MTN in Hot Soup as Ugandan Authorities Query Sales Figures

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Uganda has accused the country’s biggest telecoms operator, MTN Uganda of under-declaring its sales and causing public revenue losses, in a further souring of relations with the South African-owned company.

According to Reuter’s reports, Uganda deported MTN Uganda’s Chief Executive Wim Vanhelleputte last week.

Wim Vanhelleputte is the fourth MTN official to be expelled from the East African country in less than a month on accusations of compromising national security.

MTN Uganda is a unit of South African telecoms giant MTN Group, which has also had problems in Nigeria after been accused of repatriating $8 billion without the correct paperwork. The row was later resolved after the company paid a token settlement.

MTN in Hot Soup as Ugandan Authorities Query Sales Figures

MTN Uganda has over 10 million subscribers and competes with the local unit of India’s Bharti Airtel.

The company has also been under political pressure to list its shares on the local bourse to facilitate domestic ownership of the company and ensure more of the money it earns stays in the country.

Uganda Government spokesman, Ofwono Opondo, also said critical observation of MTN came after the government acquired the capacity to monitor telecom firms’ transactions for tax compliance and reporting purposes.

MTN Uganda’s spokeswoman Justina Ntabgoba said the government had not been given any details of the alleged underreporting of transactions.

“We have not gotten any official communication, so we don’t have a response. Once we receive an official communication then we can respond,” she said.

MTN has been operating in Uganda since 1998 when it secured a 20-year operating license that expired last October. In 2017 it began a process to obtain a 10-year extension but that has dragged on amid disagreements over the size of the fees to be paid for the extension and other issues.

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The Uganda business contributes about 4 percent of MTN Group’s earnings before interest, depreciation and amortisation.

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Emmanuel Ikechukwu

Emmanuel Ikechukwu has been reporting for AprokoGist for more than a year now. He studied Electronics and Computer Engineering at the University of Portharcourt and loves writing News, Tech and Educational articles. You can check about me page for full details of contact info https://about.me/emmanuelikechukwu

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