The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The Uganda Telecom administrator, Bemanya Twebaze says that the company is still accessible for investment following the exit of a Nigerian firm, Teleology Holdings Limited.
The Nigerian firm which had been identified to revamp UTL following a cabinet directive failed to meet its contractual obligations of investing 268 billion shillings in the company as agreed.
With government having 31 percent shares in UTL, Taleology Holdings had been recognized as a replacement to Ucom Limited, a Libya based company that owned 69 percent shares but pulled out in February 2017 after mismanagement of the Telecom.
It was at this point government entered an Administration deed and appointed Bemanya Twebaze, the Registrar General of Uganda Registration Services Bureau (URSB) as the Administrator of UTL.
Amid an accountability standoff with government on the operations of UTL and a vacuum for an investor, Bemanya on Friday addressed Journalists saying that the company is still sourcing for an investor to boost operations of UTL.
He said that they so far received over 20 expressions of interest and held discussions with the investors whom he said they are yet to be successful with any but that they will continue with the search and engagements to avoid liquidating the company.
Twebaze refuted statements that Taleology Holdings had been handed over UTL saying that this falls short of the facts since the Nigerian firm never accessed UTL for failure to meet the set targets.
According to State Minister for Investment and Privatization, Evelyn Anite, Taleology had been identified over the State-founded Mauritius Telecom which had financial capability and muscle to run the company. However, Taleology’s identification had been based on its higher proposal to invest Shillings 268 billion (US Dollars 71m) in the company against Mauritius Telecom’s Shillings 167 billion (US Dollars 45m).
According to Twebaze, UTL currently has a verified figure of indebtedness of 530 billion shillings and that the company’s asset value that was initially under declared at US Dollars 40 million is now at US Dollars 84 million composed of investment in a submarine cable company, West Indian Ocean Cable Company (WIOCC), land and building, machinery equipment, goodwill and spectrum.
UTL currently supplies 350 government Ministries, Departments and Agencies with internet and telephone services from 118 before being placed under administration. Twebaze also said that several corporate entities, international agencies, embassies and others continue to use the company’s internet and telephone services. UTL’s monthly revenue is at an average of 4.2 billion Shillings.
Since its placement under administration in April 2017, Uganda Telecom is reported to have reduced its monthly operational expenditure by 16% from Shillings 5.7 billion in April 2017 to Shillings 1 billion in May 2019.
“Site security costs have reduced from 235 million to 207 million. The fuel costs have increased by 20% and 8% respectively due to increase in unit rates from suppliers. Site maintenance costs have increased by 127% from 230 million to 523 million mainly due to daily breakdown of very old equipment,” Twebaze explained the company’s operational expenditure.
He said that 100 generators have been overhauled, battery banks overhauled, grid extended to sites and that several sites that were switched off by their predecessors switched on.
Speaker of Parliament Rebecca Kadaga on Thursday noted that she would to give her ruling on Uganda Telecom operations on Tuesday after studying documents presented before parliament.
*****
URN
