The government of Uganda has taken back the ownership of Uganda Telecom with immediate effect and will soon appoint new managers to the troubled telecom firm.
Minister of Finance and Planning Matia Kasaijja announced the development at a hastily convened press conference at the ministry headquarters in Kampala.
The government action follows the withdrawal of Ucom, a Libyan government owned firm that held majority shares in UTL.
While announcing government takeover from the Libyan company Ucom, Kasaija said government has received notification that UCom will no longer avail funding to UTL and the company had directed the resignation of all the five representatives of UCom on the UTL board.
“In light of the above government has decided to take over the affairs and management of Utl with immediate effect, and will engage UCom to ensure an orderly transition,” said Kasaijja.
However, Mr Kasaijja assured UTL customers, stakeholders and the general public that the company would remain operational with full support from government.