How tenant became landlord in Sembabule Muslim land

In a new twist of events, a sitting tenant on the controversial piece of land owned by the Muslim community at Bukiragi Village, Sembabule District, has become the new landlord, Monitor has established.

The two-square mile land, which has in the last decade been a centre of controversy, is one of the registered properties of Uganda Muslim Supreme Council (UMSC).

Documents obtained by this publication indicate that the tenant – Enterprise Handling Services Ltd (EHSL), which has a 15-year running lease, is now the rightful owner of the land. EHSL is owned by businessman Albert Muganga.

Available records show that the UMSC top leadership led by Mufti Sheikh Shaban Mubajje first leased 300 acres of Bukiragi land to businessman Moses Amanya.

Later, Mr Muganga, through EHSL, secured a 15 -year-old lease on the same piece of land at Shs900m in 2013. On June 24, 2020, another businessman Arthur Kayanja also claimed he had bought the same land at Shs3.5 billion.

Both Muganga and Kayanja sued Mufti Mubajje and UMSC, with the former challenging the decision by UMSC to enter into an agreement with a third party [Kayanja ], without his consent while Mr Kayanja alleged that he never possessed the land he bought.

Mr Kayanja dragged Mufti Mubajje to the Commercial Court in Kampala, which ruled in his favour and directed UMSC to compensate him with Shs18 billion, including the costs and damages he had incurred in the case, whereas Mr Muganga filed the case at Masaka High Court to direct UMSC to implement the 2013 agreement.

Available records show that Mr Muganga, through EHSL, has a running lease (expiring in 2028 ) which was not considered by the UMSC before moving in to sell the same land and wanted court to set the sale of the land aside.

EHSL had secured the land through Sembabule Muslim District, and even when UMSC tried to contest its lease they later accepted their legal presence on the land and agreed to pay Shs600m to EHSL to vacate the land which UMSC failed to do.

Court in Masaka, however, later ruled on the matter and directed Mr Muganga to pay UMSC Shs900 million in order to acquire the land.

Mr Muganga later filed an application in the same court seeking to direct UMSC and the Commissioner of Land Registration to avail him the land title of the suit land –something a section of the Muslim community vehemently opposed. 

On December 2022, the High Court in Masaka directed Mr Muganga’s EHSL to pay UMSC an outstanding balance of the agreed contractual price of the suit land Shs620m at an interest rate of 24 percent per annum from 2017 until payment in full.

This publication has seen one of the correspondences where lawyers of EHSL wrote to UMSC to transfer the suit land in their client’s name, saying the High Court in Masaka under Civil Suit No.02 of 2020 had ordered so.

“As you are aware, judgment in the above-mentioned case was entered in December of 2022. In the judgment , the court ordered our client to pay the outstanding balance of the agreed contractual price of the suit land of Shs620m at interest of 24 percent per annum from 2017 until payment in full which computes to Shs1.3 billion ,” a letter dated April 25 2023 issued by lawyers of EHSL ,reads in part.

The letter further indicates that the money was already transferred onto UMSC bank account.

Efforts to get a comment from lawyers of EHSL to establish if UMSC has transferred the suit land title to their client's name failed as they could not be accessed on the known phone contacts by press time. Mr Muganga on Wednesday, however, confirmed that his lawyers wrote the letter, but UMSC never responded.

“It is true my lawyers wrote to them [UMSC], but they were unresponsive. I will consult the lawyers on what to do next,” he said.

Mr Muganga also said he is currently the rightful owner of the land comprised in LRV 3693 Folio 12 Ranch 31A land at Sembabule .

“Court pronounced itself on the matter and I am not aware that there is any Appeal,” he said

UMSC spokesperson Ashiraf Zziwa has on two occasions declined to comment on the developments.

He insisted that he needs to first consult his superiors.

“Please give more time to consult, I will get back to you,” he said on October 25 and he had not got back to us by press time.

Another claimant

Meanwhile UMSC allegedly sold off the same piece of land to another businessman Justus Kyabahwa at Shs3.5 billion. However, the latter found the land encumbered and could not take possession. As a result, he asked for a refund of his cash, with interest, if UMSC could not secure a vacant possession of the property.

After years of fruitless engagements, Mr Kyabahwa and his business partner went to court, which ruled in his favour ordered a reimbursement of his money with a 12 percent per annum interest from the date of judgment.

Last year, Mr Kyabahwa returned to court after UMSC failed to refund his money, which has since increased to more than Shs19 billion.

He asked court to auction the mortgages, all prime properties of Muslims including the National Mosque in Kampala and other regional cities.

The Commercial Division of the High Court in Kampala on November 16, 2023 issued a warrant of attachment and sale of immovable property order, authorising Louiza Auctioneers, which advertised the properties in the media, to auction them by December 21, 2023 should UMSC fail to settle the Shs19 billion debt.

However, the intervention of President Museveni, put a halt on attaching of the Muslims properties. Monitor has learnt that Mr Kyabahwa is currently pushing for compensation for costs and damages. 

Mr Abdul Nasir Mugisha , one of the Muslims who dragged UMSC to court for illegally disposing off the Sembabule land, yesterday said they were surprised by the ruling by Justice Victoria Nakintu Katamba describing it as laughable .

“Her ruling never considered evidence both parties produced before court and it is really laughable. The claim of an agreed contractual price of Shs900 millioj was made by the Judge because the plaintiff [ EHSL ] never claimed to have purchased the suit land for Shs900 million.”

According to Mr Mugisha, the figure of Shs900m only surfaced in the pleadings when EHSL claimed it had arranged this sum to buy the plots of land for exchange with UMSC under the “illegal exchange agreement”

“EHSL in its amended plaint did not seek to be declared a purchaser. Clearly, the trial judge delivered a judgment in disregard of the reliefs and prayers of all parties and this is the reason we appealed,” he said.

The developments come at a time when Masaka High Court again deferred the case in which a group of Muslims also dragged UMSC leaders to court over what they termed as illegal sale of Sembabule Muslim land.

While appearing before Masaka High Court deputy registrar Roy Karungi on September 17 , the parties were informed that the presiding judge was away further adjourning the matter to March,4 2025.

WRANGLES

Elected in December 2000, Mufti Shaban Mubajje’s 24- year tenure has been characterised by endless accusations of engaging in dubious land transactions, which have cost the Muslim community some of its prime properties across the country. Over the years, a section of Muslims have parted ways with Mufti Mubajje and formed a parallel administration at Kibuli Hill headed by Supreme Mufti Muhammad Shaban Galabuzi while another group last December declared his former deputy Abdullah Ssemambo as acting Mufti.