Uganda grabs control of more Libyan interests

KAMPALA, (Reuters) – Uganda’s government said today it had seized control of Libya’s majority stake in Uganda Telecom to comply with U.N. sanctions.

Uganda has begun freezing Libyan assets in east Africa’s third largest economy worth $375 million.

“We have exercised our oversight and regulatory role and decided to impose an oversight regime on the company,” Information, Communication and Technology Minister Aggrey Awori told Reuters.

Last week Uganda’s central bank said it would appoint new members to the board and management of Libyan-owned Tropical Bank in accordance with the sanctions to ensure it could continue to operate as a commercial bank.

Libya has majority stakes in Uganda Telecom, National Housing and Construction Corporation, Tropical Bank, Lake Victoria Hotel and Tamoil, which is preparing to build a pipeline from western Kenya to Kampala.

Uganda is a member of the African Union ad hoc committee trying to mediate a resolution of the Libyan conflict after the United Nations authorised air strikes to protect Libyan civilians from forces loyal to leader Muammar Gaddafi.

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