Without authority from the UCC, Smile telecom discontinued its services in January last year, attracting a fine of up to 10 per cent of its gross annual revenue.
KAMPALA – Auditor general John Muwanga has criticised the Uganda Communications Commission (UCC) for failing to recover UGX 2 billion from Smile Telecom, the Daily Monitor reported.
Part of the money, he said, was outstanding payables and for licence violation.
Without authority from the UCC, Smile discontinued its services in January last year, attracting a fine of up to 10 per cent of its gross annual revenue.
UCC did not suspend or revoke the licence, as guided by the law.
Muwanga said the regulator did not fine Smile for violating the terms and conditions of the licence.
He noted that Smile Telecom has an outstanding obligation of UGX 227.3 million and USD 505,079 payable to UCC.
Because the UCC had not put measures in place to recover the money, there was a risk of losing the funds, given that Smile Telecom had discontinued its services.
In response to the audit query, Eng. Irene Kaggwa Ssewankambo, executive director of UCC informed the auditors that effective 01 July 2020, the UCC introduced a new licensing framework where all existing operators were required to apply for licences of their choice and transition to the new licences.
In the meantime, all existing operators were given the authorisation to continue providing services as the regulator was evaluating their licence applications.
She added that as part of the transition, Smile telecom applied for a Regional PSP and National PIP but midway, changed its application to a Regional PIP and Regional PSP licence.
The process is still ongoing. Save for the general authorisation issued to all transiting operators, Smile Communications does not hold a valid licence.
Recommended for you
