Governor Mutebile named in UBC land saga

Jan 12, 2012

Bank of Uganda governor Tumusiime Mutebile has been summoned by Parliament over UBC land sale.

By Noah Jagwe

The Central Bank governor Tumusiime Mutebile has been summoned by the parliamentary committee on Statutory Authority and State Enterprises after he was named in the sale off of Uganda Broadcasting Corporation (UBC) land.

UBC acting managing director Paul Kihika told Parliament on Wednesday that Mutebile guaranteed HABA Group Ltd money to the tune of $10m (about sh25b) to pay for 23 acres of UBC land in Bugolobi. 

The sale was done by UBC top managers between January and February 2011. 

“I saw the letter that was not copied to anyone by the governor Bank of Uganda guaranteeing the payment,”Kihika told the committee.

Kihika said UBC was ready to pay back the money to HABA Group Ltd, owned by city businessman Hassan Basajjabalaba because the piece of land was strategically positioned and was resourceful to the corporation and the people of Uganda.

He added that the governor also advised the corporation to open a new bank account at Orient Bank in Kampala where sh1.7b was deposited.

Committee member, Makindye East MP, John Simbwa criticized Mutebile’s actions and proposed that he be summoned to explain his interest in the Basajjabalaba saga.

“It is shocking for the governor to do this without consulting the minister of finance and permanent secretaries. Mutebile knows about the land wrangles in UBC and should come out and put everything right,” Simbwa’s tone sounded stern.

Simbwa said the committee will decide what to do if Mutebile does not appear.

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