What you need to know:
More than 400 workers accuse MTN Mobile Money Uganda Ltd of evading financial and legal obligations as it restructures its mobile money operations
MTN Uganda’s corporate restructuring plan has run into a petition by more than 400 former workers, hired through its former service provider, Rural Digital Media Ltd (RDM), over unpaid wages and abrupt terminations. In a July 30 petition, addressed to the Capital Markets Authority (CMA), Uganda Securities Exchange (USE), and the Bank of Uganda’s National Payment Systems, 432 workers accused MTN Mobile Money Uganda Ltd of evading financial and legal obligations as it restructures its mobile money operations into a standalone fintech company. “We were hired… on the instructions of MTN Mobile Money Uganda Limited to do merchant quality management… only to be told that MTN is not in a position to pay our salaries and commission… without any reason whatsoever,” the petition reads in part.
The petitioners said they worked between May and June, but have not received salaries, commissions, or retainers for the two months, despite completing assignments across the country. They added that individual employees have attempted unsuccessfully to get responses or payments from MTN Mobile Money Uganda Limited. “Our own individual attempts to either get paid or seek guidance from the line managers at MTN Mobile Money Limited have been unsuccessful,” the petition further reads. They further allege that MTN orchestrated the transfer of more than 400 employees to RDM before abruptly terminating the contract, leaving them vulnerable to massive layoffs. “Our sudden layoff entitles us to payment in lieu of notice, which has not been made. It also raises concerns about MTN Uganda’s intention and potential evasion of responsibility,” the petition reads.
The group is demanding that regulators block or postpone the restructuring unless the company clears all outstanding dues. “We are worried that the restructuring … may be designed to avoid accountability for outstanding payments,” the petition states. The workers also call on CMA, USE, and BoU to investigate the restructuring process for potential breaches of labour laws and corporate governance. “If our concerns are not addressed promptly, we will be forced to take action, including protesting the unfair treatment of the petition,” the petitioners add. Efforts to get a comment from MTN Mobile Money Uganda Ltd were futile by press time. BoU Communications Director Kenneth Egesa said he needed time to scrutinise the petition. He said the management would then engage the various stakeholders over the matter.
Mr Egesa promised a detailed email response to the Daily Monitor regarding the outcome. Mr Paul Bwiso, the chief executive officer at USE, said he was busy and promised to give details later. By press time, we had not yet received the details he promised and attempts to contact him again were futile. CMA Chief Executive Officer Josephine Okui Ossiya was not immediately available for a response. Industry analysts warn that unresolved labour claims of this scale — especially involving a listed and highly visible company — poses reputational, legal, and regulatory risks. “A pending labour dispute of this magnitude in unpaid liabilities—should have been disclosed as a material risk to regulators and investors. Any omission could raise serious corporate governance questions,” said a senior compliance analyst who requested anonymity.
Background
The Bank of Uganda, under the National Payment Systems Act (2020), previously issued payment system licenses to MTN Mobile Money Uganda Ltd and Airtel Mobile Commerce—regulatory steps that formally separated mobile money operations from telecom services.
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