How Nateete Market land ownership changed hands

Kampala. Nateete Market on Block 234, Plot 18 in Mengo, a Kampala suburb, has been changing hands.
First, from original owner Ali Nsimbe, who leased it to Mengo Municipal Council for 99 years on December 14, 1964, then inherited by Kampala City Council (KCC), now Kampala City Council Authority (KCCA). The lease elapses in 2063 with KCCA as the owner.
But a likely high level conspiracy at KCCA legal department is partly blamed for the controversy plaguing the sale of Nateete Market, the Daily Monitor has learnt.

Available documents lend credence to the fact that the KCCA legal department officials have been at the centre of the battle for ownership and loss of the market land to private developers.
While KCCA distances itself from ownership of the market land, a declaration on October 8, 2015, by KCCA legal team member Emmy Waligo for cause No.2586 (KCCA Vs Elder & Hai General Agencies Bailiffs and others) in paragraph 12 states that at the material time of issuance of the said warrant of attachment, the applicant (KCCA) owned and still owns and occupies the same suit land [Nateete] Market.

“Before the case could be listed and heard, the sale of [Nateete] land took place. The applicant has thus lost interest in prosecuting the said application and has taken other remedial steps,” Mr Caleb Mugisha, the KCCA acting deputy litigation director, wrote to the registrar executions and bailiffs department of the High Court on January 25.

KCCA registers caveat
In two questionable incidents accruing from the transaction, KCCA on November 11, 2015, registered a caveat on the Nateete Market land under instrument No.00022828 but withdrew the same, leading to court costs. KCCA had earlier on October 8, 2015, filed an objector application but was withdrawn on January 25, 2016, because it had become worthless.

Justice Ezekiel Muhanguzi on November 18, 2016, ordered that a caveat which KCCA had placed on Nateete Market land be lifted and RR Family Transporters be given a Title Deed and awarded costs.
The withdrawal of an objector application by KCCA consequently attracted court costs. The KCCA spokesperson did not reply to this specific question put to him by Daily Monitor regarding the exact amount of money KCCA had paid in court costs.
KCCA had sought to stop the auction of Nateete market by Elder & Hai General Agencies and Court Bailiffs.
KCCA has been faulted for failure to go to court to appeal the auction of the market, and attempts by the Daily Monitor to seek more information from Mr Caleb Mugisha, who represents KCCA, did not yield much fruit.

But Mr Mugisha said: “Our hierarchy doesn’t allow me to speak to the press directly on such matters. Talk to the official spokesperson of KCCA, Mr Peter Kaujju. He is best placed to talk to you on all these matters.”
In one of the correspondences seen by Daily Monitor, Mr Kaujju explains that KCC in September 2000 agreed to buy the Nateete land at Shs130m and Shs110m was advanced but the sellers refused to avail the land transfer forms and title deed. KCCA on September 3, 2014, requested for the title deed in vain.

“We sought to enforce the said sale agreement by instituting a suit against the beneficiaries of the late Asuman Damulira but the same was dismissed with costs that there was no valid sale agreement of the land between the parties... At the time of the agreement, the land was not registered in the names of the Estate of Damulira,” the statement reads.
Lubaga deputy mayor Ahmed Ntare said information available regarding the Nateete market land puts KCCA officials on the spot.

Wasted chance?
“We understand the bailiffs gave KCCA priority to buy the land for the traders, but the officials declined. Court documents indicate that KCCA legal team was closely following the events that led to an eventual sale of the market. They chose to keep quiet, only denying ownership of the market,” Mr Ntare said.

“The losses incurred by KCCA are ridiculous and present questionable behaviour among the authority legal team and under the watch of their top supervisor,” Mr Ntare added.
Last week, the traders protested the alleged sale of Nateete Market land with Kampala Minister Betty Kamya instituting a probe committee. She warned of stern action against any KCCA officials that would be found culpable.
But court documents indicate that the buyers of Nateete Market, the (people) behind RR and Family Transporters Company Ltd are G. Ruhweza and Grace Ruhweza.

They bought the market at Shs3.5b by a court order from sellers Musa Damulira, Madina Nasejje, Juma Lutwama, Sulaiman Nsimbe and Ismael Sebugwawo.
The buyers, according to court documents, borrowed Shs250m from David S.F Bukaalanye in 2007, but failed to pay back. The lender in 2014 then filed a case in Land Division of the High Court in Kampala, which he successfully won, leading to the attachment of Nateete Market land title.

Sellers Musa Damulira, Madina Nasejje, Juma Lutwama, Sulaiman Nsimbe and Ismael Sebugwawo then received powers of attorney on the estate of the late Asuman Damulira on November 26, 2001 by Rtd Judge V.F. Musoke.
But other claimants, namely Muhamed Bulega, Haruna Muyingo, Asad Kiragga, and Hajji Rashid Kibirige (sacked market chairperson), have emerged with powers of attorney granted on November 24, 2014, by Justice Catherine Bamugemereirwe.

Chronology of events

In 1967: Asuman Ddamulira, the heir to Ali Nsimbe (original owner), is registered as the administrator of Ddamulira’s estate. After his (Ddamulira) death in 1989, the Administrator General assumes control in 2000 and later grants powers of attorney to Shaban Zizinga and Musitafa Muyingo to manage all the property of the late Ddamulira.
2006: Nateete Vendors Company is registered under unclear circumstances as the proprietors of the sublease LRV 573 Folio 6, Plot 234, but KCC then files a suit and the lease is revoked in 2007. In a manner viewed as conspiracy, Steven Ntanzi, Dirisa Ndugwa and Joseph Zziwa surrender the lease on behalf of the traders.

But KCCA spokesperson Peter Kaujju, in a statement, says: “Case Vide 556 of 2007 where KCC Vs Nateete vendors company Limited (supra) where KCCA is challenging the sale of Nateete Market, our legal team proposes to challenge the said execution proceedings at the Executions and Bailiffs Division”.
2015: The High Court (Commercial Division) in civil suit No. 95 of 2015 decrees that the administrators pay Shs250m to David F. Bukalanye. A warrant of attachment of immovable property is issued to Elder and Hai General Agencies bailiffs. An advert is placed in Daily Monitor on July 13, 2015 to sell Nateete Market.
October 16, 2015: A consent agreement between Mr Bukalanye and the administrators to sell Nateete Market by public auction is reached and on October 21, 2015, court issues an order authorising the sale.

October 8, 2015: KCCA files an objector application seeking an order releasing Nateete Market from attachment and sale in execution obtained in civil suit No. 95 of 2015.
January 23, 2017: The High Court orders that KCCA removes the lease registered under KCCA 41440 to Mengo Municipal Council.
February 14, 2017: Court summons KCCA to show cause why warrant for vacant possession should not be issued.

March 7, 2007: Lawyer for defendants write to KCCA demanding a vacant possession of the market.
March,15 2015: KCCA writes back to lawyer for defendants stating it is not in possession of Nateete Market land.
March 17, 2017: Nateete Vendors Company Ltd surrender a sublease to the new buyers on instrument number KCCA 00039549.

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