UTL Owners To Capitalise Company By End of 2017
The majority owners of Uganda Telecom Limited (UTL) have said plans are underway to capitalise the company by the end of 2017.
Dr. Faisel Gergab, the chairman of Libyan Post, Telecommunication and Information Technology Holding, owners of UTL, has said the company’s current financial woes will be sorted out. Dr. Gergab met members of the select committee currently investigating UTL in Dubai on February 20, 2017, at the Dubai International Financial Centre (DIFC).
The committee traveled to Dubai to meet the board members of the company, in regard to their probe on the financial status of UTL.
This is after Budadiri West MP, Nandala Mafabi tabled a report in Parliament last year, revealing gross mismanagement of funds in the company, coupled with allegations that top company executives had sold off prime land and assets belonging to the company.
According to the committee, UTL is currently in a Shs 700 billion debt owed to local entities and companies, including Airtel Uganda, Uganda Communications Commission (UCC) and Uganda Revenue Authority (URA).
Dr. Gergab reassured the committee that the company is coming up with a transformational plan that is going to significantly boost the company’s existing services.
“I am confident that UTL still has significant potential and a great opportunity within the world to provide high quality services,” Dr. Gergab said.
The chairperson of the committee, Okin Ojara tasked the company, which owns 69% shares in UTL, to explain why it has failed to capitalise the company for years, despite its dwindling fortunes.
However, Stephen Kaboyo, the board chairman of UTL blamed the company’s woes on bureaucracy in government in making financial decisions for the company.
Kaboyo also stated that the company is grappling with finances due to failure by several government agencies’ failure to clear a Shs 16 billion debt.
“UTL demands lot of money in terms of services offered to government entities. We are now working with the Secretary to Treasury to start deducting this money at source and we shall also disconnect those who haven’t paid just like we have done to Uganda Police,” Kaboyo said.