The
Deputy Attorney General Mwesigwa Rukutana has disregarded a directive to apply
to Court for the removal of Bemanya Twebaze as the Administrator of Uganda
Telecom Limited (UTL).
Bemanya was appointed Administrator of UTL following the exit of Ucom Limited,
a Libyan owned firm that owned 69 per cent shares in March 2017. He
entered into an Administration Deed and the shareholders ceded to him all their
powers to run the company.
But early this week, State Minister for Investment Evelyn Anite said that
government had encountered considerable difficulty dealing with the
Administrator and completely lost confidence in his ability to continue serving
the role of UTL Administrator. Anite asked the Attorney General to apply
to the court for orders replacing Bemanya.
However, Rukutana says the Finance Minister has no supervisory powers over the
Administrator. He explained that the removal of an administrator from office
requires that a creditor would be the person listed as competent to apply to
the court to remove an Administrator from Office.
“Whereas some Government entities may be listed creditors, they have
separate legal status. Accordingly, a shareholder in this instance, the
Minister of Finance Planning and Economic Development has no locus to apply to
the court to remove the Administrator from office,” Rukutana said in a
letter dated June 28.
He further guides that the grounds to remove an administrator must relate to
failure to comply with the duties imposed on the Administrator under the
Administration Deed, the Insolvency Act or any other law or any orders and
directions of court adding that he had not found any fault on the part of the
Administrator that warrants his removal.
“I have taken due cognizance of the fact that the Administration process
has been extended on three occasions and on the last two occasions, it was done
with the consent of the Minister of Finance. This consent is evidence of
satisfactory performance by the Administrator and the grant of an extension by
Court is further confirmation of this position,” Rukutana writes.
Rukutana further faults Anite’s quest for Bemanya’s removal on grounds that it
undermines a ruling by the Speaker of Parliament Rebecca Kadaga who clearly
stated that administration is a Court-controlled process and that neither the
legislature nor the executive should interfere with.
“I accordingly advise that the Minister of Finance as a shareholder of UTL
has no locus to apply to Court to remove the administrator and any such
application is bound to fail,” Rukutana added.
The letter further indicates that any interference with the administration
procedure might curtail the process of sourcing for a strategic investor which
is one of the duties of the Administrator. It also warns that if the company
shareholders frustrate the efforts of the Administrator to achieve the purpose
of the Administration Deed, the process may be challenged by the creditors and
the other shareholders and the company may end up in liquidation.
Bemanya’s current mandate as Administrator UTL expires on November 22, 2019,
following a ruling by High Court Judge Lydia Mugambe, which extended the
administration period for 1 year commencing November 22, 2018.
Following demands by Minister Anite to have an audit carried out on UTL, the
Administrator has declined the process insisting that the insolvency Laws of
Uganda require him to work independently of the shareholders with progress
reports made every six months to the company’s creditors and submit copies to
court and Registrar of Companies.
Attorney General, Anite Clash Over UTL Administrator Sacking
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