Seven months into administration, the debt riddled Uganda Telecom, has been dealing with a combined obligation of half a trillion UTL owed to the creditors as well pending dues from government agencies. The leadership of Uganda Telecom has revealed that it has a had a complex experience in the verification of the company’s debt.
UTL Administrator Bemanya Twebaze, says that a record 400 Billion claims have since been verified and confirmed as fictitious. “So having verified this, the next step is to get a strategic investor who government is going to partner with and we shall be able to clear the creditors or treat them appropriately based on how much money we shall fetch ” he added.
Initially, UTL’s debt portfolio still has a humongous UGX 940 billion owed mainly to suppliers and creditors a development that has undermined the business.
Evelyn Anite State Minister of Finance, Investment and Privatization revealed that “the genuine creditors is clearly UGX 533 billion, and of these UGX 236 billion is government owned to agencies like Uganda Revenue Authority, Uganda Communications Commission, NSSF, National Forest Authority, Posta Uganda all these are government owned and we have having a discussion around that”. She further revealed that the current debt is now about UGX 300 billion.
Phones to be made in Uganda
Government also singed a memorandum of understanding with Chinese technology company Xinlan Group to start manufacturing phones in Uganda with an initial investment of USD 10 million. Jack Wang a representative if the Xinlan groups said that “now we think its a good point to start with UTL because they believe for the next ten years should be the average market. So now we want to share our experience and technology with UTL.”
This comes after Pixan Corporation, a Ugandan based phone design company revealed two new phones that will soon hit the market. The Pixan M6 and M8 are designed in Uganda and manufactured in China, so having such an opportunity of having Chinese manufacturing firms setting up shop in Uganda may help boast Uganda’s mobile phone industry.