Parliament Committee Report Clashes with Court decision on NSSF Ownership of Temangalo land

Findings and recommendations embedded in a report of a probe sub-committee of Parliament have called for talks between the National Social Security Fund (NSSF) and Temangalo Tea Estates in order to end the long standing saga over the Temangalo land.

But, the report seen by CEO East Africa Magazine is likely to conflict with the decision of the Land Division of the High Court in November 2019 clearing the NSSF and businessman Amos Nzeyi over their transactions as the former bought 366 acres of land from the later at UGX28 per acre.

The sub-committee of the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has concluded that Abas Mawanda who sold the land to Nzeyi before he later passed it on to NSSF, had acquired a special certificate of title on a leasehold that was still running.

Mawanda was registered on a special certificate of title by the Ministry of Lands on 6^th April, 1983 to take ownership of land left behind at Temangalo in Mpigi District from Asians who were running a tea estate by 1972 when then President Idi Amin expelled them.

Now, the recommendations of the sun-committee in a report before Parliament for debate and approval, is in favour of Canadian-based Nazim Moosa the Director Temangalo Tea Estate who lost claim on the land in the High Court ruling on 28^th November 2019. 

The ruling of Justice John Eudes Keitirima came about three months after Moosa, Nzeyi and NSSF had testified before the COSASE sub-committee in disregard of the ongoing court battle.

Justice Keitirima while ruling on a suit filed by Moosa held that; since the plaintiff/respondent (Temangalo Tea Estate) cause of action rose way back in 1993 and instead filed this suit in 2016, which is 23 years after, they are barred by limitation as the suit was instituted outside the statutory limitation as provided for under Section of the Limitation Act,” the judge ruled.

Also in between Justice Keitirima’s ruling and the report of the sub-committee, another Court decision was delivered indicating that Parliament was free to carry out the probe on matters that originated from the report of the Auditor General in order to ensure proper accountability.

Section 5 of the Limitation Act provides that no action shall be brought by any person to recover any land after the expiration of twelve years from the date on which the right of action accrued to him or her or, if it first accrued to some person through whom he or she claims to that person.

Property tycoons, Muhammed Allibhai, Minex Karia and Pradip Karia had petitioned court seeking orders to stop Parliament from probing into their dealings in expropriated properties whose repossession was being questioned.

Justice Musa Ssekana in a 7th October 2020 ruling held that; “the nature of the remedies sought are intended to muzzle the Parliamentary Committee (COSASE) sub-committee from exercising its Constitutional mandate and this would be contrary to the principle of Separation of Powers of ensuring public accountability under the system of checks and balances”

MPs probe findings

Chaired by Makindye East MP Ibrahim Kasozi, the COSASE sub-committee states in its report that there were irregularities in the transfer of Temangalo land title from leasehold to a special certificate of title.

The MPs in their report which is expected to be adopted by Parliament before the close of this term, state that their findings revealed that Mr Mawanda was issued a special certificate of title on a running lease without the involvement of the Departed Asians Properties Custodian Board (DAPCB) a government entity managing those properties on behalf of the Government.

Based on its findings, the probe sub-committee has recommended that the government through its Constitutional obligation hands over the disputed land to the former proprietors because the Ministry of Land issued a special title before it was dealt in by the Minister responsible for Finance as provided for in the Expropriated Properties Act.  

Because the MPs noted in the report that there is evidence that Temangalo Tea Estate has in vain tried on a number of occasions to apply for repossession by 1993 as provided for by the law, it is their recommendation that the NSSF initiates talks with them and reach a settlement.

“The NSSF should negotiate with the legitimate owners of the same within 45 days (after adoption of the report) for a mutual settlement and a progress report brought to the House within the stated time” the report reads in part.

Regarding the alleged fraudulent transactions, it is the recommendation of the sub-committee that Mawanda, Nzeyi and all officials in the Ministry of Land who were involved in this act be investigated for possible prosecution while NSSF should also sue Nzeyi.

“NSSF should proceed against Amos Nzeyi for loss and damage through any means provided for by the law, for having sold them land on the basis of falsified documents aided by some unscrupulous officials in the Ministry of Lands” the report recommends.

NSSF bought the land from Nzeyi at a cost of UGX28m per acre in 2009 and has been advancing plans to establish a real estate for affordable accommodation houses.

During the probe in 2019, officials from the Ministry of Lands failed to explain how a running lease on land was cancelled before Abbas Mawanda was registered and issued with a special certificate of title in 1988. The cancelled leasehold title for Temangalo Tea Estate was supposed to run until 2024.

Appearing before the sub-committee in August 2019,  Mr Robert Opio, the acting commissioner for Land Registration, failed to explain how the tea estate’s lease was cancelled before Mawanda was registered as owner of the land.

Opio revealed then that records indicate that the lease was cancelled on October 18, 1988, and a re-entry was registered under instrument number 237290 but he failed to produce the supporting documents.

Appearing before the sub-committee, Nzeyi, who said he and Moosa are in court over the same matter, told the MPs that before buying land, he made due diligence through the services of Sebalu & Lule Advocates because they had knowledge about land in Buganda.

He said the law firm, after conducting a search in the Land Registry found that there were no encumbrances on the Mailo land offered to him by Mawanda before making the transaction at the Kampala Sheraton Hotel.
NSSF on the other hand explained that they hired the services of JB Byamugisha Advocates to conduct a search in the land registry to find out whether there were no encumbrances on the title that Nzeyi had presented during the negotiations.

“On February 2008, the Fund (NSSF) obtained approval of the Minister of Finance for the purchase of land for real estate development. M/S J B Byamugisha Advocates conducted a search on the land. The search reports indicated that there were no encumbrances or lease interests on the land,” read part of a written submission by NSSF.

NSSF revealed that they bought the land from Nzeyi consisting of six separate titles for; Block 296 Plot 12; Block 296 plot 16; Block 296 plot 20; and, Block 296 plot 21.