Businessman Hassan Basajjabalaba has told COSASE that he is seeking compensation from Government over the cancellation of his company’s deal to redevelop Kampala’s 2.5-acre City Square.
Basajjabalaba said his company won the tender in 2001 and paid Shs1.635bn to the then Kampala City Council (KCC) as a premium.
He said the proposed redevelopment would have preserved the green space on top of the square, with commercial activities developed below.
He told the committee that the arrangement provided for a five-year lease from 2002, with provision for a further 49 years.
Mr Basajjabalaba said the deal was subsequently halted, forming part of his wider compensation claims against Government over cancelled market and property arrangements.
He says he too was shocked to see the Presidents letter asking for a study on the proposal to develope city square land.
He says as for now he is waiting to see if one property will be given to two people.
Committee Chairperson Hon Muwada Nkunyingi questioned the circumstances under which Mr Basajjabalaba acquired interests in the land.
Mr Basajjabalaba, however, vowed to challenge any decision to give the land to another developer.
The committee, chaired by MPs Muwada Nkunyingi and George Musisi, queried the circumstances under which BoU issued the Shs140 billion to Basajjabalaba’s Haba Group of Companies in 2017, reportedly without security or collateral.
COSASE is also seeking an explanation for why the funds have remained ‘unrecovered’ for years and the reported impact of the outstanding amount on the operations of the Central Bank.
