Police issue fresh Basajjabalaba summons
Posted Thursday, January 3 2013 at 02:00
Police yesterday issued criminal summonses against businessman Hassan Basajjabalaba over allegations of forgery.
Mr Basajjabalaba is required to attend the Criminal Investigations and Intelligence Directorate this morning after which he is set to be charged in court for allegedly forging a consent judgment he used to evade taxes on a Shs142 billion compensation claim from government.
The compensation itself was irregular and is the subject of separate criminal investigations.
The summonses, which were served on the businessman’s lawyers yesterday, come after the Director of Public Prosecution gave the go-ahead to his prosecution after more than a year’s delay. Mr Basajjabalaba is a high-ranking member of the ruling NRM party and one of its key financiers and king-makers. This is the third time Mr Basajjabalaba is summoned over the matter after he failed to turn up twice before.
The Shs142b compensation arose from the reversal of the then Kampala City Council decision to sell markets of Nakasero, Shauriyako, St. Balikuddembe (Owino), and the Constitution Square to Mr Basajjabalaba.
The compensation process was marred with irregularities and led to the resignations of former Attorney General, Prof. Khiddu Makubuya, and Finance Minister Syda Bbumba. An audit by the Auditor General found no basis for the compensation, noting that the claims were heavily inflated in any case, and that, in reality, it was the businessman who owed government over Shs900m in unpaid taxes and fees.
According to investigators, the compensation, when received, was subject to taxation but Mr Basajjabalaba allegedly forged a consent judgement that helped his firm avoid Shs21b in taxes. A handwriting expert found that all the signatures on the said consent judgement were forged, except that of Mr Basajjabalaba.