interruptions; the company has returned to business strong and expects commercial success.

Mr Asiimwe said like has been the case, MPL’s reporting will continue to be guided by its Editorial Policy, which stands for quality and responsible journalism without compromising independence.

Mr Mulengi further explains that the siege presents a huge commercial opportunity due to the goodwill and solidarity expressed by advertisers and the public during the period the company was closed. “Business was disrupted yet the year 2013 had started on a good note. The period between January and April was the best MPL had ever had in the last five years in terms of sales growth and profitability. But we are confident that we will catch up because advertisers have shown us solidarity,” he notes. He, however, adds that the sales team will have to up efforts to sell print and radio advertising solutions to all clients.

According to Mr Rioba, the government also lost about Shs18 million in taxes daily in corporate tax revenue.

The business highlights while Monitor closed

1World Bank announces $1billion pledge to Great lakes region.
Following an historic joint United Nations/World Bank Group mission to the Great Lakes region, the World Bank Group announced $1 billion in proposed new funding to help countries in the region provide better health and education services, generate more cross-border trade, and fund hydroelectricity projects in support of the Great Lakes peace agreement that was signed by 11 countries in February.

2 Civil society cautions government trade agreements
A trade inclined civil society organisation has cautioned the government against signing multilateral (WTO) trade agreements, saying they (trade agreements) could be a tool the developed countries use to further their economic agenda at the expense of developing countries like Uganda.

3 Netherlands gov’t and Dfcu sign letter of intent for finance and agriculture
In a bid to stimulate growth in the sector dfcu Rabo Development and the Netherlands government signed a letter of intent that forms the basis for future cooperation in developing agro- and retail-financing at dfcu.

4 Sim Card registration deadline: Telecoms want more time
Telecom operators claim the 180-day extension period for sim registration was out inadequate, pushing them to demand for another grace period

5 URA registers revenue shortfall

With about two months left to close the financial year 2012/2013, the tax body has recorded a cumulative revenue shortfall of nearly Shs160billion, an indication that the institution could struggle to beat its Shs7trillion collection target.
Additional reporting by Ismail Musa Ladu

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