The Independent Uganda: You get the Truth we Pay the Price
Do you still have interest in UTL?
We believe that UTL can be turned around and made profitable again. We have a plan and agreement with the GoU for the basis of this turnaround. Unfortunately, the GoU is unable or unwilling to finalise certain matters that underpin the plan and is not moving fast enough to conclude these issues. We are ready to invest but the GoU is not willing to commit. Without agreement very soon UTL will be seriously at risk of liquidation.
You mention GoU’s lack of commitment. What was the government of Uganda supposed to fulfill so that you inject in more capital in UTL?
An Agreement was finalized with the Ugandan government whereby the government would support the business plan, alongside LPTIC, in two ways. First, it would convert its debt to UTL to equity alongside LPTIC, restructuring the balance sheet of UTL. Second, it would accept liability for the actuarial amounts of pensions which exceeded the statutory contributory pension of 10%, 5% of UTL. These additional liabilities were never for UTL and were the Governments under the Privatisation law.
How much cash injection does UTL need to return it to profitability?
The funding needed to turnaround UTL is US$48million, which was to be financed from the sale of towers and funding from LPTIC.
The general perception in the public is that UTL is a company that is beyond redemption. Is this an opinion you share?
No, we see a real opportunity to turn the company around, but are being held back by a failure of the government of Uganda to act and conclude important shareholder matters that have been on the table for the last 9 months.
Which other investments has LPTIC invested in the East African region?
LPTIC has no investments in East Africa other than West Indian Ocean Cable Company (WIOCC), which LPTIC has a share of 9.6%.
Where do you see UTL in the next five years?
If the Ugandan government can conclude the Shareholder matters we see a bright future for UTL. After the changes in the turnaround plan, which will take about 9 months, we see UTL as profitable and providing new and exciting services in the Ugandan market.
****
editor@independent.co.ug
