Uganda Halts a $106 Million Fiber-Optic Project by Huawei, New Vision Says

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 pmrichardson@bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.