Libyan investors have blamed the government of Uganda for the collapse of Uganda Telecom Limited which was last week taken over by the same government.
The investors who had a stake in the telecom company argue that the governmnet takeover will not help the ailing company adding that the governmnet was in the first place not interested in the flourishing of the company.
The Libyan Post, Telecommunications, and Information Technology Company (LPTIC) who were the majority shareholders issued a statement on Sunday stating that the government was reluctant to adopt measures to turn around the fortunes of UTL.
This follows government’s announcement that the government had taken over operations and management of UTL.
This also came after LPTIC had notified government that it was no longer going to fund the operations of the telecom.
“Despite every effort by the Majority Shareholder to save UTL and in addition to its readiness to fund the implementation of a Transformation Business Plan, it was not possible to conclude negotiations with the Government of Uganda,” reads part of the statement seen by The Ugandan.
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It adds that “In straightforward terms, the process could not continue in the face of a protracted lack of substantive engagement with senior stakeholders within the Government of Uganda.”
The statement further states that: “Given the institutional unwillingness of the Government of Uganda to commit to a transformation plan for UTL in addition to its lack of contributions, the Majority Shareholder, as a responsible investor ultimately accountable to its Libyan Government stakeholders, had no choice but to cease further funding of UTL.”
This was the first time LPTIC was speaking out since the government takeover of the telecom company.
The statement which mainly pointed out that the government may not be able to rescue the telecom company concludes asking government to respect the position of LPTIC as the largest funder of UTL.
“Moving forward and notwithstanding the decision to discontinue funding UTL, the Majority Shareholder expects the Government of Uganda to fully comply with applicable laws and best practice concerning the protection of its investment interests in UTL, including with respect to its rights as UTL’s largest creditor. As a Majority Shareholder, the Libyan Post, Telecommunications & IT Holding Company will contest any plans or efforts to undermine its position.”
