As WBS Receiver Manager, Karamagi-Kabiito carries the burden of history
KAMPALA, MAY 05 – Receiver managers in Uganda carry a reputation akin to that of the undertaker. The reason is simple; few in living memory recall a time when a Ugandan enterprise successfully emerged out of receivership. That is not to say there have been no exceptions but the catalogue of indigenous enterprises that went yonder after receivers took charge is simply compelling.
That is what places Karamagi-Kabiito, appointed Receiver Managers for WBS on by the Uganda Revenue Authority mid-April, in a unique position. They have the opportunity to recast the role and reputation of receivers in Ugandan business.
A good starting point would be some introspection. The reasons for the high mortality rate of Receiver managed enterprises in Uganda vary but the first revolves around an individual receiver manager’s definition of his mission and the options open to him. The other is that receivers are sometimes brought in long after an enterprise is past resuscitation and is already in the terminal phase.
In the latter case, the receiver will go for the low-hanging fruit and try to salvage whatever value for his primary client through liquidation. But also, sometimes, the receiver simply does not want to suffer the hard work of reviving a business when he can recoup his client’s value by simply auctioning the assets.
This is where Karamagi – Kabiito’s opportunity is. WBS is in default to URA not because the business was unviable but because it was internally misaligned. URA is also a client that can or should afford to be patient as long as they are assured of positive prospects for recovery of the obligations due.
It should therefore be possible to find a point of convergence that serves the interests of URA, Karamagi-Kabiito and Sir Gordon Wavamunno. By thinking a little outside the common box, Karamagi-Kabiito can change history and popular perception about the process of receivership.