Government Bails Out UBC with Shs20bn

Government Bails Out UBC with Shs20bn

By Serestino Tusingwire

The financially constrained Uganda Broadcasting Corporation (UBC) is expected to be back on its feet soon after President Museveni directed the finance minister Matia Kasaija to give it Shs20bn in bail out.

This comes after it emerged that the national broadcaster’s debt burden had soared to nearly Shs29 billion.

ICT minister Frank Tumwebaze on Friday confirmed the directive, saying it had been prompted by a request from his ministry.

“We requested for Shs20b which the President agreed to, but the Ministry of Finance is first of all doing a forensic audit into UBC before it releases the funds,” he said.

A few weeks ago, there was mass resignation of top corporation officials claiming that they had not received their salaries for over 10 months.

According to the Uganda Broadcasting Act 2005, the corporation is supposed to be surviving on TV tax.

However, Winston Agaba, the managing director said that TV tax income is so little to run the programs of the corperation and pay its employees.

It should be remembered that the corporation runs two television stations and 11 FM radio stations.

The country is currently in severe economic turbulence that saw crane bank taken over by bank of Uganda over failure to meet terms of operation. Museveni later gave it Shs200bn in bail out.