State drops Basajjabalaba Shs142b markets compensation case

The State has lost interest in pursuing the Shs142b city markets compensation case against businessman Hassan Basajjabalaba and his brother Muzamiru Basajjabalaba.

Daily Monitor has learnt that the case was withdrawn by the prosecution in August after tendering in a nolle prosequi, with the duo brothers being discharged in October.

“Criminal case no.003 of 2013 Uganda Vs Hassan Basajjabalaba and Muzamiru Basajjabalaba was withdrawn by the state by way of nolle prosequi dated August 30. This court was presented with the said Nolle on October 6 and pursuant to Section 134 (1) of the Trial and Indictment Act, the accused were discharged,” reads in part the response letter by the registrar of the Anti-Corruption Court to lawyer Isaac Ssemakadde.

About a fortnight ago, Mr Ssemakadde through Legal Brains Trust, a non-governmental organisation that champions the rule of law, democracy and accountability, wrote to the head of the Anti-Corruption Court, Justice Lawrence Gidudu, demanding that he fast-tracks the fixing and hearing of the matter since the Constitutional Court had ordered their trail.

“We represent the applicant in the above-captioned matter. It seeks to invoke the High Court’s inherent supervisory powers …in relation to criminal case no. 003 of 2013 Uganda Vs Hassan Basajjabalaba and Muzamiru Basajjabalaba wherein the DPP and the lower court have failed to take a demonstrable step in expediting the trial of the Basajjabalaba brothers despite having received a green light from the Supreme Court on November 19, 2021- more than a year ago,” Mr Ssemakadde wrote to court last month.

The businessman and his brother had been facing several charges ranging from forgery of a judicial document, uttering of a false document and conspiracy to defeat tax laws.

The charges arose from the government’s cancellation of his lease contracts to develop several markets and other facilities around Kampala City for which he was compensated Shs142b for the loss.

However, after being compensated, a private citizen started a private prosecution of the businessmen, accusing them of defeating payment of taxes arising out of the huge compensation before the DPP took over the matter.

Likewise, Legal Brains Trust of Uganda sued Basajjabalaba, alongside his five companies: Haba Group, Victoria International Trading Company, Sheila Investments, Yudaya International Limited, and the First Merchant International Trading Company.

During the June 11 and June 13, 2019 hearings, the court heard that between January 2000 and December 2011, Mr Basajjabalaba and his companies entered into contracts with Kampala City Council to manage, own and redevelop Owino, Nakasero and Shauliyako markets, and the Constitutional Square, but the said contracts were entered into without the advice of the Attorney General.

In May 2018, the Constitutional Court ruled and directed Basajjabalaba brothers to stand trial before the Anti-Corruption Court on grounds that their trial wasn’t unconstitutional since the said charges fall under the ambit of the Anti-Corruption Act.

The Basajjabalaba brothers had challenged their prosecution before the Anti-Corruption Court, citing a number of alleged constitutional breaches and had asked the Constitutional Court to quash it.

Reacting to this development yesterday, Mr Ssemakadde said: “There will always be illegal conduct that is not pursued by State actors such as the Criminal Investigations Department, Directorate of Public Prosecutions, Inspectorate of Government or Public Procurement and Disposal of Public Assets...”

He also vowed to file a new case to ensure that the matter is prosecuted to its logical end.