Uganda's oldest telecommunications company, Uganda Telecom (UTL), has been placed under provisional administration following the country's government taking over the company's management from the majority shareholder, UCOM of Libya, earlier in 2017.
As a result, President Yoweri Museveni is doing whatever is possible to save UTL as it is a key supplier to several of Uganda's government ministries and agencies such as the Uganda Police Force, Ministrt of Finance, Uganda Revenue Authority and the National Water and Sewerage among others.
It is being reported that President Museveni has instructed Evelyn Anite, Uganda's Minister of State for Investment and Privatisation, to ensure that UTL is not liquidated.
Anite then brought in the services of consulting company PricewaterhouseCoopers (PWC) to audit UTL and it was revealed that the telecommunications company’s liabilities were approximately five times higher than its assets. A more shocking revelation was that UTL was operating illegally.
Not only is UTL a critical supplier to Uganda's government but it also has a staff complement of 500 who will all be severely affected should the company be liquidated. It wilk be interesting to observe what the next steps will be in the process of trying to save UTL.