Value for money audit of the functionality of land management institutions in Uganda

8/9/2019 Value for money audit of the functionality of land management institutions in Uganda

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The Republic of Uganda

VALUE FOR MONEY AUDIT REPORT ON THE FUNCTIONALITYOF LAND MANAGEMENT INSTITUTIONS IN UGANDA

MARCH 2011


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TABLE OF CONTENTS

PageTABLE OF CONTENTS ……………………………………………………………. iLIST OF TABLES……………….. ...…………….………………………….…….. iiiLIST OF PICTURES……………….. ...…………….………………………….…….. iii

LIST OF ABBREVIATIONS………….…………………………………………… ivEXECUTIVE SUMMARY ………………………………………………………….. v

CHAPTER ONE: INTRODUCTION.......................................................... 11.1 Back ground to the Audit………………………………………………………………….. 11.2 Description of the Audit Area……………………………………………………………. 21.3 Statutory mandate………………………………………………………………………….. 21.4 Vision, Mission, Objectives and Activities……………………………………………. 21.5 Funding………………………………………………………………………………………….. 31.6 Organizational Structure…………………………………………………………………… 41.7 Audit Objectives………………………………………………………………………………. 51.8 Audit Scope…………………………………………………………………………………….. 5

CHAPTER TWO: METHODOLOGY ……………………………………………… 62.1 Sampling………………………………………………………………………………………… 62.2 Data collection methods………………………………………………………………….. 72.3 Data analysis………………………………………………………………………………….. 8

CHAPTER THREE: ROLES AND PROCESS DESCRIPTION………………… 93.1 Roles and responsibilities of key players……………………………………………. 93.2 Process description………………………………………………………………………….. 13

CHAPTER FOUR: FINDINGS …………………………………………………… 214.1 Constitution of the various land management institutions…………………… 21

4.2 Budgeting and funding of the various land management institutions……. 234.3 Staffing of the various land management institutions…………………………. 274.4 Administrative functions at the various land management institutions….. 314.5 Acquisition of land titles and conversion of tenure systems…………………. 43

CHAPTER FIVE: CONCLUSIONS……………………………………………….. 555.1 Constitution of the various land management institutions……………………. 555.2 Budgeting and funding of the various land management institutions……. 555.3 Staffing of the various land management institutions………………………….. 565.4 Administrative functions at the various land management institutions….. 575.5 Acquisition of land titles and conversion of tenure systems…………………. 58

CHAPTER SIX: RECOMMENDATIONS……………………………………….. 596.1 Constitution of the various land management institutions…………………… 596.2 Budgeting and funding of the various land management institutions……. 596.3 Staffing of the various land management institutions…………………………. 606.4 Administrative functions at the various land management institutions….. 616.5 Acquisition of land titles and conversion of tenure systems…………………. 62

GLOSSARY OF KEY TERMS……………………………………………………… 65


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LIST OF APPENDICES…………………………………………………………… 69

Appendix 1: Structure of the MOLHUD…………………………………………………….. 69

Appendix 2: Documents reviewed……………………………………………………………. 70

Appendix 3: Officers interviewed……………………………………………………………… 71

Appendix 4: Showing delays taken to appoint DLBs…………………………………… 72

Appendix 5: Showing inadequate funding to DLOs…………………………………….. 73

Appendix 6: Showing high number of members of ALCs……………………………… 74

Appendix 7: Showing the filled and vacant technical staff in DLOs………………… 75

Appendix 8: Showing expected time of converting customary land to free hold land 76

Appendix 9: Showing expected time to acquire a lease………………………………… 76

Appendix 10: Showing time to convert from lease to free hold land (upcountry) 77

Appendix 11: Showing time to convert from lease hold to free hold land (urban) 77

Appendix 12: Showing expected time to register Mailo land…………………………… 78


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LIST OF TABLES

Table 1: Showing funding to the DLM for FYs 2006/2007-2009/2010……… …... 4

Table 2: Showing average budget performance for DLM for FYs 06/07-09/10 23

Table 3: Showing average budget performance for ULC for FYs 06/07-09/10.. 24

Table 4: Showing staffing gaps in the DLM………………………………………………… 28

Table 5: Showing planned induction of ALC and DLB members……………………. 32

Table 6: Showing un-inducted ALC members……………………………………………… 32

Table 7: Showing un-inducted DLB members……………………………………………… 33

Table 8: Showing planned training of ALC and DLB members……………………… 33

Table 9: Showing un-trained ALC members………………………………………………… 33

Table 10: Showing un-trained DLB members……………………………………………… 34

Table 11: Showing un-printed copies of sensitization booklets……………………… 35

Table 12: Showing un-conducted monitoring visits……………………………………… 36

Table 13: Showing accumulated domestic arrears of unpaid property rates ….. 40

Table 14: Showing improvement in collection of Non Tax Revenue……………….. 42

Table 15: Showing delays in processing of conversion from customary to free hold 44

Table 16: Showing delays in processing of lease titles…………………………………… 45

Table 17: Showing delays in processing of freehold titles on conversion (Upcountry) 46

Table 18: Showing delays in processing of freehold titles on conversion (Urban) 47

Table 19: Showing delays in processing of Mailo titles…………………………………… 48

LIST OF PICTURES

Picture 1: White pages lying on the floor in the leasehold registry in Kampala….. 53

Picture 2: White pages lying on the floor in the leasehold registry in Kampala….. 53


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LIST OF ABBREVIATIONS

AG Auditor General

ALC Area Land Committee

CAP Chapter

CAO Chief Administrative Officer

CEO Chief Executive Officer

DLB District Land Board

DLT District Land Tribunal

FY Financial Year

GOU Government of Uganda

IS Instruction to Survey

JRJ Job Record Jacket

LC Local Council

LG Local Government

LSRCU Land Sector Reform Coordination Unit

MOFPED Ministry of Finance, Planning and Economic Development

MOLHUD Ministry of Lands, Housing and Urban Development

MOLG Ministry of Local Government

MOPS Ministry of Public Service

OAG Office of the Auditor General

PS Permanent Secretary

RDC Resident District Commissioner

RTA Registration of Titles Act

ULC Uganda Land Commission

Ug Shs Uganda Shillings


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EXECUTIVE SUMMARY

INTRODUCTION

This Value for Money audit on the performance of land management institutions was conducted

in accordance with Article 163 (3) of the Constitution of the Republic of Uganda as amended.

This mandate is further amplified by Section 21 (1) of the National Audit Act of 2008 which

requires the Office of the Auditor General to carry out Value for Money audits for purposes of

establishing economy, efficiency and effectiveness in the operations of any Government

ministry, department or agency.

Motivation

Land in Uganda belongs to the citizens of Uganda and is vested in them. The Constitution of the

Republic of Uganda1 recognizes various land tenure systems namely; Customary, Freehold,

Mailo and Lease hold.

The administration of the various land tenure systems is vested in the Ministry of Lands,

Housing and Urban Development, Uganda Land Commission, District Land Boards, District Land

Offices and Area Land Committees.

However, despite the existence of these Institutions, the public appears to be slowly losing

confidence in the land administration system. There has been public outcry on delays in

processing of land titles, crowded land offices, payment of bribes and the increase in landwrangles and evictions and encroachment on Government land. The land administration

institutions attribute these challenges to the lack of a national land policy to govern the

management of Government/public and private land, understaffing and inadequate funding.

It is against this background that the Office of the Auditor General instituted a Value for Money

audit to assess the planning, budgeting, funding, staffing and functionalities of various land

management institutions with a view of identifying the challenges, if any, and provide possible

recommendations to improve on service delivery.

The audit was conducted in accordance with the International Organization of Supreme Audit

Institutions (INTOSAI) auditing standards and guidelines as set out in the Office of the Auditor

1 Section 237 (3)


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General VFM audit manual. Those standards require that the audit should be planned in a

manner which ensures that an audit of high quality is carried out in an economic, efficient and

effective way and in a timely manner. The audit focused on four (4) Financial Years (FYs) from

2006/2007 up to 2009/2010.

Below are the audit findings on the challenges of land management institutions identified in the

twenty three (23) sampled districts which have been classified under their constitution, funding,

staffing and administrative functions.

CONSTITUTION OF DLBs AND ALCs

It was noted that DLBs had been constituted with the exception of Mukono and Moroto districts.

However, there were delays ranging between 8-18 months to constitute new Boards after the

expiry of the old Boards due to failure by districts to adhere to appointing guidelines. This has

led to delays in the processing of land transactions and clearance of backlogs.

It was also observed that although ALCs had been constituted, the members were not given

formal appointment letters by District Councils because of fear to commit district meager

resources. This has affected their morale to work leaving members vulnerable to being

compromised by the clients; and the decisions of the Committee members without appointment

letters if challenged in Courts of law, may be difficult to defend.

BUDGETING AND FUNDING

It was noted that not all the budgeted funds were released by the Ministry of Finance, Planning

and Economic Development (MOFPED) to the Ministry and ULC.

The Ministry, ULC and DLO’s on average received only 79.5%, 87% and 80% respectively of

their budgeted amount which affected the implementation of their annual planned activities.

It was also noted that DLBs were not preparing annual and quarterly work plans as required by

the existing guidelines. Without work plans, DLBs lacked a guiding tool to effectively implement

their activities.

It was further established that District Councils (DCs) did not determine the remunerations to

be paid to the members of ALCs, and neither did Sub Counties/Divisions indicate preparedness


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to assist in the funding of the Committee activities. The absence of facilitation has left members

vulnerable to being compromised by the clients.

STAFFING

Directorate of Land Management:

It was noted that the DLM had not filled all the positions in the approved structure and this had

created work related pressure on the existing staff which as a result delays the processing of

land transactions.

Uganda Land Commission

The Commission did not have an approved structure from the MOPS and this has delayed the

appointment of requisite staff like Rating Officers, Valuers and Land Officers; which has

negatively impacted on the operations of the Commission.

District Land Offices

Audit noted that 87% of the DLOs in our sample of the twenty three (23) districts visited, had

more than one position of technical officers vacant. The districts were therefore seeking

services of staff from other neighboring districts, which slowed down the processing of land

transactions leading to delays.

ADMINISTRATIVE FUNCTIONS

Directorate of Land Management

Development of the National Land Policy (NLP)

It was noted that although several drafts of the NLP had been prepared, there was no final

NLP. Without a NLP in place, the management of land by various land management institutions

and the processing of land transactions remains unguided and uncoordinated, leading to various

challenges currently affecting the land sector.


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Induction and Training of ALC and DLB Members

Not all the planned 2462 ALC and DLB members were inducted. Similarly, not all the planned

2,232 ALC and DLB members were trained. Members who are not inducted and trained are

prone to making mistakes while executing their work.

Sensitization of the Public

It was noted that 65,400 copies of sensitization booklets were not printed. Records availed for

verification to show how the printed 14,600 copies of the booklets were distributed to the Public

did not indicate the quantity of materials distributed. Therefore, the public remained un-

sensitized about land matters.

Supervision, Monitoring and Evaluation

53 visits out of the planned 110 monitoring visits were not conducted. Without monitoring, the

Ministry could not get sufficient information about what was happening in the lower land

management institutions.

Uganda Land Commission (ULC)

Establishment of the Land Fund

Although Section 41 (1 & 2) of the Land Act CAP 227 requires the establishment of the Land

Fund to be managed by ULC, the Fund has never been established; and this has affected the

execution of the Commission’ s obligations as specified by the Land Act.

Maintenance of the Government Land Register

It was noted that the Commission was not regularly updating the Government Land Register;

and as such, the Commission could not give a clear account/position of Government land.

Land Inventory Exercises

There was no evidence availed to show that the Commission carried out the planned land

inventory exercises. Without land inventory exercises, the Commission cannot regularly update

the Government Land Register.


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Processing of Government Land Titles

It was noted that the Commission was not processing the Government Land Titles as planned;

yet Government cannot legally claim ownership of its land without titles. This may lead to loss

of Government land to unscrupulous persons.

Payment of Property Rates

It was noted that the Commission was not paying property rates to qualifying Urban Councils

on schedule, leading to the accumulation of domestic arrears. Nonpayment of property rates by

ULC could lead to litigation.

Collection of Non Tax Revenue (NTR)

Audit noted a progressive improvement in the collection of NTR by the Commission; which

could further be improved upon if the Commission streamlines the billing system.

ACQUISTION OF LAND TITLES AND CONVERSION OF LAND TENURE SYSTEMS

It was noted that no certificates of customary ownership had ever been issued or acquired by

the customary land owners. Failure to acquire customary certificates affects the identification of

bonafide owners which may increase incidences of land ownership wrangles.

Audit also noted that there are delays in the process of land titling and conversion from one

tenure system to the other. The delays have created public dissatisfaction, which has

encouraged applicants to resort to use of middlemen who ask for exorbitant payments and

sometimes end up cheating the applicants.

RECOMMENDATIONS

Constitution of DLBs and ALCs

District Land Boards

The District Executive Committees, District Councils and the Ministry of Lands should plan,coordinate and expedite the appointment process of DLBs.

The District Executive Committees and District Councils should adhere to guidelines that

govern the appointment of DLB members.


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Area Land Committees

District Councils, in collaboration with Sub County and Division Councils, should issue

appointment letters clearly specifying the terms and conditions of service for the members

of the Area Land Committees upon their appointment.

BUDGETING AND FUNDING

Directorate of Land Management, Uganda Land Committee and District Land Offices

The Ministry of Finance, Planning and Economic Development should endeavour to release

funds to Government Ministries, Departments and District Officers as appropriated by

Parliament.

Districts should improve their local revenue mobilization efforts with a view to increase their

local revenue collections which will be used to fund district land offices.

Districts in conjunction with the Ministry should build capacity of the Secretaries to the

Boards to enable them obtain the requisite skills in preparation of work plans and quarterly

reports to enhance accountability.

STAFFING

The process of restructuring the Ministry of Lands and the Uganda Land Commission should

be expedited by the Ministry of Public Service to enable the recruitment of the requisite

staff.

District Service Commissions should recruit technical staff in the District land offices to

enable efficient delivery of technical services.

ADMINISTRATIVE FUNCTIONS

Directorate of Land Management

Development of the National Land Policy (NLP)

The Ministry should expeditiously complete the development of the National Land Policy to

ensure sustainable and optimal land use and management in the country.


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Induction and Training of ALC and DLB Members

The Ministry should build its training capacity to ensure that ALC and DLB members are

inducted and trained.

The District Executive Committees and District Councils should ensure timely appointment of

DLB members to enable them to be trained by the Ministry.

The Ministry should prioritize the implementation of sensitization activities, as planned, to

increase public awareness of land matters.

Supervision, Monitoring and Evaluation

The Ministry should build its capacity to supervise, monitor and evaluate the activities of

various land management institutions.

Uganda Land Commission

Establishment of the Land Fund

The Commission and the Ministry should expedite the process of the establishment of the

Land Fund as required by the Provisions of the Law, which should be used to streamline the

management of land in the country.

Maintenance of the Government Land Register

The process of restructuring the Commission should be expedited by the Ministry of Public

Service to enable recruitment of the Land Registrars.

Land Inventory Exercise

The Commission should conduct land inventory exercises as planned and update the

Government Land Register.

Payment of Property Rates

The Commission should establish a data base of qualifying Urban Councils to enable it to

accurately plan for the payment of their property rates.

The Commission should establish and regularly update a data base of lease holders to

enable it to improve the collection of Non Tax Revenue from ground rent.


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ACQUISTION OF LAND TITLES AND CONVERSION OF LAND TENURE SYSTEMS

The Ministry should also expedite the completion of the computerization of the land

registries as this will solve challenges in filing and retrieval of files, missing documents and

general loss of documents.


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CHAPTER ONE

INTRODUCTION

1.1 Back ground to the Audit

This Value for Money audit on Land Management Institutions in Uganda has been conducted in

accordance with Article 163 (3) of the Constitution of the Republic of Uganda. This mandate is

further amplified by Section 21 (1) of the National Audit Act of 2008 which requires the Auditor

General to carry out Value for Money audits for purposes of establishing economy, efficiency

and effectiveness in the operations of any Ministry, Department or Agency.

Motivation

Land in Uganda belongs to the citizens of Uganda and is vested in them. The Constitution ofthe Republic of Uganda2 recognizes various land tenure systems namely; Customary, Freehold,

Mailo and Lease hold.

The administration of the various land tenure systems is vested in the Ministry of Lands,

Housing and Urban Development, Uganda Land Commission, District Land Boards, District Land

Offices and Area Land Committees.

However, despite the existence of these Institutions, the public appears to be slowly losing

confidence in the land administration system. There has been public outcry on delays in

processing of land titles, crowded land offices, payment of bribes and the increase in land

wrangles and evictions and encroachment on Government land. The land administration

institutions attribute these challenges to the lack of a national land policy to govern the

management of Government/public and private land, understaffing and inadequate funding.

It is against this background that the Office of the Auditor General decided to conduct a Value

for Money audit to ascertain the challenges facing land management institutions in Uganda and

to analyze their underlying causes and make recommendations to address them.

2 Section 237 (3)


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1.2 Description of the Audit Area

The audit was conducted in the Ministry of Lands, Housing and Urban Development (MOLHUD)

particularly in the Directorate of Land Management (DLM) which is responsible for the

management and administration of land in the country. To execute its roles, the DLM is divided

into three departments, namely: the Department of Land Administration, Department of

Surveys and Mapping and the Department of Land Registration which supplement each other

and also work closely with other independent bodies like, the Uganda Land Commission (ULC),

the District Land Boards (DLB), the District Land Offices, the Land Tribunals, the Area Land

Committees, the Divisions and Sub Counties in the management of land. The DLM is also

supported by the Land Sector Reform Coordination Unit (LSRCU), under which most reforms are

coordinated.

Though the enactment of the Land Act CAP 227 decentralized land administration functions

from the MOLHUD and the ULC to the DLBs and ALCs,3 the titling of land in Uganda is generally

a centralized function as land titles are processed and issued at MOLHUD headquarters in

Kampala save for districts with Mailo land.

1.3 Statutory Mandate of the DLM

The DLM derives its mandate to manage and administer land in Uganda from that of the

MOLHUD which is: “to facilitate and promote rational and sustainable use, effective

management and orderly development of land and safe, planned and improved housing

development for meaningful socio-economic development”.

1.4 Vision, Mission, Objectives and Activities of the DLM

Vision

The DLM derives its vision from that of the MOLHUD which is: “Sustainable land use, land

tenure security, affordable, decent housing and organized urban development”.

Mission

The DLM derives its mission from that of the MOLHUD which is:

“Creating an enabling environment to use land resources sustain ably for better livingconditions in Uganda”.

Objectives of the DLM

The objectives of DLM are:

3 Section 2.1 of the Guidelines on the administration of Land under the Land Act, CAP 227 of July 2005


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To formulate national policies, strategies and programs on land, housing and urban

development.

To provide policy guidance to land holding authorities for sustainable, orderly development

and effective management of land, housing and urban sectors.

To initiate and review legislation on land, housing and urban development.

To set national standards for sustainable use and development of land and improved

housing.

To enforce compliance to laws, policies, regulations and standards for effective

management and sustainable development of land, housing and urban centers.

To monitor and coordinate national land, housing and urban development initiatives and

policies as they apply to Local Governments (LG’s).

To provide support supervision and technical back-stopping to LG’s on matters regardinglands, housing and urban development.

To maintain territorial boundary, making and updating maps.

Activities carried out in the DLM

In order to achieve the above objectives, there are several activities carried out in the DLM.

These include: searches of the register, verification of survey requests, certification of titles and

other instruments, mutations, registration of Court Orders and Summons, mortgages, leases,

issuing special certificates of titles, caveats, cancellation of certificates of titles, propertyvaluation, surveys and mapping, setting standards, capacity building, performance monitoring,

policy development and physical planning.

1.5 Funding of the DLM

The DLM is funded by the Government of Uganda (GOU) from releases to the MOLHUD and

development partners. An amount of Ug Shs 5,097,500,113 was received by the DLM during

the period of audit 2006/2007 – 2009/2010. Some activities in the DLM were also funded under

a project called the Land Tenure Reform Project (LTRP) as shown in Table 1 .


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1.7 Audit objectives

The audit was conducted to establish the challenges faced by various land management

institutions while performing their functions and provide possible recommendations that will

address them.

Specifically the audit was intended to establish whether the Directorate of Land Management

(DLM) in the MOLHUD, Uganda Land Commission (ULC), District Land Offices (DLO), District

Land Boards (DLB) and Sub County Land Committees (SLC) and Division Land Committees

(DLC) were properly constituted, funded and functioning.

1.8 Audit Scope

The audit focused on land management institutions in the country and was conducted in the

DLM in the MOLHUD, ULC and twenty three (23) Districts of Arua, Gulu, Jinja, Kabale, Kabarole,

Lira, Luwero, Masaka, Mbale, Mbarara, Masindi, Mityana, Mukono, Moroto, Rukungiri, Soroti,

Tororo, Kampala, Wakiso, Nebbi, Bundibugyo, Bushenyi, Kalangala and nine (9) Municipalities

of; Arua, Gulu, Jinja, Kabale, Fort portal, Lira, Masaka, Mbale and Mbarara. The audit focused

on four (4) Financial Years (FYs) from 2006/2007 up to 2009/2010.


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CHAPTER TWO

METHODOLOGY

The audit was conducted in accordance with the International Organization of Supreme Audit

Institutions (INTOSAI) auditing standards and guidelines as set out in the Office of the Auditor

General VFM audit manual.

Those standards require that the audit should be planned in a manner which ensures that an

audit of high quality is carried out in an economic, efficient and effective way and in a timely

manner.

2.1 Sampling

The audit covered the period 2006/2007 – 2009/2010 and was conducted through sample

check of various land related records at the DLM in the MOLHUD head quarters, Uganda Land

Commission, twenty three (23) Districts and nine (9) Municipalities which were selected as

explained below.

At the MOLHUD head quarters; the mailo, free hold/lease hold and inspectorate registries were

all selected.

There are 17 regional land offices located in different parts of the country which handle land

matters. These are: Arua, Gulu, Jinja, Kabale, Kabarole, Lira, Luwero, Masaka, Mbale, Mbarara,

Masindi, Mityana, Mukono, Moroto, Rukungiri, Soroti and Tororo which were all selected for the

audit since they are regional centers that are also providing various land services to other

neighboring districts within the sub regions.

Among the 17 regional districts, 9 municipalities were selected for the audit on the basis of

PPS4. Municipalities were arranged according to the volume of land transactions handled per

annum from 2006 to 2010 and the first nine (9) municipalities with higher transactions were

selected. These are: Arua, Gulu, Jinja, Kabale, Fort portal, Lira, Masaka, Mbale and Mbarara.

4 Probability Proportion to Size: This sampling method assigns higher inclusion probability for units (municipalities) with higher volumes oftransactions. In this case, the more transactions, the higher the selection chances.


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6 other districts were selected on the basis of SRS5. These are Kampala, Wakiso, Nebbi,

Bundibugyo, Bushenyi and Kalangala.

Within each sampled District, out of the available Sub Counties, two (2) were randomly selected

for the audit, and the Sub County Chief (Recorder) and some members of the Area Land

Committee (ALC) were interviewed.

Within each Municipality, out of the available Divisions, one (1) was randomly selected for the

audit and some members of the Area Land Committee (ALC) were interviewed.

2.2 Data Collection Methods

Various methods were used for collecting and analyzing data from the field and these included;

document review, interviews and physical inspections.

Document Review

Documents both at the DLM in MOLHUD, ULC and Districts/Municipalities visited were reviewed

so as to obtain and enhance our understanding of the audit entities and to obtain collaborative

information to be compared with evidence got from interviews and physical inspections. See

documents reviewed in Appendix 2.

Interviews

Interviews were conducted with officials at the DLM in MOLHUD, ULC and in the

Districts/Municipalities of Arua, Gulu, Jinja, Kabale, Kabarole, Lira, Luwero, Masaka, Mbale,

Mbarara, Masindi, Mityana, Mukono, Moroto, Rukungiri, Soroti, Tororo, Wakiso, Kampala, Nebbi

and Kalangala. These interviews were intended to obtain an understanding of the composition,

funding, functions and challenges facing the land administration institutions in the country. See

Officers interviewed in Appendix 3.

Physical Inspections

Physical inspections of the existing land registries (also called strong rooms) were conducted to

find out how land files are kept and retrieved. Through inspections, the team was also able to

see firsthand the number of clients waiting to be served in the different district land offices, the

5 Simple Random Sampling: This scientific sampling method ensures equal probability of selection of every unit in the population. In thiscase, the chances of selecting any given district were equal.


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available office space, tools and facilities at the disposal of the officers and staff at the different

land management institutions.

2.3 Data Analysis

Staff establishment structures of various land management institutions were studied and

compared with the existing staff, members and commissioners of ULC to identify gaps if any.

Budgets and audited financial statements were scrutinized to establish whether the budgeted

amounts of various land management institutions were adequately provided. Work plans and

performance reports of the various land management institutions were studied to establish

whether the planned activities were carried out.

Also land application files were examined to establish whether the procedures and processes of

administering land under the different land tenure systems were being followed.


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CHAPTER THREE

ROLES AND PROCESS DESCRIPTION

3.1 Roles and Responsibilities of Key Players

There are several key players in the administration and management of land both at the

National (Ministry) and District levels as explained below.

AT THE NATIONAL LEVEL

3.1.1 Directorate of Land Management (DLM)

The DLM’s main roles in the administration of land are: setting and safeguarding standards for

land administration; facilitating land transactions, taking into consideration the existing

Government laws, policies and procedures; providing technical support and supervision and

training of lower land management institutions; coordinating the collection, custody and

updating of land information on delineated6 land in the country; assessment of compensation

for land and properties acquired by Government; valuation of rental properties to be occupied

by Government institutions and agencies, determination of premium and ground rent; valuation

of leases; and assisting districts to work out meaningful compensation rates.

In addition, DLM vets appointed DLB members and submits them for Ministerial approval,

inducting and training of ALC and DLB members, District Land Officers; and monitoring the

work of DLBs, DLOs and ALCs.

The DLM also provides technical support to the DLOs in the processing of upcountry leaseholds

and freeholds; processing and granting of consent to transfer properties, checking for

compliance with the land laws, regulations and policies; plus the reconstruction, rehabilitation

and computerization of land records and cadastral index maps. The DLM is responsible for

surveying and mapping activities in the country, demarcation and maintenance of international

and internal boundaries and establishing, updating and maintaining of the national geodetic

networks7 to control surveys done in the country. DLM also provides and maintains

infrastructure for standardization of survey equipment and gives support in servicing and

maintenance of surveying and mapping equipment used in the country.

6 Delineated land: this is un-surveyed land.7 Geodetic networks: Basis of mapping frame work.


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3.1.2 Uganda Land Commission (ULC)

The ULC is an independent body that works closely with MOLHUD in the administration and

management of land. Its roles are: holding and managing land in Uganda which is vested in or

acquired by the Government in accordance with the Constitution of the Republic of Uganda;

and, where applicable, holds and manages any land acquired by the Government abroad except

that the Commission may delegate the management of such land to Uganda’s missions abroad;

the Commission also procures certificates of title for any land vested in or acquired by the

Government. Further, the Commission is required to pay property rates to all qualifying Urban

Councils and to collect Non Tax Revenue (NTR) from Government properties (land) which are

rented out.

AT THE DISTRICT LEVEL

3.1.3 District Land Boards (DLB)

Sections 56, 57 and 58 of the Land Act CAP 227 requires the establishment of DLBs with a

minimum of five (5) members who hold office for a period of five (5) years and may be eligible

for reappointment for a further one term. Paragraph 3.1 of the guidelines on the administration

of land of 2005, requires members of the DLB to be appointed by the District Council (DC) on

the recommendation of the District Executive Committee (DEC) and approved by the Ministerfor Lands, and is responsible for the following functions8: holding and allocating land in the

district which is not owned by any person or authority; facilitating the registration and transfer

of interests in land; taking over the role and exercising the powers of the lessor in the case of

leases that were granted by former controlling authority (ULC); causing surveys, plans, maps,

drawings and estimates to be made by or through its officers or agents.

The Board compiles and maintains a list of rates of compensation payable in respect of crops,

buildings of a permanent nature and any other thing that may be prescribed by the laws and

reviews it every year.

The minutes, seal and other correspondences of the Board are kept by the Secretary to the

Board who is a public officer appointed by the District Service Commission (DSC), with

8 Section 59 (1) of the Land Act Cap 227 as amended


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knowledge and experience in matters relating to land. The Board is required to prepare

quarterly reports and its activities are financed from the Consolidated Fund.

3.1.4 District Land Offices (DLO)

Section 59 (6) of the Land (Amendment) Act of 2010 requires the establishment of DLO

comprising the offices of the District Physical Planner, the District Land Officer, the District

Valuer, the District Surveyor, the District Registrar of Titles and the District Cartographer, which

provides technical services to the DLB through its own staff or arranges for external consultants

to facilitate the Board in the performance of its functions.

3.1.5 Area Land Committees (ALC)

Section 64 (1) and (2) of the Land (Amendment) Act of 2004 requires the appointment of a

Land Committee at Sub County or Divisional level consisting of a Chairperson and four (4)

other members appointed by the District Council (DC) on the advice of the Sub County orDivisional Council.

The ALC assists the DLB in an advisory capacity on matters relating to land including

ascertaining rights in land boundaries and disputes, and performs any other function conferred

on it by the law. The records and instruments of the ALCs are kept by the Chairperson, and the

Committees may regulate their own procedures.

Committee members are paid such remuneration as may be determined by the DC on the

recommendation of the DEC and the Committee expenses are charged on the district

administration funds (Section 66 of the Land Act CAP 227). However, the law requires that,

before appointing any given Committee, the DC considers whether the Sub County or Division

Council has indicated preparedness to assist in the funding of the Committee and the state of

the finances of the District.9

3.1.6 District Land Tribunal (DLT)

Section 74 (1) and (2) of the Land (Amendment) Act of 2004 establishes the Office of District

Land Tribunal (DLT) consisting of a Chairperson and two (2) other members who shall be

persons with knowledge and experience in land matters, appointed by the Chief Justice (CJ) on

9 Section 64 (6) © & (e) of the Land (amendment) Act Cap 227


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the advice of the Judicial Service Commission (JSC). The Chairperson shall be a person qualified

to be a Magistrate Grade 1.

The jurisdiction of the DLT includes: determining disputes relating to the grant, lease,

repossession, transfer or acquisition of land by individuals, the Commission or other authority

with responsibility relating to land, determining any dispute relating to the amount of

compensation to be paid for land acquired, making consequential orders relating to the

cancellation of entries on certificates of titles or cancellation of titles and determining any other

disputes relating to land.

The records, seal and correspondences of the DLT are kept by the Secretary who is a public

officer qualified or knowledgeable in land matters.

3.1.7 Office of the Recorder

Section 68 of the Land Act CAP 227 establishes the Office of the Recorder at each Sub County,

and for each Division, in an urban area. The Recorder shall be responsible for issuing and

registering dealings on certificates of customary ownership and certificates of occupancy.

The Recorder shall establish, keep and maintain the following: an abstract book, a PIN

allocation book, a register of certificates of customary ownership, a register of certificates of

occupancy and a parcel file (PF), as per Section 41 of the Land Regulations, 2004.

3.1.8 Office of the Mediator

Section 89 (1) of the Land Act CAP 227 requires the establishment of the Mediator who is

appointed by the Land Tribunal and the appointment shall be on adhoc basis. The Mediator

shall be a person of high moral character and proven integrity, knowledge, work, standing or

reputation in society and who is likely to bring parties in disagreement or dispute to reach a

mutually satisfactory agreement and shall be paid such allowances as may be prescribed.


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3.2 PROCESS DESCRIPTION

There are various processes or activities involved in land management. These are land

application, physical planning, surveying and valuation.

3.2.1 Application

Land applications will vary depending on the land tenure system.

Application for Customary Certificates

Applications for customary certificates are sent to the DLB through the ALC using Land Form 1

and on payment of the prescribed fee to the Sub county or Division council. Upon receipt of the

application, the ALC using Land Form 9 gives a date of notice for hearing the application of not

less than two (2) weeks and not more than three (3) months to carry out land identification,

demarcation and making a sketch of the land in question using Land Form 23. The committee

produces 3 copies of the sketch map in respect of the land; one for the Board, and the

applicant and the committee retains one. The committee gives recommendations about the

application to the DLB, copied to the applicant and any other people who could have submitted

claims.

On receipt of the file from the ALC, within three (3) weeks the DLB considers the report and

recommendations and either approves the certificate of customary ownership or not, with

instructions to the recorder (also called the Sub County Chief) to issue a customary certificate oftitle to the applicant in respect of the land in question on the terms and conditions given by the

Board.

Where the Board rejects the application, the reasons for such decision must be clearly stated

and communicated within two (2) weeks to the applicant and copied to the ALC. Any party

aggrieved by the decision of the Board, may appeal to the District Land Tribunal (DLT), which

may confirm, reverse, vary or modify the decision. However, the existing regulations do not

specify the time frame within which the appeal should be made.


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Application for Freehold

Applications for freehold certificates of titles are sent to the DLB through the ALC using Land

Form 4 and on payment of the prescribed fee to the Sub County or Division Council. Upon

receipt of the application, the ALC using Land Form 10 gives a date of notice for hearing the

application of not less than two (2) weeks and not more than three (3) months to carry out

land identification, demarcation and making a sketch of the land in question using Land Form

23 and gives recommendations of the application to the Board.

On receipt of the file from the ALC, within three (3) weeks the DLB considers the report and

recommendations and either gives the freehold offer with instructions to the District Staff

Surveyor (DSS) to coordinate the survey of the land in question or rejects the application,

stating the reasons. Any party aggrieved by the decision of the Board, may appeal to the DLT,

which may confirm, reverse, vary or modify the decision and make such other orders as it is

empowered to do under Section 13 (7) of the Land Act CAP 227. However, the existing

regulations do not specify the time frame within which the appeal should be made.

After the survey, which on minimum takes three (3) weeks, a Job Record Jacket (JRJ) is given

to the DSS for checking and approval before the file is forwarded to the District Cartographer

for plotting on the district cadastral sheet and making of the blue prints, which takes on

average two (2) weeks and then submitted to Commissioner Surveys and Mapping (C/S&M) for

verification and deed printing that takes two (2) weeks.

When the file is received back, the district land officer writes to the Commissioner Land

Administration (C/LA) seeking consent or approval on whether the laid down land registration

procedures have been followed and if there are fees to be paid before the file is forwarded to

the Commissioner Land Registration (C/LR) for titling. This process takes on average four (4)

weeks.

Application for Conversion from Customary Tenure to Freehold Tenure

Any person who wants to convert customary land to free hold applies to the DLB through the

ALC using Land Form 4. On receipt of the application, the ALC arranges to inspect the land. It is

at this point that neighbors and other stakeholders are also interviewed about the land in

question. The ALC makes recommendations to the DLB based on the field findings.


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The DLB takes on average two (2) weeks to pronounce itself on the application. The DLB may

either disapprove the application in question by giving reasons for such decision or approve the

application (conversion) but normally with certain conditions attached. Where the DLB accepts

the application, it sends a copy to the C/LR for issuance of certificate of title. Any party

aggrieved by the decision of the DLB, may appeal to the DLT, which may confirm, reverse, vary

or modify the decision and make such other orders as it is empowered to do so under Section 7

(6) of the Land Act Cap 227. However, the existing regulations do not specify the time frame

within which the appeal should be made.

Application for Leasehold (where the land is owned by DLB)

Any person who wants to acquire a lease applies to the DLB through the ALC using Land Form

8. On receiving the application, the ALC fixes a date of hearing the application of not less than

21 days to carry out parcel identification, demarcation and making a sketch of the land in

question and gives recommendations on the application to the DLB.

On receipt of the application from the ALC, the DLB advertises the application for at least 10

working days in a newspaper of wide circulation to draw the attention of interested persons and

invite comments about the land in question before DLB considers and makes a decision on the

application.

Using Land Form 18, the DLB gives the leasehold offer, with a request to the District Staff

Surveyor (DSS) to coordinate the survey of the land in question or the board may reject the

application but giving the reasons. Any party aggrieved by the decision of the DLB, may appeal

to the DLT, which may confirm, reverse, vary or modify the decision. However, the existing

regulations do not specify the time frame within which the appeal should be made.

After the survey which is expected to take 20 working days, a Job Record Jacket (JRJ) is given

to the DSS for checking and approval before the file is forwarded to the District Cartographer in

the drawing office for plotting on the district cadastral sheet and making of the blue prints,

which activity takes 10 working days, and then, the file is submitted to C/S&M in Entebbe for

verification and deed printing, which takes 10 working days.


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time frame for this and ULC will only wait for whoever appeals to Courts of law to be

summoned.

The Secretary of the Commission will write to the C/LA seeking necessary checks, approval and

consent, which will take 10 working days. Lease agreements are prepared by the Commission

and signed with the applicant after payment of the required fees. The file is then forwarded to

the C/LR for titling, which activity takes 10 working days.

Application for Conversion from Leasehold to Freehold Tenure

Having been given a lease as explained in any of the two (2) ways above, and the initial lease

period expiring i.e. the first 5 years, one is free on application to change from leasehold to

freehold provided he/she fulfills the requirements. In brief, the process of converting from

leasehold to freehold is regulated by Section 28 of the Land Act CAP 227, and is explained as

below:

The application is made by the interested party in triplicate to the ULC or DLB using Land Form

5; and the ULC or DLB holds a hearing into the application to determine if it satisfies the given

conditions such as: the applicant must be a citizen of Uganda, lease must be in respect of

former public land and that the terms and conditions of the initial lease must have been

followed, lease must have existed before coming into force of the 1998 Land Act and there

must not be any customary tenants at the time lease was granted or if there were, then

adequate compensation must have been given. The applicant is required to pay Shs 100,000 for

urban land and Shs 40,000 for rural land as per the Second schedule to the Land regulations of

2004, if the conversion is limited to one hundred (100) hectares. Where a lease of land

exceeding 100 hectares is to be converted into freehold, the owner shall pay the market value

as determined by the Chief Government Valuer (CGV) and that, the lease shall only beconverted if the ULC or DLB has verified it and is satisfied that it is desirable in the public

interest. This activity on average takes 8 weeks.

If the land to be converted is in excess of 100 hectares, the secretary of the Commission or DLB

gives a public notice using Land Form 16 and advertises the application for at least 3 weeks in a

newspaper of wide coverage to draw attention of the concerned people and invites comments


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about the land in question before a decision is made on the application but taking into account

the comments or objections raised, the proposed use of the land, existing market price,

planning concerns and environmental issues.

The Secretary of the Commission or the DLB writes to the C/S&M requesting for confirmation ofwhether the land in question is still intact as shown on the deed plans and the initial title that

was issued, which activity takes 3 weeks for the response to be received.

A freehold offer will be given using Land Form 19 (by DLB) for the land in question or rejected

but stating the reasons. The offer is given on the assurance that the old deed prints are

confirmed to be true or new deed prints made since no survey is done, unless when there is a

fundamental change in the gazzetting of the planning area. However, any party aggrieved bythe decision, may appeal to the Courts of law, which may confirm, reverse, vary or modify the

decision. There is no specific time frame for this process and ULC or DLB will only wait for

whoever has appealed to Courts of law to be summoned.

When the file is received back, the Secretary of the Commission or the DLB writes to the C/LA

seeking necessary approval and consent on whether the laid down land registration procedures

have been followed, and if so, to forward the file to the C/LR for titling. This takes 4 weeks tobe completed.

Application for Mailo Land

This is also called native freehold in Ankole and Kigezi regions. There are various transactions

or dealings that can be done on private mailo land and these are; transfers, leases, mortgages,

making searches and putting encumbrances (e.g. caveats). The registration of interests in

private mailo land is governed by the Registration of Titles Act, Cap 230 and there are two

methods of handling the applications:

Where no dealings have been registered on the land in question; If no dealings have

been registered that may affect transactions on this particular parcel of land say caveats or

mortgages, on receipt of a duly completed mutation or transfer and consent form, the registrar


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of titles issues request to survey to the DSS, who in turn gives instruction to survey to the

private surveyor. Upon receiving the JRJ, the DSS, after approval, transfers the file to the

drawing office for making of blue prints, which are used by the registrar of titles to prepare the

title. The process on average takes 30 days.

Where there have been dealings registered on the land in question; If there are

dealings that have been registered affecting transactions on this particular parcel of land say

caveats or mortgages, on receipt of a duly completed mutation or transfer and consent form,

the registrar of titles will check the status of the encumbrance before issuing request to survey

to the DSS, who in turn gives instruction to survey to the private surveyor. Upon receiving the

JRJ, the DSS after approval transfers the file to the drawing office for making of blue prints,

which are used by the registrar of titles to prepare the title. The process on average takes 30

days.

3.2.2 Physical Planning

Physical Planning (PP) is the process of systematic planning/organizing the land by the

authorities to enable development. PP begins with problem identification followed by

sensitization and awareness campaigns and then reconnaissance exercise which is done to

identify suitable areas for planning, guided by parameters like geographical boundaries and

infrastructures already in existence.

Land use types are proposed to the community through a report, which is submitted to the

Office of Town Clerk (TC) and Country Planning Board (CPB) to defend the proposals. If

approved, implementation from the LG is sought and the District Staff Surveyor (DSS) can now

set out plots according to the designed plan. After surveys, the physical planner maintains

development control over the land.

3.2.3 Surveying

Surveying is a process done to ascertain geographical boundaries and ownership of the land in

question. ALC certifies land ownership and reports to the DLB their recommendations. After

receiving the application from the ALC, the DLB issues “Request to Survey” (RS) to the DSS to

coordinate the survey of the land in question. The DSS issues an Instruction to Survey (IS) to

the private surveyor contracted by the applicant to conduct the work. The IS is supposed to be

elaborate on issues like: how to do the work, reporting format and timeliness. However, in


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carrying out the field work, the private surveyors are supervised by the DSS. Once the DSS is

satisfied with the work, the file is forwarded to the cartographer in the drawing office who then

plots the measurements on the district cadastral sheet, assigns block and plot number, and

comes up with blue prints after which, the file is submitted to the C/S&M for approval, plotting

(cartographing) on the national sheets and deed printing. The deed plans are then forwarded to

the C/LA for preparation of the lease offer.

3.2.4 Valuation

This is the process of determining the money value of the land in question. The valuation

process begins with the issuing of instructions by the interested person to the private Valuer

which includes what and why he/she wants to value the land. Valuation of properties (land) is

carried out before selling and buying land to determine the stamp duty to be paid to

Government. After receiving the instructions, with the guidance of the interested party, they go

to the field to inspect the property, and then the field notes will be used to write reports and

the analysis of the necessary figures which include the method and the basis of valuation and

the opinion of values submitted by the Valuer.


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CHAPTER FOUR

FINDINGS

This chapter presents the findings of the audit. It describes the various challenges affecting the

performance of land management institutions which include their constitution, funding, staffing

and administrative functions.

4.1 CONSTITUTION OF DISTRICT LAND BOARDS(DLBs) and AREA LAND COMMITTEES

(ALCs)


Sections 56, 57 and 58 of the Land Act as amended requires the establishment of DLB

consisting of a minimum of five (5) members who hold office for a period of five (5) years and

may be eligible for reappointment for a further one term. Paragraph 3.1 of the guidelines on

the administration of land of 2005, requires members of the DLB to be appointed by the District

Council (DC) on the recommendation of the District Executive Committee (DEC) and approved

by the Minister for Lands.

Through document review and field visits, we noted that DLBs in 21 (91%) out of the 23

districts visited had been constituted with the exception of Mukono and Moroto. We further

noted that the process of constituting the Boards was taking between 8 to 19 months after the

expiry of the old Boards. In ten (10) districts, it took over a year (12 months and above) to

constitute a new Board after the expiry of the old Boards. The details are in Appendix 4 .

In Mukono and Moroto districts, management explained that some of the proposed names of

the Board members were rejected in the vetting process.

Failure to appoint new DLBs upon the expiry of the previous Boards was attributed by the

districts to the long appointment process. Audit attributed the delay to the non adherence by

the districts to the appointment guidelines.

Failure to institute new DLBs upon the expiry of the previous Boards leads to delays in the

processing of land transactions.


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Management response:

The Districts are notified and advised to appoint new Boards six months prior to the

expiry of the Board’s term of the office but for a number of reasons including

political interference the Boards are not appointed in time. Unfortunately, because

the DLBs are not under the direct supervision of the Ministry there is nothing much

that the Ministry can do to coerce the District Councils to ensure expedited action,

other than simply reminding them and maybe refusing to handle their work.


Section 64 (1) & (2) of the Land Act CAP 227 as amended, requires each Sub County or Division

Council to have a Land Committee consisting of a Chairperson and four (4) other members

appointed by District Council (DC), on the advice of Sub County or Division Council. Section 64(4) requires members of the Land Committees to hold office for a period of three (3) years and

eligible for reappointment for a further one term.

In the 23 districts visited, we noted that although Area Land Committees (ALC) had been

constituted, the members had not been given formal appointment letters.

It was noted through interviews with the Chief Administrative Officers (CAOs) that districts

could not issue appointment letters to members of the ALC because of the fear to commit the

meager district resources.

In the absence of appointment letters, the actions and decisions of the ALC members cannot be

defended if challenged in the Courts of law. Failure to facilitate ALCs affects their operations

which may in turn slow down the processing of land applications.


The Ministry has been liaising with the District Councils over this issue for more

than twelve (12) years to no avail! Indeed the action of District Councils to appoint

members of Area Land Committees was borne out of this liaison with the Ministry.

They simply stopped at the stage of issuing appointment letters purportedly

because they do not have the revenue to fund them.


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4.2 BUDGETING AND FUNDING

4.2.1 Directorate of Land Management

Funds budgeted for and approved by Parliament should be released to the land management

institutions as appropriated.

Through a review of ministerial policy statements, budgets and audited accounts, we noted that

the Ministry prepared its annual revenue and expenditure estimates for the years under review

(FY 2006/2007 to 2009/2010), however, not all the budgeted funds were released to the DLM.

The DLM, on average, received 79.5% of its budgeted amount as shown in table 2.

Table 2: Showing average budget performance for the DLM; for the FYs 2006/2007

- 2009/2010

Financial Year (F/Y) Approved Budget (Ug Shs) Total releases (Ug Shs) Budget performance

in Percentage

2006/2007 785,768,852 761,890,271 97

2007/2008 1,024,702,417 666,620,648 65

2008/2009 2,259,401,777 1,782,539,174 79

2009/2010 2,454,074,979 1,886,450,020 77

Average 1,630,987,006 1,274,375,028 79.5

Source: Audited Accounts of MOLHUD for the F/Y’s 2006/2007-2009/2010.

During interviews with senior staff, it was explained that the DLM has encountered setbacks in

the implementation of the planned activities due to under-funding. For example, planned

activities such as induction and training of staff in lower land management institutions and

monitoring and inspections could not be conducted because of inadequate funding.

Through interviews with senior staff in the DLM, the less disbursement of funds was attributed

to the general budget cuts across all Government Ministries and Departments.

Inadequate funds rendered the DLM unable to implement some of its planned annual activities.


The Ministry is in agreement with the Auditor General’s recommendation.


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4.2.2 Uganda Land Commission

Through a review of the Ministerial policy statements and budgets, we noted that the income

and expenditure estimates of the Commission were part of the Ministry’s estimates. We further

noted that not all the budgeted funds of the Commission were released by the MOFPED, since

the Commission on average received 87% of its budgeted amount as shown in table 3.

Table 3: Showing average budget performance for the ULC; for the FYs 2006/2007

- 2009/2010

Financial Year

(FY)

Approved Budget (Ug

Shs)

Total releases (Ug

Shs)

Budget

performance

in Percentage

2006/2007 965,111,862 906,738,517 94%

2007/2008 1,169,590,000 1,056,334,227 90%

2008/2009 1,185,001,000 775,461,039 65%

2009/2010 5,776,000,000 5,667,632,935 98%

Average 87%

Source: Audited Accounts of the ULC for the FYs 2006/2007-2009/2010.

During interviews with senior staff, it was explained that the Commission has been facing

financial challenges due to budget cuts and as a result, some of the planned activities such as

land inventory exercise and processing of titles for Government land could not be undertaken.

Inadequate funds rendered the Commission unable to implement some of its planned annual

activities.



4.2.3 District Land Offices (DLO)

District Land Offices are supposed to prepare work plans showing the activities to be carried

out in a given FY. The expenses of the district land office should be paid from the district

administration funds.


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Through interviews with various staff in the district land offices visited, it was noted in 70% (16

out of the 23) of the districts visited that, on average, 80% of the planned budgets of land

offices was not released to as shown in Appendix 5 . The most affected districts were Kabarole

and Wakiso which were not allocated any funds while Moroto and Lira were allocated 3% and

5% in FYs 2008/2009 and 2007/2008, respectively.

Through interviews with the CAOs and document review, the failure by the districts to fund the

budgets of land offices was attributed to the low levels of local revenue which is not adequate

to cover all the needs of the DLO’s.

We noted that much as the local revenue in the districts is generally low after the abolition of

graduated tax; the failure by the districts to fund DLOs was also attributed to lack of

prioritization of the activities of the land offices.

Inadequate funds rendered the district land offices unable to implement some of their planned

annual activities. For example, in the 23 districts visited, land offices had planned to carry out

sensitization of the public about land matters at the District and Sub County levels almost every

FY, but they were unable to do so due to limited funding. In addition, lack of funding

demoralizes the staff, which in turn affects their performance at work.




Funds budgeted by the Districts for DLB for payment of Board Expenses (sitting allowances)

should be released by the Central Government (MOFPED) as appropriated by Parliament.

Secretaries to the DLBs should prepare work plans indicating the utilization of these funds.

In 21 out of the 23 districts visited (91%), it was noted through interviews and documents

reviews, that DLBs were directly funded by the Central Government (MOFPED) and they had

received on average 99% of their budgeted funds. However, it was observed that they were

not preparing annual and quarterly work plans. The budgeted and released amounts for DLBs

shown in the district budgets could not be supported with work plans detailing the number of

meetings planned for the year.


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We also noted through discussions with MOLHUD officials that DLBs are required to sit twice a

month, which was not fulfilled due to insufficient funds released to districts. They further

explained that whereas the number of the districts continues to rise as a result of newly created

districts, the total releases to DLBs by MOFPED remain fixed.

Through interviews with senior staff in the districts, failure to prepare work plans was attributed

to lack of substantive Secretaries to the Boards. The officers who were acting in those

capacities were in most cases reported to be busy with activities related to their substantive

offices. Also the lack of knowledge in preparing work plans was cited as another cause for

failure to prepare work plans.

Without work plans, the DLB’s lacked a guiding tool to effectively implement their activities.


Members of DLBs are paid an allowance not salary and this issues from the

Consolidated Fund. However it needs to be noted that since the institution of DLBs

when Districts in Uganda were yet 56 in number, the total amount of monies

divisible among the 56 districts is what still subsists now when districts in Uganda

are double that figure! In essence, therefore, the monies are by now grossly

inadequate and hence affect the regularity of the DLBs seating and contributes to

the failure of the DLBs to carry out most of their planned activities and adversely

affecting not only the operations of the DLBs but of the entire Land Administration

system.


According to Section 66 (1 & 2) of the Land Act CAP 227 as amended, members of the ALC are

supposed to be paid such remunerations as may be determined by the District Council (DC) on

the recommendation of the District Executive Committee (DEC) and the Committee expenses

are charged on the District administration funds. Section 64 (6) (d) as amended, further

requires the responsible Sub County or Division Council to indicate their preparedness to assist

in the funding of the Committee.

Through interviews with ten (10) Chairpersons of the Area Land Committees visited and

documents review, it was noted that the District Councils did not determine the remunerations


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to be paid to the members of the Land Committees nor did the Sub Counties indicate

preparedness to assist in funding of the committee activities. A review of the budgets of five (5)

Sub Counties and (4) Division Councils, revealed that no budgetary provisions were made for

the funding of the Committees for the FYs 2007/2008 up to 2009/2010.

District officials through interviews stated that with the low local revenue collections at the

districts, there was no need to determine and budget for the remuneration of members of ALCs

which they (districts) could not finance given the high number of the members of the

Committees which in all districts was 60 or more as shown in Appendix 6 .

Consequently, some ALCs have come up with fees which applicants have to pay to facilitate

their work.

In other cases, though there were no standard fees set by the ALC’s, applicants had to provide

for transport, lunch and stationery if the committee was to inspect their land. This creates

fertile ground for corruption.


It has variously been noted that ALCs operate using their Clients’ facilitation. This is

not only irregular but is potentially riddled with all sorts of unjust and corrupt

tendencies. The solution that has been mooted is for the recognition of the ability of

the clients to fund their inspections; regularize an applicable rate which would then

be gazetted as part of the Districts’ revenue source and out of which ALCs would be

remunerated.

4.3 STAFFING


According to the approved macro structure and establishment as at September 2007, the

MOLHUD is composed of three (3) directorates of: Land Management, Housing and Physical

Planning and Urban Development.

Matters of land administration fall under the DLM which is further divided into three (3)

departments, namely: Land Administration, Surveys and Mapping and Land Registration. Under

the structure, the DLM has an approved staff establishment of 151 staff.


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Scrutiny of the approved structure and staffing list and interviews with the senior staff in the

DLM revealed that the MOLHUD has not filled all the positions in the approved structure of the

DLM. A total of 61 posts existing in the DLM were vacant as indicated in Table 4.

Table 4: Showing staffing gaps in the DLM

S/NO. DEPARTMENT APPROVED STAFF

ESABLISHMENT

POSITIONS

FILLED

VACANT POSTS

1 LAND ADMINISTRATION 46 22 24

2 SURVEYS & MAPPING 81 46 35

3 LAND REGISTRATION 24 22 2

TOTAL 151 90 61

Source: MOLHUD Annual Performance Report of 2009/2010 from Pages 32 up to 35.

Through interviews with senior staff and document review, it was noted that the staffing gaps

in the DLM were due to the slow Government recruitment process. However, management

explained that the MOPS was in the process of recruitment.

Lack of the requisite number of staff may lead to delays in handling land transactions.


The Ministry’s structure was approved long ago. The failure to fill the establishment

is not the function of lack of structure. The factors militating against the speedy

recruitment are historical dating back to the first re-structuring of government in

1991 when the department of Land Registration and the Division of Valuation were

cocooned for close to eight years (up to 1998), and on reverting back to the main

stream Service they had lost most of their staff! On the creation of the current

Ministry of Lands, Housing & Urban Development an establishment was approved by

Cabinet, a sizeable part of which the Ministry of Public Service went ahead to delete

and for the better part of a year the Ministry struggled to regain. The above is made

worse by the fact that most of the technical skills in Land Management are difficult

to attract to the Public Sector; they prefer the Private sector as it has better

rewards.


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4.3.2 Uganda Land Commission

In line with the Public Service Pay Policy, the Ministry of Public Service (MOPS) has the overall

mandate to determine, control, manage and execute custodial responsibility for approved

establishments of the public service.

We noted that the Commission has never had an approved structure by the MOPS since its

inception. Management explained that they had contacted the MOPS on the matter and the

process of restructuring the Commission was under way, which will lead to the improvement of

the structure. However, correspondences in respect to the above process were not availed for

audit.

Failure by the Commission to have an approved staff structure was attributed to bureaucracy by

the MOPS to conduct a restructuring exercise for the Commission. However, correspondences inrespect to the issue noted above were not availed for verification.

The absence of an approved structure has delayed the appointment of requisite staff, such as:

the Rating Officers, Valuers, Surveyors and Land Officers, which has impacted negatively on the

operations of the Commission.


Ministry of Public Service has been requested to allow ULC to fastrack its structure

rather than wait for the entire Government restructuring.

4.3.3 District Land Offices

Section 59 (6) of the Land Act CAP 227 as amended requires each District Council (DC) to have

a District Land Office which provides technical services to the DLB through its own staff, or

through external consultants in the performance of its function and is comprised of staff such

as: the District Land Officer, District Registrar of Titles, District Staff Surveyor, District Physical

Planner, District Valuer, District Cartographer and Secretary of the DLB who are appointed by

the District Service Commission (DSC).

During inspection of the districts and through interviews with technical staff, we noted that the

DLOs existed and were providing the technical services to the DLB as required by the law.


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However, in 20 out of the 23 districts visited, more than one position of technical staff was

vacant, as shown in Appendix 7 . The most affected positions were District Valuers and

Secretaries of the Boards with 19 staff positions vacant, District Physical Planners with 13,

District Registrar of Titles and Land Officers with 12.

The audit further noted that districts cannot afford to engage external consultants as provided

for in the Law.

The shortage of district technical staff was attributed to failure by the DSC to recruit staff and

the districts failing to retain those who have been recruited. Where districts have recruited

these technical staff, they are not well motivated and thus retention is hard. For instance, the

promotion of staff under the decentralized structure is difficult due to the staff establishments

being approved according to the district grading and this has resulted into low staff morale dueto limited career development.

The shortage of some technical staff has forced the district land offices to seek services of staff

from neighboring districts. This slows down the processing of land transactions leading to

delays.


We have already noted above that recruitment at the Local Government is

complicated by the 65% ceiling imposed upon them by the Ministry of Finance. It is

also true that even where the manpower is available at times DSCs do not recruit

certain persons for the simple reason that they do not hail from the district of

concern.

We agree with the observation noted under “Effect” by the AG. The Ministry has

been encouraging the Districts to share the available Human Resources to enable

them carry on with their service to the public.


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4.4 ADMINISTRATIVE FUNCTIONS


4.4.1.1 Development of the National Land Policy (NLP)

The DLM was responsible for the development of a National Land Policy (NLP) by the end of FY

2008/2009. The NLP is intended to serve as a systematic framework for defining the role of

land in national development, land ownership, distribution, utilization, alienability, its

management and control.

As part of the policy formulation process, a National Land Policy Working Group (NLPWG) was

instituted in 2001 to steer the process of making the NLP and as such, several stakeholders’

consultations, studies, media briefings, workshops, reviews and meetings were held to

harmonize various positions and opinions.

Through interviews with some members of the NLPWG, senior officials in the MOLHUD and

document review, it was noted that although several drafts of the NLP have been prepared, the

final NLP had not been approved. Management further explained that the timeline for

production of the final draft was extended up to FY2009/10 and the final draft has been

submitted to Cabinet. Plans are underway to lay it before Parliament by March 2011 for

approval.

We noted that the development of the NLP is one of the project components funded under the

Land Tenure Reform Project (LTRP) which had received a total of Ug. Shs 55 billion by

November 2010 (time of the audit). However, due to insufficient information provided, we could

not establish the amount spent by the project on the development of the NLP.

The officials interviewed explained that because of the participatory and wide consultative

nature of gathering views and opinions from various stakeholders, the exercise has not ended

as various stakeholders have continued suggesting new ideas. They further explained that the

exercise was at one time abandoned to allow sensitization of the public during the enactment of

the Land Act.

Without a NLP in place, the management of land by the various land administration institutions

and the processing of land transactions remains unguided and uncoordinated leading to the

various challenges currently affecting the land sector.


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This is part of the Ministry’s planning to be carried out next financial year.

4.4.1.2 Induction and Training of ALC and DLB MembersInduction

According to the annual performance reports, the Ministry planned to induct a total of 2,462

members of the ALCs and DLBs as shown in table 5 .

Table 5: Showing planned induction of ALC and DLB members

FY 2006/2007 2007/2008 2008/2009 2009/2010 TOTAL

ALC 200 610 610 900 2,320

DLB 24 35 23 60 142

TOTAL 224 645 633 960 2,462

Not all the 2,462 ALC and DLB members had been inducted as planned. Through document

review, we noted that a total of 1,332 ALC and DLB members (i.e. 54%) had not been inducted

as shown in the tables 6 and 7 .

Table 6: Showing ALC members not inducted.FY 2006/2007 2007/2008 2008/2

009

2009/2010 TOTAL

Actual inducted 56 203 460 360 1,079

Not inducted 144 (72%) 407 (67%) 150 (25%) 540 (60%) 1,241 (53%)

8/9/2019 Value for money audit of the functionality of

Value for money audit of the functionality of land management institutions in Uganda

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