LPTIC Boss meets Museveni
December 8, 2016
Interconnectivity
January 30, 2017

In response to recent stories in the media referring to a report on Uganda Telecom, we would like to address these comments.

For the past 8 years UTL has faced numerous challenges and during this time the shareholders and Board of Directors have worked hard to sustain the business. Today, we have in place a new management team that has been tasked to turn the business around.

As part of any turnaround plan, all aspects of the company and its’ cost structure in fine detail are being analysed. As one would expect, this is never a popular task as it requires reducing non-essential operational costs. We are pleased to report that these efforts have already shown significant results, with our revenues having increased by 13%, our operational expenses have reduced by 8%, and our operational deficit has decreased by 23%; a position and overall trend the company has not seen for many years.

We refute the contents of the published statements for being incomplete or factually incorrect.

A number of allegations were raised in the statement and we would like to respond to them as follows:

Audits

  • Uganda Telecom as a private company has been audited each year by reputable firms such as KPMG and Ernst & Young. The last audit for 2015 is being undertaken by Ernst and Young.

Indebtedness

  • The company does have significant levels of debt that will be addressed by shareholder capital. This includes statutory and trade creditors, including NSSF, URA, UCC, amongst others. Specific shareholder discussions have been held and are still ongoing.

– Eligible NSSF remittances have been resumed since February 2016.

– The HUAWEI claim was withdrawn from court in October 2016.

– Interconnect Debts to MTN have already reduced by 88% and an amicable settlement agreement is in place for the balance.

Sale of Non-Core Assets

  • There has been no asset stripping. Only two properties have been disposed of through proper governance and approvals from the Board of Directors and Shareholders.

In summary, there are a significant number of inaccuracies in what has been recently published. The Board of Directors and Shareholders understand that delivering a turnaround involves many painful but vital tasks. Initial positive results seen so far reaffirm efforts and demonstrate that the company is pointing in the right direction. The Board of Directors Management Team is fully committed to cooperating with the parliament select committee in a transparent and unreserved manner.

The Board of Directors and the Management Team would like to reassure its customers and partners that we are committed to delivering results and to restoring UTL to its full potential.

It’s all about U.

 

Mr. Stephen Kaboyo
Chairman of the Board
Uganda Telecom Limited

 

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