Uganda: WBS Closes, Assets Sold Over Failure to Pay Shs7 Billion

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Scores have been left jobless following the closure of WBS TV and sale of its assets after it failed to clear Shs7billion tax debt.
According to a statement signed by Mr Kabiito Karamagi, the Receiver/Manager, appointed by Uganda Revenue Authority (URA) under receivership, WBS will cease to operate effective December 14, this year.

“I therefore wish to confirm the numerous media rumours that you must have read about that the assets of the company have been sold to a respectable regional outfit that promises to give you a much better product and partnership that WBS could possibly have ever given you,” Mr Karamagi said.
Karamagi stated that the decision had been approved by Uganda Communications Commission. He did not name the investor, but there are several reports that a deal was reached.
This has come at a time when the TV station was trying to recover unpaid taxes of Shs7billions according to the statement. The TV station had been placed under receivership by URA.

“Unfortunately, this option proved un-viable on account of lack of capital to meet urgent needs necessary for the preferred turnaround strategies. As a result, the only option available was to sale the company’s assets to realize the monies due,” Mr Karamagi further said.
Last month, Mr Karamagi had indicated that the proceeds from the sale of the assets will be used to settle creditor claims in accordance with the priority and ranking stipulated under law.

He also added that in view of the eminent transfer of the company assets to the investor, some WBS staff have been disengaged as the company will soon have no business to run.

©Alleastafrica and Daily monitor

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