Fighting over UTL administration

Repeated fights

The fights at UTL have been on and off for some time with the Minister for Privatization, Evelyne Anite, and Finance Minister, Matia Kasaija, calling for the removal of Bemanya as provisional administrator.

Bemanya was accused of blocking the Ministry of Finance officials (especially Anite and Kasaija) from accessing the company’s financial records for most of the part he (Bemanya) has been in charge. Bemanya had also blocked Anite’s side from conducting an audit into the company’s affairs.

Similarly, Otafiire, the Attorney General, William Byaruhanga and his deputy, Mwesigwa Rukutana and a few other technical officials at the ministry of finance were siding with Bemanya arguing that there cannot be an audit when provisional administration was still ongoing.

They argued that the ministry of finance has no control over the company in its current status. They cited section 174 (1) of the insolvency act, which provides that only listed creditors can apply to court to remove the administrator from office.

But Anite’s side argued that UTL is a government entity and that government has all the possible means and power to remove Bemanya.

Museveni was in the know about these fights. He had ‘tactically failed’ to bring his juniors to order until November 9, 2019 when he said in a letter that Bemanya be replaced with another administrator for the sake of ensuring there is harmony in the operations of UTL.

“I have received your letter of 6th November, 2019, about the Administrator of Uganda telecom (UTL) whose contract is expiring but you want to renew his contract. Bemanya is always in conflict with Minister Anite. Hon. Anite is one of our most active Baijukuru,” Museveni’s letter reads in part.

It adds: “In the interest of cohesion get another Administrator. It is easier that way. Going on with endless tension is not good management,” he added.

By press time, on Nov.25, Kasaija told The Independent in a telephone interview that the process to appoint the new administrator had started.

“We are processing…don’t worry; when time comes we will let you know,” he said before ending the call.

UTL troubles

UTL’s troubles started in 2007 with big debts and decline in its market share. It started making losses emanating from inadequate investment, competition, dilapidated network and governance challenges.

The situation worsened when the UN imposed sanctions on the Libyan assets at the height of political turmoil in Libya in 2011 affecting capital inflow to the company.

In 2017, the Libyan government through a private company called Ucom controlled management as the major shareholder with 69% shares.

Ucom was in turn owned by the Libyan Post, Telecommunication and Information Technology Holding Company (LPTIC) via its subsidiary LAP Green. The government of Uganda owned 31% shares.

Though Ucom resumed control of the company two years later following lifting of international sanctions against Libya, LPTIC was not able to inject more capital into the company citing disagreement with the Ugandan government.

This triggered the Libyan authorities to bow out of the UTL business. The company was then placed under provisional administration in May 2017. It remains unclear when this provisional administration will end.

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