Government has put Uganda Telecoms (UTL) under receivership in a move state Minister for Investment says is the only chance to save the troubled telecom company.
Evelyn Anite has told a press conference at the Ministry of Finance Headquarters that placing the telco under administration will save it from collapse.
“Putting UTL under an administrator is the best news for subscribers,” Ms Anite said, “I can assure that if you are a UTL subscriber, it will be here tomorrow and the day after, in fact I want to encourage more Ugandans to have UTL as their first line.”
Government took over the full control of UTL on February 25 after the majority shareholder, Libya government-owned UCom unilaterally pulled out of the struggling company.
Ms Anite said that since taking control, government has evaluated and found that the telco’s liability far outweighed its assets but has resisted a push to wind it up.
The telco is believed to owe about Ush128 billion ($34.7million) in debts.