MTN faces more problems in Uganda as authorities query its sales figures

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

Uganda deported MTN Uganda’s Chief Executive Wim Vanhelleputte last week, the fourth MTN official to be expelled from the East African country in less than a month on accusations of compromising national security.

The company is a unit of South African telecoms giant MTN Group, which has also had problems in Nigeria where the central bank last year accused it of repatriating $8 billion without the correct paperwork.

The row was later resolved after the company paid a token settlement. MTN Uganda has over 10 million subscribers and competes chiefly with the local unit of India’s Bharti Airtel.

Relations between the government and the company have been tested over the past year by a series of setbacks including a security raid on the company’s data centre, delayed renewal of its operating license and the expulsions of its executives.

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.

Government spokesman Ofwono Opondo said scrutiny of MTN came after the government acquired the capacity to monitor telecom firms’ transactions for tax compliance and reporting purposes. - REUTERS