Businessman Hassan Basajjabalaba has told Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) that he is seeking compensation from Government over the cancellation of a deal to redevelop Kampala’s 2.5-acre City Square.
Basajjabalaba told the committee that his company won the tender to redevelop the prime property in 2001 and paid Shs1.635 billion to the then Kampala City Council (KCC) as a premium.
Under the proposed arrangement, he said, the redevelopment would have preserved the green space on top of the square while allowing commercial activities to be developed below it.
He said the agreement provided for a five-year lease beginning in 2002, with an option for a further 49 years.
However, Basajjabalaba said the project was later halted, becoming part of his wider compensation claims against Government over cancelled market and property deals.
He told MPs that he was surprised to see a letter from President Yoweri Museveni requesting a study on the proposed development of the City Square land.
“I too was shocked to see the President’s letter asking for a study on the proposal to develop City Square land,” Basajjabalaba told the committee.
He said he was now waiting to see whether the Government would attempt to allocate the same property to another developer.
“As for now, I am waiting to see if one property will be given to two people,” he said.
COSASE chairperson Muwada Nkunyingi questioned the circumstances under which Basajjabalaba acquired interests in the land.
Basajjabalaba, however, maintained his claim and vowed to challenge any decision to allocate the property to another developer.
The City Square dispute forms part of a wider compensation battle between Basajjabalaba and Government involving cancelled market and property arrangements.
