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Businessman Kiggundu sued over Nakivubo lease
Under dispute. Nakivubo stadium is under redevelopment by businessman Hamis Kiggundu. Photo by Michael Kakumirizi
What you need to know:
- But the plaintiffs contend that NWMS Trustees’ conduct of creating a lease over Trust property went against previous legal advice given by the Solicitor General when he had authorised a Public Private Partnership (PPP) agreement.
Two Ugandans have sued businessman Hamis Kiggundu, the proprietor of Ham Enterprises (U) Ltd, for allegedly acquiring a lease on part of Nakivubo War Memorial Stadium land illegally.
The duo argue that whereas the Trustees of Nakivubo are prohibited from leasing or creating a mortgage or other charge whether legal or equitable on Nakivubo land, they have since leased part of it to Mr Kiggundu.
The businessman has been sued alongside the Trustees of Nakivubo, Absa Bank (formerly Barclays Bank of Uganda Ltd), Kampala District Land Board (KDLB), and the Commissioner Land Registration as first, second, third, fourth and fifth respondents, respectively.
Mr Kiggundu embarked on redevelopment of part of the contested land into a stadium in 2017 after allegedly acquiring a lease.
The facility was established under the Nakivubo War Memorial Stadium Trust Act, 1963 and is run by the Board of Trustees known as the registered Trustees of NWMS, appointed by the sports minister.
But the plaintiffs contend that NWMS Trustees’ conduct of creating a lease over Trust property went against previous legal advice given by the Solicitor General when he had authorised a Public Private Partnership (PPP) agreement.
“However, sometime this year, the second defendant with the connivance or collusion of the first, fourth and fifth defendants unlawfully created leasehold titles over the Trust property and introduced the suit property in favour of the first defendant,” the plaintiffs state on December 3.
“Subsequently, on March 4, 2019, the first defendant acting in collusion with the second, third and fourth defendants illegally caused the creation of a mortgage over the fund in favour of the third defendant to secure borrowing of $7m and the same was duly registered with Registrar of companies,” they add.
The plaintiffs, therefore, want a permanent injunction restraining Mr Kiggundu from developing and or dealing with the Trust Property on the basis of the impugned lease granted by the Trustees of NWMS.
They are also seeking for an order directing the Commissioner Land Registration to cancel the lease and mortgage and further order directing the restoration of the suit property into the names of the Trustees of NWMS.
When contacted yesterday, Mr Kiggundu said he won’t be intimidated by “enemies of progresses,” adding that he would go on with the construction works.
“Construction is ongoing and this is being done by ROKO, a very competent company. Some Ugandans just was to fight me as if am constructing the stadium in another country,” he said.
Mr Kiggundu declined to delve into the case, saying it was already before court.
Amendment of act
Last week, Cabinet passed a resolution to amend NWMS Trust Act, 1963, to streamline the inconsistencies in the current law.
The amendment further seeks to strengthen the legal framework for redevelopment and upgrading the stadium and also prohibit the board members from selling and leasing the facility, and provide for robust and proactive stadium management by providing good corporate governance.
Under the current law, the board may also support and aid in the establishment and support, whether by the grant or loan, with or without interest, of monies or otherwise, of any association or body formed for the purpose of promotion and encouragement of athletic sport and games.
But the proposed amendment has sparked criticism, especially among sports fanatics who claim that government is using this a veiled plan to sell of Nakivubo land to the developer.
