UTL under provisional administration
Uganda Telecom Limited (UTL) has gone into provisional administration following the appointment of the official Receiver as the provisional administrator. The company is heavily indebted.
UTL said the provisional administrator’s number one priority would be to protect the company and ensure that it trades as a going concern. While the Uganda Registration Services Bureau (URSB) gave the assurance that it would seek to return UTL to profitability in the long term, reports this week suggested that hundreds of jobs were on the line.
In March this year, the Honourable Minister of Finance Matia Kasaija announced the decision of the Government of Uganda to take over the operations of UTL with immediate effect following notification received from the majority shareholder UCOM stating that they would no longer avail funding to the company.
For over a year, the two shareholders UCOM and The Government of Uganda had been in discussions to agree on turnaround plan for Uganda Telecom. These discussions were at a very advanced stage and a draft shareholder agreement providing for a turnaround strategy was pending approval by Government.