• EDITORIAL POLICY
  • ABOUT US
PML Daily
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines
No Result
View All Result
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines
No Result
View All Result
PML Daily
No Result
View All Result
suubula suubula suubula
Home BUSINESS

How MTN Uganda ended three-year license tussle with government

JAVIRA SSEBWAMI | PML Daily Staff Writer by JAVIRA SSEBWAMI | PML Daily Staff Writer
March 17, 2020
in BUSINESS
0 0
6
SHARES
364
VIEWS
FacebookWhatsAppTwitter
MTN Group CEO Rob Shuter with the Ugandan President Yoweri Kaguta Museveni in Davos, Switzerland. (PPU PHOTO)

KAMPALA — Telecommunications giant MTN has confirmed that it will list 20 percent of its shares on the Uganda Securities Exchange, and pay $100 million in blanket taxes as part of the conditions for it to be issued with a long-term license by government.

This comes after a three-year-long tussle between Africa’s biggest network operator and the Ugandan government.

This website understands that the tax fee will be paid in two instalments of $50 million each to the Uganda Revenue Authority.

The first payment was expected to come on Monday March 1, 2020. We couldn’t independently verify whether MTN Ugandan actually paid the money to URA as greed between them and government but we understand the next will be received in April or before the end of the financial year.

State Minister for ICT Peter Ogwang confirmed the reports on Friday while providing the basis for the issuance of an unusually long-term license.

“It is true that MTN agreed to pay the $100 million in return for a license for 14 years. As a government, we had wanted to give them 10 years but they explained that they have to invest in infrastructure upgrades and that their investment plan will see them injecting an extra $260 million over the period so we agreed on 14 years,” he said.

“They also agreed to start the process of public listing which requires them to list at least 20 percent of the company shares within the first two years of licensing,” a source told The EastAfrican.

The newly-acquired National Telecom License will take effect from June 30, after which MTN will then have full geographical access coverage of Uganda. The company will also be able to improve the quality of telecommunication services and boost investment in the sector for both existing and new telecom operators.

Over the years, there have been constant clashes between government and MTN, which was accused of under-declaring its revenue and cheating the state on tax collections.

There were also allegations that the telecom company hired spies of the Rwandan government, undermining Uganda’s national security. This triggered the deportation of four top executives at MTN Uganda, including a Rwandan national last year.

According to a government spokesman, Ofwono Opondo, authorities are not after disintegrating MTN’s business but seek to fetch out the bad elements who are using the company’s system to compromise the economy and security of the country.

“The dispute between MTN and the government, in particular, is that MTN is making transactions and declaring far less in both the volume and the income and consequently it is cheating the government in tax revenue,” he said.

To address such issues, government introduced a new comprehensive policy guiding broadband licensing. Network operators are now issued permits under specific categories which include National Public Service Provider, Regional Public Service Provider, National Public Infrastructure Provider and Regional Public Infrastructure Provider.

The law also enables telecommunication companies to follow due procedures and select a preferred category to run their operations smoothly and effectively without having problems with the government.

Comments

Tags: MTN ugandaRob shutertopucc

Related Posts

BUSINESS

Desert Locusts’ Challenge: Government on high alert as FAO offers more support

March 5, 2021
22
Iraq welcomes Pope Francis with a song of fraternity: Ode to Joy
World

Iraq welcomes Pope Francis with a song of fraternity: Ode to Joy

March 5, 2021
54
Ronald Muyanja - Head of trading at Stanbic Bank (PHOTO/Courtesy).
BUSINESS

Stanbic PMI rises to 51.2 from 49.8 in January

March 5, 2021
51
BUSINESS

URSB launches Women in Business Club to support female entrepreneurship

March 5, 2021
25
UPC, NRM and DP Presidents Jimmy Akena, Yoweri Musev I and Norbert Mao respectively during IPOD meeting on Friday (PHOTO/Courtesy).
NEWS

Museveni says dialogue is the only solution to Uganda’s problems

March 5, 2021
361
French President Emmanuel Macron (PHOTO/File).
AFRICA

French President calls for urgent dispatch of Covid-19 vaccines to Africa

March 5, 2021
149

Advertisement






 

 

About

The PML Daily, published via www.pmldaily.com is a publication of Post Media Ltd, a professional Digital/New Media company in Uganda.

Follow us

KIU

  • EDITORIAL POLICY
  • ABOUT US

© 2021 PMLDAILY.COM.

No Result
View All Result
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines

© 2021 PMLDAILY.COM.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In