Obote foundation, KCCA in sh135m ground rent row

By Andante Okanya

The Milton Obote Foundation (MOF) and Kampala Capital City Authority (KCCA) are locked in a ground rent row of sh135.8m for Uganda House situated on the prime plot 10 Kampala road.

According to documents filed at the High Court in Kampala, MOF wants court to block any attempts by KCCA, which it claims has threatened to forcefully recover the money.

Established in 1963, MOF deals in real estate, owns prime properties, and is the financial arm of the opposition Uganda People’s Congress party(UPC).The party headquarters are situated on Uganda House.

Through Kwesigabo, Bamwine, and Walubiri Advocates, they are seeking a declaration that that they are not indebted to KCCA, as purported.

“The plaintiff contends that it has at all material times, paid all the rates due to and demanded by the defendant. The defendant’s unfair and illegal demands have caused loss and damage to the plaintiff,” MOF states in the suit.

MOF states that KCCA has threatened to obtain a warrant for the sale of the property to recover the purported debt.

Court documents show that on July 9, 2009, MOF was served a property rates demand note of sh38.9m for the year 2008/2009. The note stated that MOF had a balance of sh3.8m, which was subsequently paid.

Additionally, documents show that on December 14, 2010, MOF was served a property rates demand note of sh42.7m. It included the sh3.8m, which MOF claims was erroneous. The foundation however claims it settled the bill.

Documents further indicate that last year on June 13, MOF was served with a letter demanding arrears amounting to sh11.6m.

In a letter dated June 18, 2012, MOF wrote to KCCA, explaining that it was not indebted, as claimed. Attached to the letter was, was a schedule to show details of the payments made.

In January this year, MOF received a demand note of sh46.5m for the year 2011/2012. MOF claims it had already paid the amount, prompting it to write to KCCA in a letter dated January 8, 2013, asking for an invoice for 2012/2013.

Documents also show that in a letter to MOF dated February 25, 2013, KCCA demanded sh169m, including a 2% monthly surcharge, and threatened enforcement.

But MOF responded in a letter dated March 13, 2013, and disputed any arrears, and enclosed cheques totaling sh42.7m for the property rates 2012/2013.

MOF claims KCCA declined the cheques, and that the foundation was given bank payment advice forms, with which it paid the sh42.7m.

KCCA is yet to respond to the claims. A hearing date is yet to be scheduled.