Government Halts Transaction On Its Land and Other Assets

Ministry of Local Governments (LG), has instructed all the Municipal Town Clerks (MTCs) and Chief Administrative Officers (CAOs) to halt all the ongoing and future transactions on disposing off government land or any other Strategic Assets with immediate effect.

In a letter dated June 5, which the ChimpReports saw, Mr Ben Kumumanya, the ministry Permanent Secretary said the ministry had learnt that a number of LGs have initiated disposal of land and buildings in form of sale, lease or exchange yet this is the mandate of Parliament.

“I wish to inform you that Disposal of land is only approved by Parliament as per Section 34 (6) of the Public Finance Management Act (PFMA) which stipulates that an Accounting Officer shall not pledge or otherwise encumber the land or any other Asset of the Government without the permission of the Parliament,” reads part of the letter.

According to Mr Kumumanya, a number of private investments have been made on government land, sidelining the public investments.

“It has become increasingly clear that public investments have to be made on land belonging to government. “Such investment include but not limited to; Schools, Public Health Facilities, Green Spacers, Cemeteries, Industrial hubs and railway lines among others.”

Citing Section 95 of the Local Government Act, CAP 243, Mr Kumumanya instructed all the MTC and CAOs to halt any transactions aiming at disposing off land or any Strategic Assets of the LG until further notice.

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