NPART to hit sh42b by October

May 10, 2005

BY the expiry of its contract in October, the Non Performing Assets Recovery Trust (NPART) would have collected sh42b over 10 years of its operations, an official has said.

By Kiganda Ssonko

BY the expiry of its contract in October, the Non Performing Assets Recovery Trust (NPART) would have collected sh42b over 10 years of its operations, an official has said.

According to the Trust’s administrator, Julius Izimba, this would be up from the sh40.2b collected by March for the former Uganda Commercial Bank (UCB) and Uganda Development Bank (UDB) debts.

“NPART will cease to exist in October, unless the finance minister advises the legislature to pass a resolution extending its operations. By then, we estimate total collections to have reached sh42b,” Izimba said.

He said of the sh42b, sh29.2b would be for UCB and sh12.5b for UDB with collection costs of sh14.2b.

Responding to what appeared in The New Vision of May 9, that the Trust had become expensive for the Government, Izimba said NPART meets its operations by using 34% of total collections.

“NPART is not funded by the finance ministry. It meets its administrative costs from annual recoveries,” he said, adding, “May be the Members of Parliament mistook the Trust for the Non Performing Assets Recovery Tribunal, which was established by the 1994 NPART Statute.
“The Tribunal is funded from the Consolidated Fund,” he said.

Izimba said NPART had an obligation to collect sh139b, of which sh73.6b is for UDB and sh66b for UCB.

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