Uganda Development Corporation Act, 2016

Defines terms used in this Act: Board; chairperson; Corporation; currency point; Minister; undertaking.

The Board may appoint committees for specified purposes; committees shall have a chairperson and other Board members; committees may invite or co‑opt persons (who may not vote); members may be paid allowances with the Minister's written approval; committees may regulate their procedure subject to Schedule 3.

The Corporation must cooperate with government ministries, departments and agencies in implementing the Act; those ministries, departments and agencies must provide necessary assistance to the Corporation; persons in authority who contravene that duty commit an offence punishable by a fine of forty-two currency points or imprisonment not exceeding three years or both.

Establishes the Uganda Development Corporation as a body corporate and grants the Corporation permission to acquire, hold or dispose of movable and immovable property, to sue and be sued in its corporate name, and to do all acts a body corporate may lawfully do for discharging its functions under this Act.

The Corporation must establish subsidiaries and promote research, and may enter into public–private partnerships and assist financing and management through such partnerships.

Lists the Corporation's functions, including implementing its object; facilitating government investment; promoting and implementing public–private partnerships; entering joint ventures; managing government interests in specified entities; advising the Minister; financing or guaranteeing undertakings in partnership; registering the Corporation abroad; acquiring or underwriting interests; appointing representatives; cooperating with research bodies; ensuring viability of partnered entities; and performing related functions. Also states it is not authorised to compulsorily acquire undertakings or interests.

The Corporation must follow the Government policy on industrial and economic development when performing its functions; the Minister may, in writing, give policy directives to the Corporation about attaining its object.

The Board is composed as specified; members are appointed by the Minister with Cabinet approval; the Minister must ensure at least 40% of appointed members are women; certain persons may not be appointed; the Executive Director does not have voting rights; some members serve three-year terms and may be reappointed only once.

Members appointed by the Minister stop being Board members if specific events occur (removal by Minister, resignation, insolvency, certain convictions, election to public office, incapacity, undisclosed conflicts, misconduct); a member may resign in writing to the Minister; the Minister may appoint a replacement for the remainder of the term.

The Board must ordinarily meet at least once every two months; it must also meet if at least three members request in writing; meetings must follow Schedule 3.

Members of the board, except the Executive Director, are entitled to remuneration or allowances approved by the Minister in consultation with the Ministers responsible for public service and finance.

The Corporation must have a full-time Executive Director appointed by the Minister on the recommendation of the Board; the Executive Director holds office for four years and may be reappointed once; a person may not be appointed unless they have considerable management or administration experience; the office is vacated on certain grounds including resignation, insolvency, conviction with imprisonment of six months or more, inability to perform duties, failure to disclose interests, or misconduct.

The Executive Director is the chief executive officer and must implement Board policies and programmes, manage Corporation funds and property, administer and control staff, keep the Board informed, keep transaction records, and is answerable to the Board, subject to this Act and the Board's general supervision.

The Board appoints a secretary; the secretary must act as principal legal advisor, manage board meeting business and records, perform functions assigned by the Executive Director, be answerable to the Executive Director when performing functions, and possess relevant professional qualifications.

The Corporation must have sufficient staff; the Board must appoint staff; the Board may delegate appointment power to the Executive Director.

Members of the Board, officers of the Corporation, and persons acting on their directions are not personally liable for acts or omissions done in good faith while exercising functions under the Act.

The capital of the Corporation is five hundred billion shillings; the Minister may, with Cabinet approval and by statutory instrument and subject to the Act, increase that capital.

The Corporation's funds include money appropriated by Parliament; grants, gifts or donations; loans approved by Cabinet per the Public Finance Management Act, 2015; and profits, dividends, fees or charges. All funds received under subsection (1) must be declared to the minister responsible for finance in accordance with the Public Finance Management Act.

The Board may, subject to Article 159 and with the approval of Parliament, borrow money to meet its obligations or to discharge the Corporation's functions under this Act.

The Corporation may open and operate bank accounts necessary for performing its functions, in accordance with section 33(2) of the Public Finance Management Act, 2015.

The Board must prepare and submit to the Minister, at least two months before each financial year, a budget with estimates of the Corporation's income and expenditure for the next financial year; the Corporation must not spend more than that budget without the Minister's approval.

The Corporation's funds may be used to perform the Corporation's functions in line with the annual budget estimates for each financial year.

The Corporation must declare to the Minister the earnings from undertakings, joint ventures or public private partnerships within three months after the end of each financial year; the Board may, in consultation with the Minister, apply those earnings to the Corporation's business.

The Board must declare to the Minister any money of the Corporation that is not utilized at the end of each financial year.

The Corporation's financial year must be the same as the Government's financial year.

The Corporation must keep proper books of accounts and all records relating to its transactions and affairs.

The Auditor General (or an auditor appointed by them) must audit the Corporation’s accounts each financial year, and the Auditor General must submit to Parliament a report on those audited accounts within six months after receipt of the accounts.

Establishes the Industrial and Economic Development Fund, lists its permitted uses and sources of funds, states that the Fund is to be managed by the Corporation, and requires the Minister (with Cabinet approval) to make a statutory instrument for its control and management and to lay that instrument before Parliament.

The Board decides the Corporation's common seal; the Executive Director keeps it; when the seal is affixed it must be authenticated by signatures of the Executive Director and the secretary; certain contracts may be executed without a seal by the Executive Director or persons authorised by the Board.

The Board must annually make and submit a report and the Corporation must submit audited financial statements with it; the Board must also send quarterly and other reports as required, and the Minister must table the annual report within six months of receipt.

Employees of the Corporation must not disclose information obtained through their employment to unauthorised persons, except when authorised by law.

A person with an interest in a matter before the Board who fails to disclose that interest may be prosecuted and punished under the Anti-Corruption Act, 2009 for conflict of interest.

The Minister must, in accordance with section 4(1)(e) and by statutory order, list other government property, rights, assets, liabilities and obligations to be included in Schedule 2.

The Corporation may, on commencement, accept into its employment certain Uganda Development Company Limited employees who opt in; those who opt in are subject to competitive interview and not-less-favourable terms, and those not accepted are entitled to terminal benefits paid by the Government.

The Minister may, with the approval of Cabinet and by statutory instrument, amend the Schedules to this Act.

The Minister may, in consultation with the Board and by statutory instrument, make regulations to implement the Act and may prescribe penalties, continued-offence penalties, forfeiture, fees and forms under the Act.