Uganda stopped Huawei Technologies Co., China’s biggest maker of phone equipment, from laying fiber-optic cables valued at $106 million in the East African nation, New Vision Online reported, citing a letter from the National Information Technology Authority.
The Chinese company will halt its work until after an investigation about the use of a poor-quality cable and inflated costs is concluded, the Kampala-based newspaper reported, citing Igeme Nabeta, the head of the parliamentary committee on information, communication and technology. Huawei will carry out repairs on the 2,100-kilometer (1,305-mile) cable at its own cost if faults are detected, according to New Vision.
The project, financed through a loan from the Chinese government, started in 2006, it said.
To contact the reporter on this story: Fred Ojambo in Kampala via Johannesburg on firstname.lastname@example.org.