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Some of the ad-hoc committee members after the visit
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By Our Reporter
PARLIAMENT - A parliamentary ad-hoc committee investigating Uganda Posta Limited (UPL) has uncovered that the company has been operating without a valid license, raising concerns over its compliance with regulatory standards. The revelation was made during the second day of the inquest, chaired by Karim Masaba (Mbale Industrial Division, Independent), who expressed dismay over the situation.
Masaba informed the committee that during an interface with officials from the Uganda Communications Commission (UCC) on Monday, it was revealed that UPL’s operational license had expired.
“According to UCC’s submission, a five-year license costs $50,000 (approximately sh182 million), which translates to $10,000 (sh37 million) per year. It is disturbing that UPL cannot pay this manageable amount, choosing instead to operate illegally,” Masaba said.
Financial mismanagement exposed
The committee also learned of financial mismanagement within UPL, including overdrafts exceeding sh2 billion over the past two years to cover board member payments, some of whom are former MPs.
Masaba criticized the company’s priorities, pointing out that funds spent on airtime allowances alone—estimated at sh93 million annually—could be reallocated to pay for the license.
“Honorable Minister, you mentioned financial challenges. However, with prudent management, cutting expenses like airtime allowances could easily free up funds for licensing,” Masaba added.
Minister promises action
State Minister for Information, Godfrey Kabyanga, acknowledged the lapse, confirming that UPL’s license had indeed expired. “We already have information on this, and I promise to investigate further and present the necessary documentation,” Kabyanga assured the committee.
Ad-Hoc committee’s mandate
The ad-hoc committee, chaired by Faith Nakut (Napak Woman MP, NRM), was formed on October 14 following concerns raised in a COSASE report based on the Auditor General's findings for the fiscal year ending June 30, 2023. The six-member committee also includes Karim Masaba, Moses Aleper (Chekwii County, NRM), Herbert Tayebwa (Kashongi County, NRM), Xavier Kyooma (Ibanda North, NRM), and Prof. Elijah Mushemeza (Sheema South, Independent).
History and challenges of UPL
Uganda Posta Limited traces its roots to the East African Community (EAC). Following the dissolution of the EAC in 1977, the East African Post and Telecommunications Corporation was renamed Uganda Posts and Telecommunication Corporation (UPTC).
In 1998, UPTC was split into three independent entities
Posta Uganda Limited, Uganda Telecom Limited and Uganda Communications Commission (UCC)
Posta Uganda was initially overseen by the Ministry of Works and Transport before being transferred to the Ministry of ICT and National Guidance, with the Ministry of Finance holding the majority of shares.
However, MPs revealed that asset-sharing disputes dating back a decade have hindered operations. These disputes have led to tenants refusing to pay rent for office spaces and telephone masts, accumulating over sh4.5 billion in unpaid rent by July 2022, as noted in the Auditor General’s report.
Minister attributes Issues to transitional mistakes
Minister Kabyanga attributed the challenges to transitional missteps, saying efforts are underway to resolve them.“Some assets, such as post office buildings and boxes, remain under contention. For instance, in Fort Portal, Uganda Telecom Limited (UTL) refuses to let Posta relocate to the Bank building, claiming ownership,” Kabyanga said.
The committee has promised to delve deeper into these issues, with MPs pushing for financial discipline and accountability to restore UPL’s compliance and operational integrity.
Torch Media Africa
