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Uganda free zone authority pursue recovery of UGX 7.4 billion from Wakiso land dealers

Uganda Free Zone Executive Director Richard Jabo (R) and Pius Mukhooli (C) flanked by Claire Semambo Kaweesa (L)

Wakiso, Uganda | THE INDEPENDENT  |  Uganda Free Zone Authority has asked two Wakiso Land dealers who sold it non existent land in Buwaya to refund 7.4 Billion shillings it spent in the transaction.

Among those being asked to refund the money are Uganda’s largest law firm, Katende, Ssempebwa and Company Advocates who should refund up to 5.9 Billion shillings it received towards payment of Kampala residents Engineer Dick Lutaya and Paul Bukenya, from whom the non existent land was bought in 2017.

The land located on Block 535 – 540 Plot 236 at Buwaya, Busiiro has encumbrances that have prevented its transfer to Uganda Free Zone Authority which attempted desperately to register it in its name for setting up an Export Processing Zone, next to Entebbe International Airport.

The move follows a directive by the Attorney General, William Byaruhanga dated September 13th, 2019 to Eng. Dr. Frederick Kiwanuka, the Chairman Board of Uganda Free Zone Authority directing them to recover the said money, more than a year after they failed to register the land in the Authority’s name.

Richard Jabo, the Executive Director Uganda Free Zone Authority says he wrote to the internationally ranked top tier law firm to refund the money after last week after they failed to hand the land located to the authority as agreed in the sale agreement.

Jabo says the money was paid to Kampala residents Paul Bukenya and Engineer Dick Lutaya through Katende, Ssempebwa and Company advocates, the firm they used to bid for the sale of the land to government.

Appearing before the Land Commission of Inquiry into Land Matters, Jabo said another One Billion Shillings was paid to Kirya and Company Advocates, another law firm which represented the interests of some of the Bibanja holders occupying the land after they objected to the transfer of the property.

Another 22,000 US Dollars (approximately 80 Million shillings) was paid to Civil Aviation Authority as premium for 5 Acres of Land located in the same area. He was accompanied to the hearing on Monday by two lawyers Pius Mukhooli, the Head of Legal Department of Uganda Free Zone Authority and his counterpart Claire Semambo Kaweesa, the Head of Legal Department of the Ministry of Finance.

Jabo explained that the land was procured from different people in order to raise 109 acres out of the 136 acres they required for setting up the Duty Free Export Processing Zone, next to Entebbe International Airport.

The Land Commission of Inquiry is investigating double titling of the land, its transfer and loss of tax payers’ money amounting to 7.4 Billion shillings. The property was acquired by Uganda Free Zone Authority in 2017 and the surveyor who demarcated the land earned a fee of 46 Million shillings.

Jabo had a hard time explaining to the Commission how they went ahead to procure the land against the advice of Keith Muhakanizi, the Permanent Secretary Ministry of Finance, the Chairman Board of Uganda Free Zone Authority as well as other whistleblowers.

The same land is being claimed by many individuals including Augustine Bukenya Muwuluzi, a resident of Mityana and his siblings, Bernard Kityo, 52-year-old resident of Buwaya among others.

The Commission pinned Richard Jabo for failing to withhold six percent withholding tax from the money paid to Katende, Ssempebwa and Company Advocates in addition to paying stamp duty twice. He attempted in vain to convince the Commission to place the blame for the loss of the money on Ministry of Lands, Housing and Urban Development saying they cleared the transaction.

Commissioner Mary Oduka Ochan, another member of the Commission said the executive Director should be held accountable because he undertook some of the processes behind the Board of Uganda Free Zone Authority without proper due diligence.

The Land Commission of Inquiry Chairperson, Lady Justice Catherine Bamugemereire said the Authority’s flaws began right at the method it chose to procure the land using the Public Procurement and Disposal of Public Assets Authority Act 2003 instead of the straight forward Land Acquisition Act.

More witnesses are expected to be summoned to give further evidence into the botched land transaction.

 

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