After the Government failed to pay Uganda Railways Corporation for Nsambya land for over 10 years, the Chief Government Valuer has now put the price of the 57 acres to sh246b different from the original sh69.5b.

According to URC head of commercial operations, Stephen Wakasenza, the cost of the land has increased from sh69.5b which was originally stated to sh246b in a recent reevaluation of the land by the Chief Government Valuer.

"When we wrote to the Ministry of Finance demanding the payment, the ministry demanded a revaluation by the Chief Government Valuer which we did and it put the cost at shillings246b. We have not been paid up to now,” Wakasenza told New Vision.

The Government 2010 took over the land and allocated it to 10 private investors, including Mestil Hotel owner Janet Kobusingye, Charles Kimera, Islamic University, House of Dawda, CTM Uganda Ltd, Access Uganda Ltd, and Yas Company.

Others are Alumus Properties, M/S Fairplay Services Ltd, and Kampala International University.

The land that stretches from the Mukwano factory up to Mestil Hotel was allocated to investors in compensation for investors who had erroneously been allocated the Naguru-Nakawa estate land.

While investigating the matter last year, the Parliamentary Committee on Commissions State Authorities and State Enterprises heard that the land was allocated following a presidential and Cabinet directive. However, it was agreed that the finance ministry pays URC for the land.

While appearing before the committee, then URC managing director Stanley Sendegeya told the Committee chaired by Nakawa MP Joel Ssenyonyi that although they gave out the land to the Uganda Land Commission, they had not been paid.

"For us, URC we were promised to be paid in writing by the minister of finance by then and we have been following up on payment from that time to date. The money has not been paid and the money we're demanding is sh69.5b... We were directed to give away the land, the acres you mentioned, they have the minister's promise according to this directive surrender this land that we're going to pay you so much money as stated on record..." Sendegeya said.

Privatisation state minister Evelyn Anita, while responding to the COSASE report, promised that the finance ministry would pay the money, but to date, no payment has been made according to officials from URC.

In a Treasury memorandum to Parliament on the actions taken by the Government on the COSASE report, the MPs expressed concern that the corporation may never be compensated for its land.

“URC has continuously engaged the Ministry of Finance to pay this outstanding debt for Nsambya land. The Accountant General requested a valuation report. The Chief Government Valuer is to provide a valuation report to the Accountant General to enable processing of the compensation,” the report states.