The Uganda Muslim Supreme Council (UMSC) property atop Old Kampala Hill including Gaddafi National Mosque, previously on the brink of an auction due to debt exceeding sh18 billion owed to businessman Justus Kyabahwa, has been excluded from the list of assets set for sale.
Louiza Auctioneers and Court Bailiffs conveyed, in a document addressed to the Deputy Registrar of the High Court Commercial Division, that the property marked as Lease Hold Register Volume 2771 Folio 2, Old Kampala Plot 23-25, is contentious and encumbered by a caveat.
“We have learnt that the property comprised in Lease Hold Register Volume 2771 Folio 2, OId Kampala Plot 23-25 is a subject of a caveat and contentious. This is to humbly inform the Court that the above property comprised in Lease Hold Register Volume 2771Folio 2, Old Kampala Plot, 23-25 hereby ceases to be part of the properties under attachment and execution, and the same shall not be auctioned,” the letter reads in part.
The bailiffs notified potential bidders who had shown interest in acquiring this property that it would not be available for sale, inviting them to retract any submitted bids. This parcel of land encompasses significant structures, including the National Muslim Mosque and the Muslim community headquarters, along with other properties situated on Old Kampala Hill.
This crisis stems from a land transaction between UMSC and Justus Kyabahwa, which encountered complications. UMSC sold a two-square-mile tract of land to Kyabahwa for 3.584 billion Shillings, intending to transfer ownership within 150 days. However, the land had an existing 15-year lease, leading to the failure to fulfil the transfer or refund the money, resulting in the accumulation of the 19-billion-shilling debt.
The clause of paying interest, regarded as contradictory to Islamic teachings, was allegedly introduced by the former Secretary-General, Hajji Ramathan Mugalu, as per UMSC officials. Mugalu, however, disavowed any responsibility, asserting his actions were in line with UMSC directives.
In a bid to recover his funds, Kyabahwa pursued legal action, ultimately leading to UMSC’s defeat in court and the directive to settle the 19-billion-shilling debt within 30 days.
Concurrently, eight properties, including the Old Kampala Hill assets, faced attachment, pending auction if the debt was not cleared within the stipulated timeframe. While the Old Kampala properties have been excluded from auction, the bailiffs emphasized that the remaining properties, as advertised on November 21, 2023, remain earmarked for auction if the debt remains unpaid.
“We further Notify the General Public that the rest of the properties remain for auction on the due date as reserved in the newspaper advert dated 2lst, November 2023,” concludes the letter.
The entity behind placing the caveat on the mentioned property remains unidentified. Generally, parties with vested interests, such as the owner, co-owner, Kibanja holder, or other stakeholders, typically initiate caveats. This serves as an official notice alerting the public to a specific interest or concern related to the land or property.
A city lawyer, speaking on the condition of anonymity due to the sensitive nature of the issue, shed light on this matter. They noted that no formal transaction can be documented on the Land Title until the caveat is removed. Additionally, the lawyer noted that in certain circumstances, the court might authorize the bailiff to intervene, considering the circumstances surrounding the placement of the caveat.
“The appropriate course of action, as the lawyer stated, is for a bailiff to remove the property with a caveat from the attachment list. Properties with caveats could present a challenge for the bailiff in facilitating a sale. Potential buyers might be hesitant to purchase a property with a caveat due to the presence of pending interests, creating a potential disruption in the sales process,” the lawyer noted.
The controversy over the proposed sale of Muslim property has sparked discontent within the Muslim community, prompting the Association of Muslim Lawyers to file a suit against the Mufti of Uganda, Sheikh Shaban Ramadhan Mubaje, and Justus Kyabahwa, alleging fraudulent dealings.
The lawsuit, lodged at the civil division of the High Court in Kampala, contends that the sale of land in the Ssembabule district was mired in corruption, risking the auctioning of various Muslim properties, including the UMSC headquarters at Old Kampala.
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