Basajjabalaba Claims City Square Amidst Redevelopment Debate

Businessman Hassan Basajjabalaba has informed Members of Parliament that his company, HABA Group, has a claim on the City Square (also known as Constitutional Square) in Kampala. Basajjabalaba appeared before the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) to discuss his compensation demands related to a previously cancelled redevelopment agreement for the 2.5-acre property.

According to Basajjabalaba, HABA Group won a tender to redevelop City Square in 2001 and paid a premium of Shs1.6 billion to the then Kampala City Council (KCC). He stated that the original plan involved preserving the green space above while developing commercial activities underground. The proposed agreement included a five-year lease starting in 2002, with an option for an additional 49 years.

However, the deal was halted, and Basajjabalaba indicated that this cancellation is part of broader compensation claims against the government for various terminated market and property arrangements. He expressed surprise at a recent presidential directive for a study on developing City Square, questioning how the space could be allocated to multiple parties.

The COSASE committee, chaired by Hon. Muwada Nkunyingi, is also investigating a Shs140 billion Bank of Uganda (BOU) guarantee issued to HABA Group, stemming from the government’s takeover of certain market and City Square management agreements.

Basajjabalaba clarified that the Shs140 billion guarantee was not fully disbursed and that commercial banks were issued guarantees totaling Shs168.8 billion, with Shs87.4 billion still outstanding. He presented options for resolution, including receiving the outstanding balance of Shs63.2 billion and surrendering his claims on City Square and other properties like Nakasero Market sublease, or the government refunding his payments if properties are returned.

The committee has requested all relevant documentation from HABA Group and plans further meetings with the Ministry of Finance and the Bank of Uganda before reaching a conclusion.

Source: Parliament of Uganda