Uganda: Audit delays decision on rationalisation of Asian property board and Non-Performing Assets Recovery Trust (NPART)

Parliament of Uganda has directed that the rationalisation of the Non-Performing Assets Recovery Trust (NPART) and Departed Asians Property Custodian Board will only be concluded after an audit. The debate on the Non-Performing Assets Recovery Trust (Amendment) Bill, 2024 took place on Tuesday, April 23, 2024. The Bill aims to dissolve the Trust, the Board of Trustees, and the Sinking Fund under the NPART, which was established to recover loans and investments made by the Uganda Commercial Bank (UCB) in 1994.

The committee scrutinising the Bill highlighted the need for transparency, especially in the absence of an inventory list of the Trust’s assets. The chairperson of the committee, Hon. Amos Kankunda, emphasized the importance of receiving a thorough inventory before repealing the law or dissolving the Trust.

The Minister of State for Finance (Microfinance), Hon. Haruna Kasolo, requested time to conduct an audit following the committee’s concerns. The Minister also withdrew the Tier 4 Microfinance Institutions and Money Lenders (Amendment) Bill, 2024, which aimed to rationalise the Uganda Microfinance Regulatory Authority (UMRA).

Speaker Anita Among guided the minister to scrutinise the report of the Departed Asians Custodian Board to aid in the audit process. The committee recommended rejecting the repeal Bill until a comprehensive inventory of the Trust’s assets is provided to Parliament.

Overall, the focus is on ensuring transparency, accountability, and proper regulation in the management of non-performing assets and departed Asians’ properties to align with the Government’s policy on rationalisation of government agencies and public expenditure.