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– The HUAWEI claim was withdrawn from court in October 2016.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