UCTL inherits UTL with liabilities worth Shs165 billion

A man pictured walking past UTL offices in Kampala. FILE PHOTO

What you need to know:

  • According to the Minister of State for Investment and Privatization, Ms Evelyn Anite, the shift from UTL to UTCL is a great milestone in the development of the country because the government is going to be in full control of the company.

The Management of Uganda Telecom Limited (UTL) officially handed over the administration to the Uganda Telecommunications Corporation Limited (UTCL) after fulfilment of the terms agreed upon in the Asset Sale and Procurement Agreement (APA).  The new management is liable for all UTL’s earlier liabilities totalling Shs165 Billion.

According to the Minister of State for Investment and Privatization, Ms Evelyn Anite, the shift from UTL to UTCL is a great milestone in the development of the country because the government is going to be in full control of the company.

“Now we are having a company (UTCL) that is 100 per cent Ugandan and the President has ordered that it should be run as a national company without involving investors,” Ms Anite said on Friday at the handover ceremony.

She added: “We all know that our majority shareholders in UTL [Libyans] resigned and it was very difficult for us. The president gave me instructions to save UTL which I have successfully done.”

In 2015, a report by Uganda Telecommunications Commission (UTC) showed that UTL’s liability stood at Shs220 Billion. Following the report, 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 Shs1 trillion with its assets valued at Shs250 billion, employing over 200 people.

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 of 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,” he added.

UTCL is 60 per cent owned by the Ministry of Finance while the Ministry of Information Communication and Technology (ICT) while National Guidance owns 40 per cent of the company.

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.

This publication learnt that UCTL took over UTL after agreeing to pay Shs356.8b which will be applied towards some of the liabilities such as Trade bank Loan, WIOCC investment and administration debts. The new management will soon do the rebranding of the company.

The board chairman said soon UTCL will be launching its Mobile money platform known as Ug-Sente.