Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has suspended its inquiry into the management of 2,515 properties under the Departed Asians Property Custodian Board (DAPCB) after officials failed to account for their whereabouts and revenue potential.
The committee, chaired by Kyadondo East MP Muwada Nkunyingi, halted the probe to allow MPs to conduct an independent physical verification of the properties, following revelations that the board collects rent from only five properties, earning about Shs20 million monthly.
The disclosure raised questions about the fate of thousands of other properties, including whether they are occupied, abandoned or generating rental income that is not reaching government.
DAPCB Executive Secretary George William Bizibu attributed the poor collections to ownership disputes and competing claims over the properties.
He told MPs that preliminary verification had established that about 95 per cent of the properties sampled were encumbered, with some reportedly removed from the land register by District Land Boards before being re-entered by controlling authorities or reclaimed by former owners.
Bizibu said the board had sought clarification from the Ministry of Lands but faced difficulties conducting land searches because of the associated costs. He added that the institution was awaiting implementation of the RUPEX system to improve property verification and management.
However, Nkunyingi questioned why the board had failed to establish physical control over properties whose locations and ownership records were already available.
He also demanded to know who was occupying the properties and collecting rent, particularly amid allegations that influential individuals, including public officials, had taken possession of some buildings.
The committee further questioned the board’s financial accountability, with MPs pointing to a mismatch between its revenue projections and actual collections.
DAPCB budgeted Shs3.58 billion in non-tax revenue, yet its reported rental collections amount to approximately Shs240 million annually.
Elgon North MP Gerald Nangoli demanded explanations for the projections and the institution’s expenditure on goods and services, staff salaries and administrative costs.
Budadiri East MP Julius Nakiyi also questioned why the board’s balance sheet reflected assets worth only about Shs200 million despite its responsibility for thousands of properties.
The board’s accountant, John Byagagwe, told MPs that the institution employs 14 staff members and relies mainly on rental income and commissions from property disposals.
He identified Plot 14 on 3rd Street, which earns Shs2 million, and Plot 2 on Forty Road, which generates Shs3 million, among the income-generating properties, but did not provide a comprehensive breakdown of collections from all five.
The inquiry also exposed gaps in tax compliance, with Byagagwe saying the board had previously lacked its own Uganda Revenue Authority Tax Identification Number and that he found no records of earlier Pay As You Earn remittances when he joined.
MPs also demanded an update on 137 court cases previously highlighted by the Auditor General, including legal fees paid to Victoria Advocates. Bizibu said some cases had been withdrawn while others were settled out of court following advice from the Attorney General, but provided no detailed breakdown.
In suspending the probe, Nkunyingi directed a subcommittee to establish the location and status of the 2,313 properties remaining after excluding 202 reportedly compensated through the British High Commission and the United Nations High Commissioner for Refugees.
The MPs will verify the properties by region and district, establish whether the board can access them and compare their findings with the Auditor General’s observations.
The committee will also seek independent confirmation from the British High Commission and UNHCR regarding the compensation of the 202 properties.
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