Uganda Telecom and the First Family's role in the company

Uganda Telecom Limited (UTL) was formed in 1998 to take over the telecommunication operations of Uganda Posts and Telecommunications Corporation Ltd (UP&TC), the state owned corporation.

It underwent a comprehensive financial restructuring program, which included Government assumption of long term debt and other liabilities, waiver of past corporation tax liabilities, revaluation of fixed assets, write-off of uncollectible receivables.

In June 2000, Uganda Telecom was given to a consortium code named UCOM which comprised of companies namely Detecon of Germany, Telcel and Orascom of Egypt at U.S.$ 33.5 million whereby they were supposed to own 51 percent of the shares and the 49 percent was supposed to be floated on the Uganda Stock Exchange.

According to the agreement, Detecon was supposed to provide management.

The working relationship between Mr. Mpore the current Managing Director and the German Managing Directors got so difficult that it went beyond repair. He was eventually appointed MD of the company, and right away started hiring some people in total disregard of the recruitment procedure. Some of the new staff were related to or recommended by State House.

People hired included, Donald Nyakairu as Company Secretary, Geoffrey Kamuntu, who is now married to Diana Museveni, and Istha Asiimwe, daughter to the Foreign Minister Sam Kuteesa, among others.

Because of the irregular recruitments some of the new dubious managers took advantage of the confusion and mismanagement and started victimizing other staff.

Some former staff members complain that they were kicked out only because they were perceived as a threat to the current Marketing Manager Hans Paulsen (real names: Hans Paul Ssentongo) who they say was particularly intolerant and vindictive towards them.

Before it was sold off, UP&TC Makerere exchange call data under the leadership of senior staff like a Miriam Kawuma lost the company colossal sums of money under circumstances that were unclear. Some staff lost their jobs as a result.

Susan Muheirwe Kitariko was appointed a Customer Care Manager. Some staff who think they dont get along with her or are in some way a challenge to her have reported that they have had to be particularly careful lest they leave the company under duress.

Recently, MD Mpore successfully wooed the board of directors and got an approval without question on the issue of a corporate change, making UTL and Mango one entity, something that was supposed to have been done at the time of privatization. The Board went ahead and approved this expenditure where colossal sums of tax payers money has been lost.

Everyday, there is retrenchment in Uganda Telecom. Staff in UTL stopped working and instead wait for either the salary pay slip or the retrenchment letter. The Government has not bothered to find out why the current management is carrying out a retrenchment exercise which is endless.

The fact that the extended First Family is deeply and personally involved in Uganda Telecom contrary to due process could be one of the sources of all this mismanagement. Reliable sources tell Radio Katwe that Major Muhoozi Kainerugaba, Museveni's son is in charge of the First Family's interest in Uganda Telecom.