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Uganda govt. seizes Libyan assets

March 31, 2011 • Mobile and Telecoms, Top Stories

As the civil war in Libya intensifies, Uganda annexes Libyan assets (Image: file photo)

The government of Uganda has seized control of Libya’s majority stake in the country’s Uganda Telecom, but concerns over how the management will be shifted remains a concern among observers and analysts.

“We think the move was right, considering the ongoing unrest in Libya and uncertainty how they will continue to run the company, if they are even able to do so,” a leading government analyst said. He added that “it is also something that was a long time coming considering the global anger at the Libyan government.”

According to Information, Communication and Technology minister Aggrey Awori, the move by the government is a sign that it will continue to exercise its oversight role and comply with United Naitons sanctions against the Libyan government’s assets worldwide.

“We have to monitor all the transactions in conformity with the rules and now they cannot make certain decisions without our knowledge,” the minister said in a public speech.

The Libyan government owns 69 percent of Uganda Telecom as part of its investment branch, Libya Africa Investment Portfolio.

Uganda Telecom becomes the second Libyan government entity to fall under the Ugandan government’s control in as many weeks. Last week, Bank of Uganda took over controlling power of Tropical Bank. The Libyan Foreign Bank had owned 99.7 percent of Tropical Bank’s portfolio.

“The situation will be stabilized and all uncertainties will be eliminated within a week,” added the minister.

He added that the ministry was continuing to monitor the situation and current employees at the telecom operator would not be out of a job.

by Staff

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