Deportations at MTN

Troubles far from over

All this happens at a time MTN is pushing to have its licence renewed.

Pressure is also mounting on MTN from local contractors who accuse it of fraud and anti-competition behaviour. Insiders also say President Museveni had been given a report showing that MTN was under-declaring revenues, repatriating mega profits, and evading taxes.

As early as 2016, Museveni was claiming that telecom companies were under declaring revenue and costing the country an estimated $400 million per year in unpaid taxes. Last year, Museveni warned against the “hiding of money coming in and out of the country, the coming in and hiding of telephone calls, the misuse of social media for subversion and malice”.

The president made these statements the same month ISO operatives invaded the MTN data centre and forcefully carried away some servers.

While telecom sector regulator; the Uganda Communications Commission (UCC) had earlier noted in a review that MTN failed to meet some legal and technical requirements for the licence, it gave a green light for renewal. Cabinet also gave a green light but on condition that MTN floats shares in order for locals to own part of the company.

On top of this, government had slapped a US$ 100 million licence fee on MTN and when UCC whittled it down to about US$58 million, President Museveni disagreed publicly.

“You ought to be aware that over the 20 years span during which MTN has been operating in Uganda, it has reaped vast profits most of which have obviously been repatriated. This is common knowledge derived from the company’s own declarations and from our own sources,” President Museveni wrote to UCC and ministry of ICT on October 28, 2018. “Accordingly, the company’s obligation to sow where it intends to reap for the next 10 years, as well as its ability to do so, is, and cannot be in doubt.”

“I am hereby directing both of you to protect the interest of both the country and investor by ensuring that you scrutinise the process and involve Finance and the tax matters. I expect a quick resolution and an update in 14 days,” Museveni added.

A Jan.23 meeting between President Museveni and the MTN Group CEO Rob Shuter in Davos, Switzerland on the side lines of the World Economic Forum had been seen as a major step forward for the company; especially given that it happened after the initial deportations. Wim’s deportation, however, has showed that MTN’s troubles are far from over.

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