UTL Debt Stands At Shs 700 Million – Report
A select committee instituted by Parliament to investigate the financial woes at Uganda Telecom Limited (UTL) has revealed that the company’s debt currently stands at Ugx 700 billion.
The committee chairperson, Phillip Okin Ojara, who is also Chua West MP, told journalists at a press conference at Parliament on February 7, 2017, that the investigations place the total indebtedness of UTL amounts to Ugx 700 billion.
Ojara said that the money was accrued from debts to local and foreign companies, which provided services to the company, while others included arrears from statutory deductions.
“When you look at the debt portfolio, including loans and liability of UTL, it goes up to the tune of Ugx 700 billion and this is enormous. This is serious because you really wonder how a company can get out of this situation,” Ojara revealed to the media.
Ojara outlined that UTL is choking on debts from Uganda Communications Commission (UCC), Uganda Revenue Authority (Ugx 58 billion), MTN Uganda and Airtel Uganda, among others.
“We are not very certain whether the capacity of the company will be revitalized so that they come out of this situation,” Ojara noted.
It should be noted that government owns 31% shares in UTL, with the majority shareholders; Libya African Portfolio (LAP) Green owns 69% shares.
The committee said that UTL may require recapitalization for it to be revamped and back on its feet. Ojara said this can be done if government and its majority shareholders inject more resources into the company.