Uganda Judge Rules Mobile Money Operations by MTN, Others As illegal

Commercial court Justice, Christopher
Madrama made the pronouncement in
Kampola on Friday.
An Ugandan court has pronounced that
the mobile money business being
operated by the five major
telecommunication companies in Uganda
is illegal.
Commercial court Justice, Christopher
Madrama made the pronouncement in
Kampola on Friday.
The judge had made the pronouncement
during a a case where Bugweri County MP
Abdu Katuntu had filed a petition seeking
for a declaration to have mobile money
regulated under the financial
institutions act.
Katuntu wanted a declaration that the
mobile money services are currently
operating outside the license issued to
them by the Uganda Communications
Commission (UCC) to operate as
telecommunication companies.
In the suit, he alleged that the mobile
money operators; MTN , Warid , Uganda
Telecom , Airtel and Africell are registered
as telecommunication companies, not
financial institutions.
Justice Madrama agreed saying, “MTN is
not a financial institution. It needs to
obtain a license from either bank of
Uganda or any other commercial bank to
carry out financial businesses and
operate mobile money.”
However, Madrama dismissed the case
saying it was instituted in the wrong
court, adding the plaintiffs should have
raised the issue before a tribual setup by
UCC to handle such matters.
He said under the Uganda
Communications Act, Parliament ruled
under section 75 to establish a tribunal
and an office of a technical advisor to
determine matters under the Act. The
jurisdiction of the tribunal is provided
for under section 79 and includes the
right to hear all matters relating to the
telecom services.
In a related development, an Ugandan
pop singer Panado wa Basajja also faces a
10-year jail term for allegedly producing
a raunchy promotional video for her
song, ‘Ensolio Yange’ (Medicine for Men).
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