The property contained on Plot 71 Nkrumah Road was leased in 2010 by then Kampala City Council to Securex Amenities (U) Limited whose directors were listed as Businessman Ephraim Ntaganda, Bob Kanaabi and Innocent Mutajabura for five years. The temporarily leased property then somehow became freehold ownership
The Auditor General John Muwanga has uncovered
irregularities involved in the sale of Kampala Capital City Dispensary.
The property contained on Plot 71 Nkrumah Road was
leased in 2010 by then Kampala City Council to Securex Amenities (U) Limited whose
directors were listed as Businessman Ephraim Ntaganda, Bob Kanaabi and Innocent
In 2011, KCC turned into an Authority and Erias
Lukwago was elected as City Lord Mayor. He soon demanded for investigations
into the sale, often clashing with the then Executive Director of KCCA Jenifer
Musisi who he accused of frustrating his efforts.
In 2017, Lukwago asked the Auditor General to
conduct forensic audit into the disposal of the property.
After more than two years, the Auditor General has
produced a report dated 25th September 2020. It was unveiled Monday by
Lukwago before press at City Hall.
According to the report, the Uganda Land Commission and
Kampala City Council-KCC did not comply with the requirements of section 59 of
the Local Governments Public Procurement and Disposal of Public Assets regulations
of 2006 which requires the involved government agency and the buyer to carry
out due diligence.
The report further indicates that KCC and Securex
did not obtain prior approval of the Minister to dispose of the property as
required by the Public PPDA Act 2013.
The Auditor General also noted in the report that Securex
did not fulfil terms of the lease agreement. He specifically pointed to the
promise by Securex to re-develop the premises into a modern commercial complex
and give one entire floor to the City Authority for the Dispensary.
Lukwago Expressed dismay how such a facility that
helped a number of City dwellers vanished through a sale he calls fraudulent.
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Luwago says they shall use the report to fight hard
to get the land back. According to the report, although the property was leased
for an initial period of 5 years in 2010 and an extension for 40 years in 2012,
the tittle was later changed into freehold.
The report shows that in 2012 Mahmud
Bharwani, Shaida Bharwani and Baiju Joshi Bharwani
acquired interests of the three directors Securex. The Bharwani family hence
took possession and later changed the tittle from leasehold to freehold.
The auditor general however notes that the Uganda
Land Commission did not avail disposal files for the land which he says creates
doubt whether the commission complied with its lease application process when
leasing the property to Securex.
Lukwago says they shall convene a meeting this week
to determine the next cause of action. He says they shall pursue the property
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Since the property was leased out, the dispensary
ceased to exist and yet no commercial complex has been set up.
This is not the first case where Ntaganda and
Kanaabi acquire City property and soon transfer to Bharwani.
In 2015, a parliament probe revealed that in 2010,
the two operating as directors of Prestigious
Apartments Limited acquired Plot 34A Kyadondo Road and 5C Mackinnon Road
belonging to Nakasero Primary School.
The company that had been incorporated
on August 5, 2010 expressed interest in the land and on October 29, 2010, less
than three months later, Uganda Land Commission, granted lease over the 0.657
hectares of land.
Days later, the duo transferred their 100% shares to Mahmud Bharwani and Ms Shaida Bharwani.