MPs Halt Plan To Dissolve Departed Asians Custodian Board

MPs Halt Plan To Dissolve Departed Asians Custodian Board

Posted on 25 September 2024 0
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By Spy Uganda 

Parliament has halted the government’s plan to dissolve the Departed Asians Properties Custodian Board (DAPCB), citing unresolved court cases over the ownership of expropriated properties.

The government had proposed winding up the board under the ongoing rationalization of government agencies by amending the Assets of Departed Asians Act, 1973.

The Custodian Board has managed properties, particularly buildings, that were either compensated for by President Idi Amin after the expulsion of Asians in 1972 or were later repossessed by returning owners.

However, controversies surrounding ownership of prime properties, especially in Kampala, remain unresolved, with several cases still before the courts. Workers’ MP Abdul Byakatonda led the opposition to the proposed amendment, warning that passing the bill before the resolution of these legal cases would jeopardize the government’s claim to many of the disputed properties.

Byakatonda, who previously chaired the DAPCB Divestiture Committee, invoked Rule 73 of Parliament’s Rules of Procedure, stating that the amendment would violate the principle of subjudice, as many of the properties are subject to ongoing legal battles.

“The bill being considered in Parliament is actively being used in court cases where the government, through the Attorney General, is fighting to recover over 1,000 properties. Just last Friday, a case was heard at LDC Court using the same Act,” Byakatonda said.

He argued that it would be procedurally inappropriate for Parliament to debate and pass a bill that could influence the outcome of court proceedings. Byakatonda revealed that one of the government’s major legal disputes involves property mogul Muhammad Allibhai over approximately 1,000 properties.

Shadow Attorney General Wilfred Niwagaba supported Byakatonda, stressing that winding up the Custodian Board would nullify ongoing legal claims, leaving the government without recourse. “Once the Custodian Board is dissolved, it will no longer exist, and neither will the claims. We must apply the subjudice rule strictly and not wind up this Board until these cases are resolved,” Niwagaba argued.

Former Leader of the Opposition Mathias Mpuuga echoed these concerns, noting that the Ministry of Finance had failed to provide Parliament’s Budget Committee with proper documentation justifying continued funding for the Custodian Board. He warned that rushing to wind up the entity could obscure significant issues of accountability.

“The Custodian Board’s matters were brought before the Budget Committee, and we found no audit or comprehensive inventory of the properties under its management. Proceeding without clear information could lead to a cover-up of unresolved issues,” Mpuuga said.

Deputy Attorney General Jackson Kafuuzi, who was set to table the Assets of Departed Asians (Amendment) Bill, 2024, conceded to the lawmakers’ concerns and requested more time to review the proposal. “I respect my colleagues’ arguments and request time to reconsider the bill. We shall report back to the House,” he said.

The 10th Parliament had previously investigated irregular repossessions and sales of properties managed by the Custodian Board, and its report recommended cancelling certificates of repossession that had been irregularly issued.

Although the Assets of Departed Asians (Amendment) Bill, 2024, was not tabled, Parliament received several other bills aimed at abolishing or merging various government agencies to reduce costs.

These include the Constitution Amendment Bill, 2024, which proposes merging the Uganda Human Rights Commission and the Equal Opportunities Commission, and the Arbitration and Conciliation (Amendment) Bill, 2024.

Other bills presented include the National Tribunal Bill, 2024, the Public Enterprises Reform and Divestiture (Amendment) Bill, 2024, and amendments affecting the management of NAADS, NITA-U, and the Uganda National Roads Authority, among others.

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