New Administrator to oversee resurrection of cash strapped Uganda Telecom

Uganda’s oldest telco has been in receivership since April 2017, as it fell victim to alleged corruption and embezzlement
Africa, Uganda Telecom, Finance, Telecoms

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Former Uganda Law Society boss, Ruth Sebatindira, has been appointed as the new Administrator of Uganda Telecom.

The cash strapped telco was originally placed in receivership in April 2017, following a dispute between the company and the country’s Ministry of Finance over unpaid dues, as its debts rapidly out stripped its asset base.

A report in the Daily Monitor suggests that at the point it was placed into receivership, Uganda Telecom had debts and liabilities of around $245 million (900 billion Schillings), whilst its asset base was valued at only $40 million (148 billion Schillings).

Uganda’s President has previously stated that the former government owned telco was a victim of corrupt officials who sort to strip the company’s assets and pay themselves exorbitant salaries.  

In November 2016 the Ugandan government opened a public committee to investigate corruption at the telco and to ascertain whether up to $1.5 billion had been embezzled from the company by its staff.

In May 2017, Bermanya Twezabe was appointed as the Administrator of Uganda Telecom and was tasked with returning the company to a financially viable position. However, in December 2019 irate creditors from Uganda’s Contributory Pension Scheme wrote to the High Court requesting that Mr Twezabe be replaced as Administrator.  

Last week, High Court Judge, Lydia Mugabe, appointed Ruth Sebatindira as the company’s new Administrator. Sebatindira will commence her duties with immediate effect.

Uganda Telecom was Uganda’s first telco and provides 3G mobile network services to millions of subscribers across the country.

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