UBC cash deficit switches off free-to-air TV channels in Uganda

KAMPALA; Free-to-air television stations across Uganda have been off air for nearly a month due to an acute financial shortage at the national broadcaster, the Uganda Broadcasting Corporation, and its signal distribution affiliate, Signet Uganda.

Sources within UBC revealed the broadcaster’s efforts to restore service are hampered by a cash squeeze that has prevented it from paying taxes on critical equipment, including more than four transmitters and spare parts currently held in Entebbe.

Signet, which handles the distribution of all free-to-air signals, was established in 2015 when UBC split its functions into content generation (UBC) and signal distribution (Signet) to manage the country’s migration from analogue to digital broadcasting. The platform’s failure has left many viewers who cannot afford paid television services in a blackout.

Equipment Held Over Unpaid Taxes

UBC Managing Director Winston Agaba confirmed the equipment is being held in Entebbe over unpaid taxes. Agaba explained that he has not pushed for a special government-to-government arrangement, noting that the Uganda Revenue Authority, or URA, has previously treated the national broadcaster aggressively over tax arrears.

“There was a time when URA came with seals, saying: ‘UBC, we are going to close you,’” Agaba said. “I raised arguments about this being a government institution, but was told that they had targets and were starting with us who were soft targets.”

Sources revealed that URA has previously attached UBC’s bank accounts to recover tax arrears. Robert Kalumba, public and corporate affairs manager at URA, could not be reached for comment.

Dr. Chris Baryomunsi, the minister for Information and Communication Technology, said the situation with the spares was news to him.

“It had not been brought to my attention, but let me find out,” Baryomunsi said. “This is government-to-government. Why would they not allow it to clear the items and then they can pay later?”

Longstanding Financial Woes

UBC, which also runs 11 radio stations, has long faced financial difficulties tied to the failure to implement aspects of the UBC Act of 2005, which provided for a television tax that never became operational.

Agaba noted that while some money was provided for the equipment currently in Entebbe, the final release from the Ministry of Finance was less than what Parliament had appropriated.

The financial troubles have resulted in large debts estimated at nearly 30 billion Ugandan shillings. Sources indicated that the corporation owes URA about 7 billion shillings in unremitted taxes and the National Social Security Fund 15 billion shillings in unremitted workers contributions.

Additionally, UBC owes the Uganda Electricity Distribution Company 3 billion shillings in unpaid electricity bills, the National Water and Sewerage Corporation 600 million shillings in unpaid water bills, and has loans with dfcu Bank (1.2 billion shillings) and Stanbic Bank (500 million shillings).