MTN Uganda has responded to a ruling by the High Court where the telecom giant lost a casein which it was challenging the payment of US$14, 140,030 (UGX50 billion) as license fees for a three-year transitional period from October 21, 2018 to June 30 2020.
In a Tuesday 4th May 2021 statement, MTN says: “On April 24, 2021, MTN Uganda received a ruling from the Civil Division of the High Court of Uganda, (Miscellaneous Cause Number 240 of 2020), in relation to a transitional license fees of US$ 14,140,030 (United States Dollars Fourteen Million, One Hundred Forty Thousand, thirty only) assessed by Uganda Communications Commission (UCC) for the period October 2018 to June 2020.
Intent to appeal the ruling
The telecom says while it respects the decision of the High Court, thee matter will be reviewed by Court of Appeal.
“While MTN Uganda respects the decision of the High Court; it appreciates that the Laws of Uganda provide an opportunity to have this matter reviewed by the Court of Appeal. MTN is confident that the Court of Appeal will at an appropriate time, consider all matters raised by MTN comprehensively and pronounce itself in accordance with the law and evidence on record,” the statement reads.
“MTN Uganda is a responsible corporate citizen committed to meeting all its lawful obligations and remains committed to playing its part in the development of the telecommunication industry and Uganda as a whole,” the telecom concludes.
Background
Inside the Balance Sheet: CFO Doreen Kyomugisha on Building Capital Strength and Financial Discipline at SanlamAllianz General UgandaLast month, MTN Uganda Limited lost a High Court legal battle in which it was challenging the payment of $14, 140,030 (UGX50 billion) as license fees for the three-year transitional period.
MTN Uganda had been challenging the payment of a licence fee of $14,140,030 for the transitional period October 21 2018 to June 30 2020, after its license had expired pending renewal.
Through its lawyers, Sebalu & Lule Advocates, MTN Uganda Limited, had asked the court to declare that any licence fee for the transition period should be determined with reference to the company’s Second National Operator (SNO) licence.’
But UCC in a letter dated July 22 2020, directed MTN to pay a licence fee for the transitional period October 21 2018 to June 30 2020 worth US $14,140,030.
In their suit against UCC, the telecom company unsuccessfully argued that at the time of the demand for transition license fees, no legal or regulatory framework for determination of fees for the transition period existed.
Justice Musa Ssekaana agreed with UCC’s pleadings and held that there was no procedural impropriety in the UCC decision while imposing transition fees based on a pro-rated assessment and that the same was fairly arrived at and guided by the amount paid for of US$100,000,000 in the currently renewed license.
