Court orders businessman Basajjabalaba to refund money to gov’t

Kampala, Uganda | THE INDEPENDENT | The Constitutional Court Judges have ordered city businessman Hassan Basajjabalaba to refund to government all the money that was illegally paid to him as compensation for losing tender to manage city markets and the Constitutional Square.

According to the majority decision of three Justices against two, the money to be refunded by Basajjabalaba and his six companies shall be ascertained by the High Court which will determine how much he is supposed to refund.

The majority Justices including Kenneth Kakuru, Elizabeth Musoke and Geoffrey Kiryabwire have ruled that the acts of Bank of Uganda and the then Finance Minister Syda Bbumba by issuing out guarantees and letters of comfort in favor of Basajjabalaba and his companies to four commercial banks was inconsistent with the constitution of Uganda.

The commercial banks are; United Bank of Africa, Orient Bank, Bank of Baroda and Tropical Bank.

These Judges have also gone ahead to declare that the contracts and leases given by the then defunct Kampala City Council –KCC were illegal having been executed without the Attorney General’s consent and that the KCC did not have the basis to lease out public green space like the Constitutional Square.

Although these two of  majority judges Musoke and Kiryabwire stop at making a declaration that the transactions were illegal, Justice Kenneth Kakuru in his Judgement attaches consequences to the banks for having been found in contravention of the constitution.

Kakuru has for stance directed the four commercial banks to pay a fine of USD Ten million shillings (Ugx 38.4 billion) to the central bank citing that the public was robbed of billion shillings which would have been used to procure medicine, educate the young children, pay teachers and soldiers, adding that it would have been used to build roads and hospitals.

Kakuru adds that this money shouldn’t have been lost should the commercial banks have excused themselves from this involvement.

Kakuru who led the panel says that the commercial banks individually provided Basajjabala with the key to the national treasury by providing him with the password to the safe adding that without them, this money would never have been lost.

However the other two Justices Cheborion Barishaki and Stephen Musota who have disagreed with the majority have dismissed the petition on grounds that it did not have merit because it reportedly contravened with parliament and some constitutional provisions.

Basajjabalaba was dragged to court by Legal Brains Trust in 2012 on allegations of using government officials, Bank of Uganda and four commercial banks to facilitate theft of shillings 142 billion from the Consolidated Fund.

Apart from Basajjabala, the petition was also filed against 19 other respondents.

They are: Basajjabalaba’s company Haba Group Limited, Victoria International, Trading Company, First Merchant International, Yudaya Uganda, Sheila Investments Limited, Bank of Uganda, Former Minister for Finance Sydah Bumba, Professor Khiddu Makubuya the then Attorney General, the defunct Kampala City Council, former Kampala town clerks Gordon Mwesigye James Ssegane, Ruth Kijjambu, her deputy William Tumwine, and four banks which paid out the money in question. They are:  United Bank of Africa, Orient Bank, Bank of Baroda and Tropical Bank.

The matter arises from between October 2010 and April 2011 when Basajjabalaba and his five companies using guarantees issued by the Central bank obtained USD 65 million (shs 238 billion) from the said commercial banks but failed to pay back the loan.

Basajjabalaba had been guaranteed the loans in question on allegations that he demanded government money in form of compensation to cater for losses caused to him as a result of cancellation of contracts he had signed with the defunct KCC to develop markets.

The businessman was reportedly meant to manage and develop markets including Shauriyako, Nakivubo, Nakawa and the Constitutional Square , but the same contract had allegedly been entered without the advice of the Attorney General.

Following this, a Committee was set up to verify Basajjabalaba’s claims against the government and it was found that his claim was worth 54.7 billion. However, Basajjabalaba was not satisfied with the money and he thus appealed to President Yoweri Museveni who also directed the then Attorney General Professor Khiddu Makubuya to handle the matter expeditiously.

Accordingly, Makubuya suggested that Basajjabalaba gets a compensation in the tune of 142.7 billion another one amounting to shillings 29.9 billion for Nakawa market yet it had never been part of those markets he had been contracted.

As a result, Legal Brains Trust challenged the procedure leading to the compensation citing that it was fraudulent and demanded that Basajjabalaba and 19 other respondents should refund the money in question.

The petitioner argued that the respondents conspired to commit corruption since the transactions were erroneously made.

Ssemakadde has told URN that they are going to appeal against this decision for the two majority Judges having failed to make any consequences to the four commercial banks that facilitated the unconstitutional transaction.

Basajjabalaba  and his companies were represented in court by a team of city lawyers led by Caleb Alaka who has not spoke to media after the decision.

*****
URN