Legislators query Shs7b UNRA pay to Mukwano

Members of Parliament on the taskforce of the Committee on Commissions, Statutory Authorities and State Enterprises (Cosase), which is probing the acquisition/repossession of the expropriated properties of departed Asians, has queried why government paid compensation for its own land.
The Departed Asians Properties Custodian Board (DAPCB) has accused Uganda National Roads Authority (Unra) before the taskforce of paying Shs7b as compensation to Mukwano Group of Companies over two plots of land in Kampala, which he said belonged to government.

The land in question is Plot M30 and Plot 13/25 Press House Road, which Unra has since August 2018 acquired as part of the project for construction of the Kampala flyover.
The taskforce is chaired by Makindye East MP Ibrahim Kasozi.
DAPCB Executive Secretary George William Bizibu told journalists at Parliament after a meeting with the taskforce yesterday that the property, which was expropriated in 1972 when the Asians were expelled, remains in the records of government properties that were gazetted for sale in 1995.

“The property is in the Statutory Instrument of 1995 as one of those supposed to be sold by the Custodian Board. According to the available documents, there is no record showing it was sold to Mukwano,” Mr Bizibu said.
The meeting was attended by Unra executive director Allen Kagina, Kampala District Land Board chairperson Yusuf Nsibambi and Mukwano’s lawyers led by Mr Ebert Byenkya.
The MPs are investigating how a property supposed to be for the government was compensated for by its own agency. They also questioned how Mukwano acquired a certificate of title on an expropriated property without any record in the Ministry of Finance as per the Expropriated Properties Act 1983.

When asked whether Unra carried out due diligence on the property before compensating for it, the road authority’s head of land acquisition, Mr William Matovu, told MPs that a search in the Ministry of Lands and Kampala District Land Board found that Mukwano acquired a leasehold title of 97 years commencing January 1, 1993.
“The only encumbrances we found on the title were that there were mortgages in Stanbic Bank, Standard Chartered Bank, and City Bank. We then went into a tripartite Memorandum of Understanding with the banks, Mukwano and Unra so that we can obtain the title before effecting payments,” Mr Matovu said.

Asked to submit on the matter, Mr Byenkya, the lead counsel for Mukwano, declined to say anything because it would be subject to prejudice since the company has already taken the case to court, challenging the legitimacy of investigations by Parliament. Speaking to Daily Monitor after the meeting, Mr Byenkya said Mukwano filed for judicial review in the High Court seeking orders to quash the ongoing probe by the MPs.
“Mukwano went to court after receiving summonses from the committee because he has been occupying the land for more than 30 years without the government challenging the title. We are seeking orders to quash the proceedings of the committee,” Mr Byenkya said.

Mr Kasozi, before adjourning the matter to July 2, ruled that investigation will now focus on the Custodian Board, Kampala District Land Board, and Mukwano.
“The government through Unra compensated its own land. The problem now lies between the Custodian Board and Kampala District Land Board,” he said.
Mr Kasozi then directed Kampala District Land Board to photocopy the file concerning the said property and ensure that all the concerned parties have access to it before next week’s meeting.