MPs block UBC Shs80 billion bailout

Legislators on the Parliamentary Committee on Budget on Wednesday blocked the government’s Shs87 billion request purposed to bail out the Uganda Broadcasting Corporation (UBC) from the glaring arrears the national broadcaster is currently grappling with.

The request that was thrown out is part of the Shs176.761 billion proposed budget for the Ministry of Information Communication and Technology (ICT) that was presented yesterday by the vice chairperson of the parliamentary Committee on ICT, Mr Nathan Nabeta [Jinja East].

As he presented the Ministry’s 2023/2024 Budget Framework Paper (BFP), Mr Nabeta reasoned that once availed with the said funds, UBC would completely wipe out the outstanding arrears that it is currently choking on.

Mr Nabeta further reasoned that lawmakers need to consider the budget request since it is state information conduit.

“It is the mouth piece for government. So we need to look at that,” Mr Nabeta told his counterparts on the budget committee.

Mr Nabeta’s request hit a brick wall after lawmakers declined, with majority reasoning that the previous bailouts made by government had not materialised, which does not therefore guarantee that Shs87 billion request will serve the purpose.

Suggestions for closure and or transfer were fronted by the Kira Municipality MP Ssemujjju Nganda, Shadow minister of Finance Muwanga Kivumbi, the Buyaga West MP, Mr Barnabas Tinkansimire, and the Sheema South MP, Mr Dicken Mushemeza.

Even when the ICT committee put up a spirited attempt to persuade the Budget committee to clear the Shs87 billion request, Mr Ssemujju insisted that no money would be allocated to UBC on grounds its impact is hardly felt across the country.

“My proposal then is that I want to persuade you to transfer this UBC since we are now rationalising, just carry this UBC and take it to New Vision. Yes! Because we own New Vision by more than 50 per cent,” Mr Ssemujjju said before adding: “We can use that shareholding to achieve what we want to achieve with UBC.”

In an alternative suggestion, Mr Nganda said: “So just transfer UBC to New Vision all the problems will go away. Otherwise they have emasculated that entity. They have taken away land, taken away masts.”

Other legislators including Mr Kivumbi (Butambala County) out reasoned Mr Nabeta on grounds that whereas the state-broadcaster is expected to air state related information, most of the times private media outlets relay live state proceedings.

He cited the example of the national addresses made by President Museveni and in the aftermath of the Covid-induced lockdown.

In support of the above the Sheema South MP Mr Mushemeza said: “I want to agree that if UBC cannot deliver from the amount of money we have given to it [UBC], we either transfer it to another entity or wind it up. I completely agree.”

Spirited fight

Speaking in defence of the request,  Mr Nabeta reasoned that the broadcaster is still struggling to fully deliver on its expectations because majority of the challenges have been recurring since it was made a corporation.

Mr Nabeta revealed that challenges at UBC have since forced it into collecting adverts so that it can meet some of the operational costs pressing down the administration.

The documents tabled before legislators on Budget committee showed that UBC needs Shs46 billion to clear National Social Security Fund (NSSF) remittance arrears for its staff, Shs15 billion for Uganda Revenue Authority and Shs192 billion for the Kampala Capital City Authority . 

The state broadcaster has also not cleared Shs315 million bill to the National Water and Sewerage Corporation and another Shs77 billion to the National Information Technology Authority .

UBC response

In a telephone interview, the managing director of UBC, Mr Winston Agaba, decried the legislators’ refusal to clear the Shs87 billion request.

He reasoned that like policy is world over, a state broadcaster is run on budget financed by government.

“We are a national broadcaster that inherited debts from the UTV [Uganda Television Network],” Mr Agaba said before adding: “I believe that most people have not understood how broadcasting is done. National broadcasting comes with enormous expenses.”

As a way of not backing down in the push for the funds, Mr Agaba said: “We shall engage Parliament via different avenues.”