Basajja buys Nakasero Market
SPOTLIGHT<br><br>For a paltry sh248m, Kampala City Council has sold off Kampala’s oldest market, Nakasero, to Sheila Investments Limited, owned by business tycoon Hassan Basajjabalaba,
SPOTLIGHT
For a paltry sh248m, Kampala City Council has sold off Kampala’s oldest market, Nakasero, to Sheila Investments Limited, owned by business tycoon Hassan Basajjabalaba, reports Emmy Allio.
The silent sale, shrouded with allegations of irregularities, has sparked off outrage among city councillors and vendors.
The city authorities had valued the market at sh2b, which Basajjabalaba was to pay as premium for leasing it for 49 years.
But the tycoon claimed he had made developments at the market worth sh1.9b. He constructed a block of lock-up shops at the back of the market and tarmacked the parking yard. Consequently, KCC allowed him to pay the difference.
In a letter dated December 29, 2006, the deputy town clerk, William Tumwine, effected the swap.
“The acting director of finance is authorised to swap the construction and leasing accounts, receive the outstanding balances and complete the necessary accounting entries to complete the transaction,†the letter read.
Last week, Basajjabalaba paid KCC sh104m in ground rent and sh144m as land premium to seal the deal.
A day after the payments were made, Basajjabalaba’s lawyers wrote to KCC demanding the title deeds for the plots. The lawyers cited the December 29, 2006 letter as proof of Basajjabala’s ownership of the market.
A senior government valuer, however, told The New Vision that the real value of Nakasero Market is about sh10b. City councillors have said they will petition the President and the Speaker of Parliament over the deal.
Under a market re-development plan, former mayor John Ssebaana Kizito had divided the market into four plots, which were to be leased to different developers. But the KCC executive ignored the proposal and allocated three of the four plots to Sheila Investments.
A letter dated December 28, 2006 of the acting deputy director of finance, Basil Bataringaya, indicates that KCC leased three pieces of land to Basajjabalaba for 49 years.
Sheila Investment Limited was contracted in 2002 to manage Nakasero Market on behalf of the Kampala City Council. The contract involved rent collection and maintenance of the structures.
The company was to submit sh25m per month to KCC in revenue collection. But by the end of last year, it was in arrears of over sh435m in unremitted funds.
Sources said the contract of managing the market did not include the construction of new structures. However, Basajjabalaba embarked on building a block of lock-up shops. Vendors claim they footed the construction bill and contributed between sh2m and sh4m each.
Kampala mayor Nasser Sebaggala confirmed the lease but blamed his predecessor for the mess.
“I found the process was on and I tried in vain to undo it. I only succeeded in rescuing one of the four plots, which is now being controlled by the vendors.â€
The Minister of Local Government, Maj. Gen. Kahinda Otafiire, said he was not opposed to the sale provided it was carried out properly.
“This is to reiterate my no-objection to the proposed development of Nakasero Market. If the executive committee finds the latter option the most profitable way to serve council interests, you should go ahead and execute council proposals,†Otafiire wrote in a letter dated January 8, 2007.
Sources said the sale of the market was contrary to the recommendations made by a commission of inquiry, set up by the Ministry of
Local Government last year. The commission, headed by Prof. James Katoroobo, recommended an independent valuer in case KCC wanted to sell or lease any land.
For a paltry sh248m, Kampala City Council has sold off Kampala’s oldest market, Nakasero, to Sheila Investments Limited, owned by business tycoon Hassan Basajjabalaba, reports Emmy Allio.
The silent sale, shrouded with allegations of irregularities, has sparked off outrage among city councillors and vendors.
The city authorities had valued the market at sh2b, which Basajjabalaba was to pay as premium for leasing it for 49 years.
But the tycoon claimed he had made developments at the market worth sh1.9b. He constructed a block of lock-up shops at the back of the market and tarmacked the parking yard. Consequently, KCC allowed him to pay the difference.
In a letter dated December 29, 2006, the deputy town clerk, William Tumwine, effected the swap.
“The acting director of finance is authorised to swap the construction and leasing accounts, receive the outstanding balances and complete the necessary accounting entries to complete the transaction,†the letter read.
Last week, Basajjabalaba paid KCC sh104m in ground rent and sh144m as land premium to seal the deal.
A day after the payments were made, Basajjabalaba’s lawyers wrote to KCC demanding the title deeds for the plots. The lawyers cited the December 29, 2006 letter as proof of Basajjabala’s ownership of the market.
A senior government valuer, however, told The New Vision that the real value of Nakasero Market is about sh10b. City councillors have said they will petition the President and the Speaker of Parliament over the deal.
Under a market re-development plan, former mayor John Ssebaana Kizito had divided the market into four plots, which were to be leased to different developers. But the KCC executive ignored the proposal and allocated three of the four plots to Sheila Investments.
A letter dated December 28, 2006 of the acting deputy director of finance, Basil Bataringaya, indicates that KCC leased three pieces of land to Basajjabalaba for 49 years.
Sheila Investment Limited was contracted in 2002 to manage Nakasero Market on behalf of the Kampala City Council. The contract involved rent collection and maintenance of the structures.
The company was to submit sh25m per month to KCC in revenue collection. But by the end of last year, it was in arrears of over sh435m in unremitted funds.
Sources said the contract of managing the market did not include the construction of new structures. However, Basajjabalaba embarked on building a block of lock-up shops. Vendors claim they footed the construction bill and contributed between sh2m and sh4m each.
Kampala mayor Nasser Sebaggala confirmed the lease but blamed his predecessor for the mess.
“I found the process was on and I tried in vain to undo it. I only succeeded in rescuing one of the four plots, which is now being controlled by the vendors.â€
The Minister of Local Government, Maj. Gen. Kahinda Otafiire, said he was not opposed to the sale provided it was carried out properly.
“This is to reiterate my no-objection to the proposed development of Nakasero Market. If the executive committee finds the latter option the most profitable way to serve council interests, you should go ahead and execute council proposals,†Otafiire wrote in a letter dated January 8, 2007.
Sources said the sale of the market was contrary to the recommendations made by a commission of inquiry, set up by the Ministry of
Local Government last year. The commission, headed by Prof. James Katoroobo, recommended an independent valuer in case KCC wanted to sell or lease any land.