NPART wants 2-year extension
Jul 31, 2006
THE Non-Performing Assets Recovery Trust (NPART) administrator, Julius Izimba, has asked Parliament to extend the trust’s life span for two years to enable it recover all assets worth over sh84b.
By Mary Karugaba
THE Non-Performing Assets Recovery Trust (NPART) administrator, Julius Izimba, has asked Parliament to extend the trust’s life span for two years to enable it recover all assets worth over sh84b.
Appearing before the finance committee recently, Izimba said the trust’s five- year term had expired in October last year before all the assets could be recovered.
He said the trust has an outstanding debt portfolio of sh84b of which sh30b is in Uganda Commercial Bank (ucb) and sh54b is in Uganda Development Bank (UDB).
Izimba said the trust has a combined collateral security value of about sh23b.
NPART was established in 1994 to hold and recover on behalf of the Government non-performing assets, which were transferred to it by UCB and UDB.
However, due to a low rate of recovery, there have been two extensions of the trust’s mandate.
He told the committee chaired by William Nsubuga that the delay in extending the life span of the trust had caused delays in recovery of many assets, which are currently in court.
Izimba said they are over 214 UCB cases and 24 UDB cases valued at about sh14b and “court has threatened to take judgment by August if we don’t act.â€
“The absence of a legal mandate is not only adversely affecting the debt recovery operations but may result into adverse legal obligations, crippling the trust and the Government without formal measures to handle the same,†he said.
He said since inception, over sh27b had been remitted to the Consolidated Fund.
THE Non-Performing Assets Recovery Trust (NPART) administrator, Julius Izimba, has asked Parliament to extend the trust’s life span for two years to enable it recover all assets worth over sh84b.
Appearing before the finance committee recently, Izimba said the trust’s five- year term had expired in October last year before all the assets could be recovered.
He said the trust has an outstanding debt portfolio of sh84b of which sh30b is in Uganda Commercial Bank (ucb) and sh54b is in Uganda Development Bank (UDB).
Izimba said the trust has a combined collateral security value of about sh23b.
NPART was established in 1994 to hold and recover on behalf of the Government non-performing assets, which were transferred to it by UCB and UDB.
However, due to a low rate of recovery, there have been two extensions of the trust’s mandate.
He told the committee chaired by William Nsubuga that the delay in extending the life span of the trust had caused delays in recovery of many assets, which are currently in court.
Izimba said they are over 214 UCB cases and 24 UDB cases valued at about sh14b and “court has threatened to take judgment by August if we don’t act.â€
“The absence of a legal mandate is not only adversely affecting the debt recovery operations but may result into adverse legal obligations, crippling the trust and the Government without formal measures to handle the same,†he said.
He said since inception, over sh27b had been remitted to the Consolidated Fund.