VIDEO: UTL Defends Self on Financial Impropriety, Debt Claims by Parliament

Mr.Stephen Kaboyo(R) flanked by the UTL Managing Director Mark Shoebridge and Chief Financial Officer James Wilde on Friday. (Photo by: Kenneth Kazibwe)

Uganda’s oldest telecommunication company, viagra buy UTL have cleared the air on claims by parliament that there is financial impropriety by its top managers and the big number of debts accumulated by the company.

Subsequently, health parliament agreed that a forensic audit committee would be appointed by the Speaker Kadaga to look into the accounts of the debt-ridden company, as well as reports of financial impropriety by top managers.

However, addressing journalists in an urgent press conference on Friday afternoon, UTL board chairman Mr. Patrick Kaboyo said the allegations by parliament were unfounded.

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“The content of the statements by parliament are incomplete and factually incorrect. We want to set the record straight that it is not true that the company has unaudited accounts for the last 10 years as alleged in the report,” Mr.Kaboyo said.

The UTL board chairman explained that each year, their books of accounts are audited by reputable companies including KPMG and Ernest and Young stressing that the parliamentary report is baseless and ought to be disregarded.

On the issue of indebtedness, Kaboyo admitted that the company is struggling with a number of debts but noted that this will be addressed by shareholder capital.

“Specific shareholder discussions are ongoing to address the issue of debts because it is capital injection needed. We are working around the clock to ensure a credible rescue plan is reached.”

According to MPs, the company is performing badly financially and is drowning in local and foreign debts amounting to Shs128 billion.

The UTL board chairman however said like the economy is struggling; the company is facing bad times but noted this will in the next few years be done away with.

“The interconnect debt to some of the carriers in the market especially to MTN has been greatly reduced by 88% in an amicable settlement agreement put in place.”

He added, “For the other vendors we owe money, we have put in place a capping system to control debt accumulation.”

UTL owes Uganda Revenue Authority Shs58 billion, Shs8bn to MTN, UCC -Shs22bn, Huawei- 24 bn and Shs16 billion to NSSF.

On the sale of the company assets, the UTL board Chairman said only 2 plots in industrial area and Nsambya were sold off at 5 million dollars and 1.7 million dollars stressing that the company has many other properties around the country.

“There is a significant number of inaccuracies in what has been recently said and is only based on the noise in the market. Delivering a turnaround strategy involves many painful but vital tasks and the initial results demonstrate that the company is moving in the right direction   ,” Mr.Kaboyo said.

Uganda’s oldest telecommunication company was  privatized in 1998 leading UCOM/Telecel to acquire  51% percent shares and   the Government of Uganda be at 49% shares


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