Parliament has reported that Posta Uganda, the country’s national postal service, is struggling with a massive debt of UGX 1.7 billion from unpaid license fees. This debt has been building up since 2017 and is linked to the expiration of the company’s mail and deposit license in 2021.
The revelation came out during a meeting on November 18, 2024, between the Parliamentary Ad Hoc Committee, which is investigating Posta Uganda’s financial issues, and officials from the Uganda Communications Commission (UCC).
Abudu Sallam Waiswa, who heads Legal Affairs at UCC, shared the troubling news regarding Posta Uganda with the committee. He stressed the urgency for the company to renew its expired license.
“We are ashamed to say this. Even their license expired in 2021, and we have repeatedly told them, please apply for renewal of your license,” Waiswa stated.
According to Waiswa, without a valid license, Posta Uganda is facing serious operational challenges. He urged the company to take action quickly amidst its financial difficulties.
“These letters are many, but we have been telling them, please apply for a license so that we deal with other operational issues because you can’t operate effectively without a license,” said Waiswa.
The UCC has defended its decision to allow Posta Uganda to continue operating despite its licensing problems. They pointed out that Uganda is required by the Universal Postal Union Convention to have a designated postal operator, which currently is Posta Uganda.
However, UCC officials, including Waiswa, expressed worry about the implications if Posta Uganda fails to address its financial issues. They mentioned that if the situation does not improve, the UCC might have to consider designating a private company as the national postal operator, similar to what has happened in Algeria, Egypt, and Morocco.
Waiswa explained, “As UCC, we know that Posta is our operator locally here. So we can’t be seen internationally that we have closed postal operations. If we do, we must be able to present to the Universal Postal Union who else we have designated. In fact, in one of the meetings at Parliament, we were being blamed for not closing Posta Uganda because of the debt and not having a license, but we are aware of the international obligations and the critical role they play. That is why sometimes our hands are tied; how do we balance the two?”
The alarming news has raised concerns about the future of Posta Uganda and the urgent need for a solution to avoid further problems in its operations. As Parliament and the UCC continue discussions, they are searching for ways to uphold Uganda’s commitments while ensuring the effectiveness of its postal services.