The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | ISAAC KHISA | Uganda government plans to use the money it will get from the sale of a stake in the embattled telecom firm, UTL, to settle Libyan government and other debts.
The Libyan government through a private company, Libyan Post, Telecommunication and Information Technology Holding Company (LPTIC) via its subsidiary LAP GreenN was until March this year, a major shareholder in UTL with 69% and Uganda government holding the remaining 31%.
Otaremwa Otuhumurize, the firm’s current overseer representing the administrator, Uganda Registration Services Bureau, told The Independent in an interview on Dec 08 that foreign investors mainly from Europe, USA, South Africa and China have shown interest to buy stake in the telecom firm.
“So far we have 11 investors interested to invest in UTL…and whatever proceeds from the sale of the firm’s assets which we shall transfer to the new entity (investor) will be used to first pay the creditors before the Ugandan and Libyan governments can get anything as per their shareholding,” he said.
He, however, said it is unlikely that the two governments will get any proceeds from the sale given that the value of the current debts are higher than the value of the firm’s assets.
UTL owes debtors more than Shs533bn, with 30% and 39% of the debts owed to LIPTIC and government agencies including Uganda Revenue Authority and Uganda Communication Commission, respectively.
The new development, according to the receiver, is based on the company’s law that states that a minority shareholder has a right to go to court to seek for permission to run the company through an appointed administrator in the event that the majority shareholder pulls out of the business.
It is in this law that the administrator has powers to sell the existing entity to another entity, pay the creditors if any, and later share the proceeds based on their shareholdings.
UTL has in the past months shown signs of recovery since the government placed it under provisional administration last April.
