Government may be forced to liquidate its assets in Uganda Telecom if it does not pick up within one year. This is because the company is on financial “oxygen” but not yet dead. Hon. Bahati revealed while appearing before the select committee instituted by Speaker Rebecca Kadaga to look into the gross mismanagement of funds within the telecom company.
Hon. Bahati says that the Libyan investment authority which was linked to the majority shareholder was held back because of this sanctions.
“There were sanctions by the UN barring financial transactions from Libya and this affected the transfer of money into UTL.
While interacting with members of the committee, Bahati also noted that whereas government has been forced to consider this option, it will in the meantime institute a number of measures to ensure that the company is revived.
“Gov’t is doing whatever it takes to revive UTL ; the majority share holders will be here at the end of this month to dicuss the obligations given to them such as paying creditors, improving &investing in technology and providing a business plan” Hon. Bahati said.
These among others include investing in more technology for the company, overhauling its current management in addition to looking for better investors for the company.
“For strategic reasons, it is important that we own shareholding in a telecom company” Bahati said.
“We think that we can give Uganda Telecom another chance and see how the whole of this year moves and if it doesn’t work, we know that as we are very calculative to make sure that we minimise on the loses that we are making right now” he added.
However the legislators led by the committee chair, Chwa West County MP Okin Ojara, questioned Bahati on how the government will monitor the company’s revival in addition to ensuring that the issues of mismanagement are addressed.