UTL Debt Hits Sh700b, Wants Sh200b for Recapitalisation
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NATIONAL NEWS NEW VISION, Wednesday, February 8, 2017 7 UTL debt hits sh700b, wants Abiriga retains Arua MP seat sh200b for recapitalisation By Edward Anyoli, Andante Okanya and Denis Ojwee The Court of Appeal has confirmed NRM’s Ibrahim By Henry Sekanjako Abiriga as Arua Municipality MP, effectively dismissing an appeal lodged by his rival, FDC’s Bruce Musema. Uganda Telecom Limited (UTL) The court on Monday ruled that Musema went is facing a sh700b debt, which against the parliamentary election rules by filing the the company owes to different Paul Akamba memorandum of appeal out of time. companies both local and (left), a Musema has also been ordered to pay costs to Abiriga international, in interconnection member of arising from both the petitions filed in the High Court among other services. the select and Court of Appeal. In a statement to Parliament committee, The court upheld the decision of the High Court in last year, which culminated in speaks to Arua. In June last year, Musema petitioned the High a probe by Parliament, into the press as Court, seeking to invalidate Abiriga’s election, but the the mismanagement of UTL, the chairman High Court cleared him. Budadiri West MP Nathan of the The Court of Appeal’s decision in parliamentary Nandala Mafabi, told the committee, elections is final. This means Musema cannot lodge House that UTL, was bleeding Okin Ojara, another appeal in the Supreme Court. financially in local and foreign looks on at A panel of three justices Steven Kavuma, Cheborion debts, to the tune of sh128b. Parliament Barishaki and Alfonse Owiny-Dollo handled the However, briefing the media on yesterday. appeal. They said Musema did not file a memorandum the progress of the investigations, Photo by of appeal within the required Okin Ojara, the chairperson of Miriam seven days. Parliament select committee on Namutebi “We, therefore, hold that UTL, told journalists that the the respondent (Musema) committee had discovered that was not diligent as the law the company’s debt had reached which they struggled to pay, but Appearing before the requires of an intending sh700b. UTL, continued to accumulate “UTL has not been committee in December last year appellant in an election “When you look at the total the debt. Last year, Airtel sued as the first witness, MP Nandala appeal. We are unable to debt portfolio including loans, UTL in the commercial court for told the MPs that about two exercise our discretion let me say liabilities of UTL, it failure to pay off its debt. managed well. years ago, most of the company’s otherwise in view of the clear goes to the tune of sh700b. This assets such as buildings, land provisions of the law relating is enormous, because you really Poor management it makes losses and equipment, were being to time within which to file wonder how a company can get According to preliminary identified and prepared for sale the memorandum of appeal,” Ibrahim Abiriga out of that kind of indebtedness,” investigations, the committee with some having been already the justices ruled. Ojara said. cited the poor management to of sh500m on a sold off. When the case came up for hearing late last year, According to Okin, UTL has the collapse of the company. According to the committee, Abiriga through his lawyers Kiryowa Kiwanuka failed to pay local companies “UTL has not been managed daily basis.”Ojara UTL and Posta Uganda were and Usaama Sebuufu from Kiwanuka and Karugire such as Uganda Revenue well. It makes losses of sh500m also involved in a property Advocates, asked court to dismiss the appeal, saying Authority (URA), which in general operations, on a daily wrangle for land housing Posta it was late. demands UTL over sh50b in basis,” Ojara told journalists. Uganda on Kampala-Jinja road, The court noted that the notice of appeal was filed on tax, Uganda Communication The Libyan government is the UTL management recently, the with UTL claiming that it owns June 26, the same day the judgment was delivered, but Commissions (UCC), MTN majority shareholder in UTL, officials asked the government part of the land housing the the memorandum of appeal was filed on July 5, which Uganda and Airtel Uganda, holding 69% shares, with the to recapitalise the company Posta Uganda building. was past time. among other companies. Government of Uganda holding with at least $60m (sh214.4b), The committee, which has In a related development, the Court of Appeal sitting Last month, Airtel moved to only 31% shares. to enable the telecom company sought an extension of two in Kampala on the same day nullified the election of block calls between customers Despite the company’s stabilise. months period to expand its Lucy Aciro Otim as Aruu North MP and ordered fresh of Airtel and Uganda Telecom, indebtedness, the committee investigations has interacted elections, citing irregularities, rigging and destroying after the two companies discovered that top bosses at Property sold off with officials from UTL, UCC, of voting materials from the Electoral Commission cancelled their interconnection UTL were getting hefty salaries, The three-week investigations by among other stakeholders. during elections last year. agreement over debts. which are paid in US dollars. the committee also discovered The committee is in the field, The appeal was filed by James Nock Kidega who was that most of UTL’s property and carrying out an audit of UTL Aciro’s closest challenger, who polled 8, 597 votes; two Interconnection services Sh214b for recapitalisation assets had been sold off by the property such as masts, land votes less than Aciro who polled 8, 599 votes. In 2011, UTL owed Airtel sh10b During their interaction with management. and buildings countrywide. Civil society faults Parliament for ignoring public’s views in legislation By Moses Mulondo have been anchored on the interests they presented us with a very big Bill of the Executive other than those of BETWEEN THE LINES: yet they only cover us from 2:00pm to Civil society activists yesterday Ugandans. 4:00pm,” the Oulanyah explained. challenged Parliament over what they Citing various scenarios such as Faridah Lule said Parliament Dr Gerald Karyeija from Uganda termed as failure to tailor its legislations the recent firm stand Parliament took has been anchored on the Management Institute (UMI) to the interests of the citizens. on the sh6b presidential handshake, interests of the Executive other stated various factors why most The views were echoed yesterday Oulanyah had just explained that than those of Ugandans. parliaments in Africa are weak, during a discourse the Speaker, Uganda Parliament is strong and which included marginalisation by Rebecca Kadaga, and her deputy, independent in executing its duties. including members of the public. the Executive, having limited powers Jacob Oulanyah, had with the civil He had also told the congregation Kadaga informed the congregation in the constitution, lack of courage to society and members of the public that in handling the various Bills, they that Parliament is in advanced stages challenge the Executive, and legislators on what needs to be done to build a try as much as possible to have the of starting its own radio and television failing to follow the interests of their people-centred Parliament. It was part input of various stakeholders. stations to accord wide coverage to the constituencies. of the activities to mark the ongoing “In 2004/2005 when you were the proceedings of Parliament. The Uganda Law Society president, Parliament Week. chairperson of the legal committee, Speaker Rebecca Kadaga She outlined various interventions Francis Gimara, argued that the Prominent lawyer and former I and many other groups including through which Parliament has allegiance of NRM party legislators legislator Wandera Ogalo argued that one that was led by Prof. Ssempebwa amendments, we never left out any recovered billions of taxpayers’ money to the party positions other than the many times the civil society and many brought views on constitutional and views we received from the public. We and that the House is probing the interests of Ugandans is one of the other stakeholders have presented electoral reforms, but your committee gave reasons why we rejected some of inflated costs of infrastructure projects. challenges Parliament faces in walking views on various Bills, but Parliament ignored all of them. It was an insult the views,” he explained. Denis Katungi from Uganda Media the journey of a people-centred ignores them. to us and it is such incidents that Oulanyah chaired the legal Centre challenged the logic behind the parliament. The debate kicked off after Oulanyah discourage many of us to come back committee which recommended the Parliament radio and TV, yet the House “Because of that narrow asked anyone in the congregation to to present our views,” Ogalo told removal of presidential term limits can use the available state-owned imprisonment by the NRM party’s stand and give reasons why they think Oulanyah. from the Constitution in 2005. media houses and save the resources. interests, Parliament is captive to the Parliament is weak. Defending himself, Oulanyah argued Ogalo proposed that Uganda Oulanyah explained that the radio Executive in making laws. The current Faridah Lule from Foundation for that usually there are many vested emulates Kenya by passing an and TV projects have been fully funded Land Act is incapable of resolving land Human Rights Initiative told the interests. amendment, which will require by UNDP and, therefore, they would conflicts because it was rushed and Deputy Speaker that most of the laws “In 2004/2005, when I was chairing Parliament not to pass any law before not have to use taxpayers’ money. the views of the stakeholders were and decisions made by Parliament the legal committee on constitutional consulting all the key stakeholders “Forget about UBC.