By Mulengera Reporters
On Thursday, the Minister of State for Lands, Sam Mayanja, sharply criticised the Uganda Investment Authority (UIA) for their handling of a contentious land dispute between two companies within the Namanve Industrial Park. The dispute centers on land originally allocated to Iran Uganda Trade Promotions Service Ltd in 2014 but later reallocated to SABA GIFCO Ltd in 2022, despite the President’s written directive and legal stipulations favoring Iran Uganda.
The minister, visibly frustrated, reprimanded UIA for disregarding the Land Act and a presidential directive that should have ensured the extension of Iran Uganda’s lease. According to Mayanja, the actions of the UIA have violated both legal and ethical responsibilities, with significant consequences for both the original and the new investors.
BACKGROUND OF THE DISPUTE
Iran Uganda, which first arrived in Uganda in 1998 with the aim of establishing their operations, faced government delays that stalled their prompt commencement. After finally being allocated land in the Namanve Industrial Park in 2014, the company expected to proceed with its investment plans. However, UIA reassigned the land to SABA GIFCO Ltd in 2022 on grounds that Iran Uganda’s lease had expired—a move that ignored a directive by President Museveni to extend the lease.
Minister Mayanja, citing Section 59 of the Land Act, argued that UIA had no legal basis to reallocate the land. “Section 59 of the Land Act says when land is already owned by another person or authority, it is not available for extension to another person,” he emphasized. “If that happens, the law says that transaction is void.”
The minister further pointed out that even if Iran Uganda’s lease had expired, the Land Act mandates UIA to renew it. “UIA, you are flouting the law and you are not doing your work,” he said, accusing the Authority of disregarding its role in facilitating investment and economic growth in Uganda. He also questioned the Authority’s decision to disregard the presidential directive, as well as the advice of the Permanent Secretary of the Ministry of Finance.
Mayanja criticised UIA’s failure to support Iran Uganda, who had arrived two decades prior and faced delays in starting their operations. “You can imagine how much investment they would have made by now if they had been allowed to start,” he noted, pointing to the missed economic opportunities caused by the UIA’s ineptness. He further expressed sympathy for both Iran Uganda and SABA GIFCO as they have both been caught up in this administrative anomaly by UIA but clarified that the law should prevail.
“Iran Investment has been badly handled and I sympathize with them,” he said. “I also sympathize with SABA GIFCO because they are also investors, but the law must take its course. The law is clear that those who were given the initial lease must continue with that lease.”
NULLIFYING THE REALLOCATION
In a move to rectify the situation, Minister Mayanja declared that UIA’s reallocation of the land to SABA GIFCO is void, based on legal principles. He affirmed that UIA’s limited authority to extend leases does not grant it permission to sidestep the laws governing land leases in Uganda. “This land was not available for them to give to another person. Therefore, that transaction was void,” he concluded.
The minister called upon UIA to comply with the presidential directive immediately, stressing that renewing the lease for Iran Uganda is not an optional courtesy but a legal obligation. “I would like to reiterate the directive of HE the president that UIA immediately engage the process of extending this lease. It is not a courtesy or favour, it is a question of law.” (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at [email protected]).
