The High court in Kampala has appointed Ruth Sebatindira, the former president of the Uganda Law Society as the new administrator of Uganda Telecom Limited (UTL). Sebatindira will replace Nelson Bemanya whose contract expired in November 2019.
The decision follows an application filed on December 17, 2019, by the Uganda Contribution Employees Contributory Pension Scheme (UCECPS) through their lawyers led by Johnson Kwesigabo. They sought orders compelling Bemanya to be removed from office and replaced with a one Nicholas Mwasame or such other eligible insolvency practitioner.
The applicants faulted Bemanya for failing to collect the outstanding amounts due to UTL from the government and its departments in terms of the deed of administration and failure to find an investor to recapitalize and operate the telecom. Bemanya was also faulted for failing to pay in full all claims against UTL within the administration time and to conclude the administration within the period stipulated.
The government is the biggest creditor of UTL with a bill of more than Shs 207 billion. In a
Kampala High Court has announced former Uganda Law Society President Ruth Sebatindira as the new UTL administrator, replacing Bemanya Twebaze.
Justice Lydia Mugambe of the Civil Division of the High Court made the ruling on Thursday, January 02, 2020, after hearing of submissions in regard to an application in which the Uganda Contribution Employees’ Contributory Pension Scheme (UCECPS) were seeking to vary the deed of administration of UTL to replace him with another person.
Through their lawyers of Kwesigabo, Bamwine and Walubiri Advocates, the creditors were accusing Mr Bemanya of failing to perform his roles in regard to collecting the outstanding amounts due to UTL from government departments.
They allege that Mr Bemanya failed to find an investor who can recapitalize and operate and operate UTL as well as paying in full all claims against UTL within the administration time.
“That I know that the purposes of taking UTL into administration was to enable the Company reorganize its affairs in such a way as to be able to settle the dues owed UCECPS and several other UTL Creditors, rather than going into immediate liquidation,” said David Nkojjo in a sworn statement.
Mr Nkojjo, the chairperson of UCECPS contends that Mr Bemanya failed to pay outstanding workers’ contribution at the time of taking over and also to remit current contributions even though the same are being deducted from workers’ pay.