By Kato Jamil
The Uganda Communications Commission (UCC) has revealed that Posta Uganda’s mail and deposit license expired in 2021, leaving the company in arrears of UGX 1.7 billion in unpaid license fees since 2017.
Abudu Sallam Waiswa, Head of Legal Affairs at UCC, disclosed this information to the Parliamentary Ad hoc Committee investigating Posta Uganda’s financial troubles. Waiswa highlighted the urgency of a government bailout to prevent the national postal operator from financial collapse.
“We are embarrassed to say their license expired in 2021, and we have continuously asked them to renew it. Despite their challenges, they cannot operate without a valid license,” said Waiswa, adding that UCC has sent multiple reminders to Posta Uganda.
The UCC explained its reluctance to close down Posta Uganda due to the strategic role it plays as Uganda’s designated postal operator under the Universal Postal Union (UPU) Convention, which requires member countries to maintain a national postal entity.
“We are aware of our international obligations,” said Waiswa. “We must balance national interest and our UPU commitments, which bind us to have a national operator.”
Should Posta Uganda be unable to resolve its financial issues, UCC may recommend that the government designate a private company as Uganda’s national postal operator, similar to models adopted in Algeria, Egypt, and Morocco. Waiswa noted that while international players like DHL might be interested, the private sector may not fully meet the logistical and universal service needs currently covered by Posta Uganda.
During the session, it was revealed that Posta Uganda owes Uganda Telecom UGX 5.5 billion in rent and the Uganda Revenue Authority (URA) UGX 1.4 billion in Value Added Tax and UGX 1.2 billion in rental tax arrears.
Thembo Nyombi, Executive Director of UCC, urged Parliament to support Posta Uganda by bailing it out and helping it re-engineer its operations to tap into Uganda’s growing logistics sector. “They need financial leverage and investment to redefine their business. Posta Uganda’s logistical role is essential, and it should not be left solely to private entities,” said Nyombi.
He also emphasized that UCC has refrained from enforcing penalties on Posta Uganda’s licensing lapses due to its status as a national asset, adding, “This is an important national operator, and we must support it.”
The UCC officials also recommended Posta Uganda look to Posta Tanzania as a model for operational excellence, highlighting Tanzania’s success in logistics for critical sectors, including examination delivery and medical supplies.
Committee Chairperson Faith Nakut echoed the call for government intervention, stating, “Uganda’s postal services must be preserved. This investigation will guide re-engineering efforts to decide on the necessary government actions.”
The Ad hoc Committee was formed by Speaker Anita Among in response to a report by the Auditor General, which pointed to significant management gaps within Posta Uganda, including UGX 20.4 billion in unpaid liabilities, UGX 45 billion in court awards, and payroll liabilities of UGX 3.2 billion.
