Uganda Passes Law to Seize Assets of Convicted Corrupt Officials

The Ugandan Parliament has passed legislation that enables the government to seize property from officials convicted of corruption. The Non-Performing Assets Recovery Trust (Amendment) Bill, 2024 and the Assets of Departed Asians (Amendment) Bill, 2024 aim to dissolve the Non-Performing Assets Recovery Trust (NPART) and the Departed Asians Property Custodian Board, respectively, and integrate their functions into the Ministry of Finance.

However, the Parliamentary Committee on Finance, Planning and Economic Development has emphasized the need for transparency and accountability before proceeding with the dissolution of these entities. The committee pointed out the absence of a comprehensive inventory list of the assets held by the Trust and the Board. As a result, the committee recommended rejecting the repeal of the NPART Act until a full inventory of the Trust's assets is provided to Parliament.

The Minister of Finance requested time to conduct an audit of the assets under the Trust and the Departed Asians Property Custodian Board. As a result, both bills have been withdrawn for a year pending the completion of the audits. The government also withdrew the Tier 4 Microfinance Institutions and Money Lenders (Amendment) Bill, 2024, which sought to rationalize the Uganda Microfinance Regulatory Authority (UMRA), citing structural challenges within the Ministry of Finance.

Why this matters: The passage of these bills represents a significant step in Uganda's fight against corruption. By enabling the government to seize assets from convicted corrupt officials, the legislation aims to deter corruption and ensure that ill-gotten gains are returned to the state. The emphasis on transparency and accountability in the process highlights the importance of maintaining public trust in the government's anti-corruption efforts.

The Speaker of Parliament tasked the Minister of Finance to present regulations standardizing money lenders' charges. "The committee's recommendations to conduct audits before dissolving the Trust and the Board demonstrate a commitment to due process and the rule of law," said a member of the Parliamentary Committee on Finance, Planning and Economic Development. The successful implementation of these asset recovery measures will be closely watched as Uganda continues its efforts to combat corruption and strengthen its institutions.

Key Takeaways

• Uganda passed laws to seize assets from corrupt officials.
• Parliament recommended audits before dissolving asset recovery entities.
• Audits of assets under the Trust and Departed Asians Board ordered.
• Microfinance regulation bill withdrawn due to structural challenges.
• Asset recovery measures will be closely watched to combat corruption.