Sheraton, Barclays, deny Govt directive to float shares
Jun 26, 2007
SHERATON Hotel has not received any directive from the Government to list 20% of its shares on the stock exchange, the general manager has said. “We have not received any formal communication from the Government to that effect. However, we have sent the newspaper clippings on the issue to our head
By Mary Karugaba
SHERATON Hotel has not received any directive from the Government to list 20% of its shares on the stock exchange, the general manager has said. “We have not received any formal communication from the Government to that effect. However, we have sent the newspaper clippings on the issue to our headquarters in Dubai,†Jawaid Akhtar said.
“In case any information comes up, we shall also send it to the hotel owners for action,†he said. Akhtar was responding to press reports that Sheraton, Barclays Bank, Kakira Sugar Works and uganda telecom (utl) had breached their sale agreements to float shares on the stock exchange.
The MPs on the public accounts committee gave the quartet a one-year deadline to honour their contracts or risk losing business.
This followed complaints by the deputy secretary to the Treasury, Keith Muhakanizi, that the companies had failed to list despite several reminders.
“I request that you put more pressure because every time we tell them to list, they argue that there is no market and they are not making profits,†Muhakanizi told the MPs.
He said the ministry had asked the Solicitor General to take action against the companies for breach of contract.
Under the share sale and purchase agreements the Government signed with the quartet, Barclays was supposed to list 25%, uganda telecom 49% or a portion of 49%, Sheraton not less than 20% and Kakira not less 10%.
The agreements were signed between 1996 and 2000. The companies were supposed to list within five years from the sale date.
Nick Mbuvi, the Barclays managing director, declined to comment on the issue.
“I don’t comment on stories in the newspapers,†he said. Asked whether he had received any communication from the finance ministry on the issue, Mbuvi retorted: “I have no comment.â€
Hans Paulsen, the uganda telecom commercial director, said he was out of the country and had not heard anything to that effect.
“I don’t know anything. That is news to me,†he said on phone.
SHERATON Hotel has not received any directive from the Government to list 20% of its shares on the stock exchange, the general manager has said. “We have not received any formal communication from the Government to that effect. However, we have sent the newspaper clippings on the issue to our headquarters in Dubai,†Jawaid Akhtar said.
“In case any information comes up, we shall also send it to the hotel owners for action,†he said. Akhtar was responding to press reports that Sheraton, Barclays Bank, Kakira Sugar Works and uganda telecom (utl) had breached their sale agreements to float shares on the stock exchange.
The MPs on the public accounts committee gave the quartet a one-year deadline to honour their contracts or risk losing business.
This followed complaints by the deputy secretary to the Treasury, Keith Muhakanizi, that the companies had failed to list despite several reminders.
“I request that you put more pressure because every time we tell them to list, they argue that there is no market and they are not making profits,†Muhakanizi told the MPs.
He said the ministry had asked the Solicitor General to take action against the companies for breach of contract.
Under the share sale and purchase agreements the Government signed with the quartet, Barclays was supposed to list 25%, uganda telecom 49% or a portion of 49%, Sheraton not less than 20% and Kakira not less 10%.
The agreements were signed between 1996 and 2000. The companies were supposed to list within five years from the sale date.
Nick Mbuvi, the Barclays managing director, declined to comment on the issue.
“I don’t comment on stories in the newspapers,†he said. Asked whether he had received any communication from the finance ministry on the issue, Mbuvi retorted: “I have no comment.â€
Hans Paulsen, the uganda telecom commercial director, said he was out of the country and had not heard anything to that effect.
“I don’t know anything. That is news to me,†he said on phone.