Have you been experiencing network outages with Vodafone Uganda and hoping a change will come so soon? Wait a little longer. The latest developments spell it out that the Civil Division of the High court of Uganda has appointed a Provisional Administrator Manager, Mr. Donald Nyakairu, to be in charge of restructuring and reorganizing the company in a bid to improve commercial and operational efficiencies.
This will be in addition to an interim protective order granted to Afrimax, the holding company of the Vodafone brand in Uganda, for a period of three months. As a result, in the interim transition period, Vodafone Uganda customers should expect a temporary deterioration in the quality of the network services as the Administrator implements the required changes and negotiates with suppliers.
Many statements have come out to claim that this could be the end of the firm, with a protective order signaling bankruptcy in a bid to bar unsecured claims by creditors or the release of confidential or potentially harmful information. But we will not open the envelope yet, let’s stick to what we know best.
In a statement issued by the company via their Facebook handle, it was stated that the appointment is routine, and follows a decision by the Board.
“The appointment of a Provisional Administrator is a standard business practice that aims to improve the fortunes of a company facing financial or administrative challenges. The Provisional Administrator, in carrying out this mandate, has a professional duty to be independent and accountable to the diverse groups of people with different interests in the Company. These include directors, shareholders, creditors employees and customers. He will treat all these groups fairly and in accordance with their legal rights,” stated the note.
“We have communicated this development to the Uganda Communications Commission and other relevant authorities who have expressed their full support for our efforts. The board and the shareholders are confident that given Mr. Nyakairu’s vast experience in the telecommunications sector, this appointment will have a positive transformative impact on the Company and allow Vodafone Uganda to continue providing Uganda’s best 4G voice and data experience.”
Rumours have been making rounds of the telecom company quitting the industry following consistent network outages, and we actually ran a story on the same, but these have always been refuted.
We can only watch the space for any further developments.