As Kampala’s City Square becomes the subject of a proposed private development, businessman Hassan Basajjabalaba has resurfaced an old claim over the same prime land, telling Parliament that Government still owes him compensation over a deal that collapsed more than twenty (20) years ago.
Basajjabalaba made the claim on Wednesday when he finally appeared in person before Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE), chaired by Kyadondo East MP Muwada Nkunyingi, days after the committee had summoned him over the disputed UGX 140.487 billion Bank of Uganda (BoU) guarantee involving his Haba Group.
His City Square submission has, however, added an intriguing new dimension to the current controversy surrounding the property, coming at a time when another Kampala businessman, Hajj Hassan Bulwadda, is seeking Government’s consideration to redevelop the same two-acre public space into a solar-powered hotel, shopping mall and commercial complex.
President Yoweri Museveni has since directed Kampala Minister Minsa Kabanda to study Bulwadda’s proposal with KCCA and report back, although the directive does not itself amount to approval of the proposed development.
Basajjabalaba told COSASE that his company won the tender to redevelop the then City Square in 2001 and paid about UGX 1.635 billion to the then Kampala City Council as premium. He said the proposed arrangement provided for a five-year lease, with an option for a further 49 years.
According to Basajjabalaba, his plan was not simply to erase the green space. He explained that the development envisaged commercial activities beneath the two acres while retaining the green area above it.
However, the project never took off. It subsequently became part of the wider compensation claims Basajjabalaba has pursued against Government following the cancellation of several deals involving city properties and markets. Government has previously paid Haba Group compensation over terminated city market contracts, while Basajjabalaba has continued to contest outstanding amounts.
That history now places Basajjabalaba’s old City Square claim alongside Bulwadda’s fresh proposal, creating an unusual coincidence around one of Kampala’s most valuable and politically sensitive pieces of public land.
The City Square controversy is already attracting resistance from some political and civic actors, with Kampala Lord Mayor Ronald Balimwezo arguing that the square is public land held in trust for Ugandans and should remain protected.
Basajjabalaba, meanwhile, was not appearing before COSASE specifically to fight the Bulwadda proposal. His appearance was principally connected to COSASE’s investigation into theUGX 140 billion BoU guarantee and the recovery of the money, which the central bank says dates back to 2017.
But his account of City Square has nevertheless revived an old question, of who has previously dealt with Government over the property, on what terms, and what became of those agreements?
And as Bulwadda’s proposal moves through Government consultations, Basajjabalaba’s appearance before COSASE has unexpectedly brought the businessman’s own unfinished City Square chapter back into the national conversation. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
