Basajjabalaba Claims Ownership of City Square Amidst Redevelopment Debate

Businessman Hassan Basajjabalaba has declared his stake in Kampala’s City Square, also known as Constitutional Square, a move that comes amidst ongoing discussions about the land’s potential allocation to a private developer. Basajjabalaba informed members of the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) that his company, HABA Group, was awarded the tender to redevelop the 2.5-acre plot in 2001 and subsequently paid a premium of Shs1.6 billion to the then Kampala City Council (KCC).

He presented documentation, including a receipt and offer letter, to support his claim. Basajjabalaba explained that the original redevelopment plan involved preserving the green space above ground while developing commercial facilities underneath. The agreement included a five-year lease starting in 2002, with an option to extend for an additional 49 years.

However, the deal was later halted, and it now forms part of his broader compensation demands against the government for various cancelled market and property arrangements. Basajjabalaba expressed surprise at recent communications, including a letter from the President, suggesting a study into developing the City Square land, questioning how the same property could be considered for multiple parties.

The COSASE committee is also investigating a Shs140 billion Bank of Uganda (BOU) guarantee issued to HABA Group, stemming from the government’s takeover of public markets and the City Square. While the committee chair noted BOU’s demand for the funds, Basajjabalaba clarified that the guarantee was not fully disbursed and that a significant amount remains outstanding across various guarantees.

Basajjabalaba outlined potential resolutions, including receiving outstanding payments, having his interest in City Square recognized, or the government returning the leased properties with him refunding payments made. Alternatively, he suggested a property valuation and surrender of assets not rightfully his. The committee has requested all relevant documents and plans to convene further meetings with the Ministry of Finance and the Bank of Uganda to reach a conclusion.

Source: Parliament of Uganda