A probe by the sub-committee of the Parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has revealed that there were irregularities in the transfer of leasehold title of the Temangalo Tea Estate land in Mpigi District before the 366 acres were passed on to the National Social Security Fund (NSSF).
The COSASE sub-committee, chaired by Makindye East Member of Parliament, Ibrahim Kasozi, has been investigating the dubious repossession or fraudulent acquisition of properties left behind by the Asians who were expelled by President Idi Amin in 1972.
The sub-committee during its probe received a petition from Nazim Moosa, the director of Temangalo Tea Estate Limited, who claims that both businessman Amos Nzeyi and NSSF ignored the fact that there was a running lease on the land before transacting on the sale agreement.
The MPs after listening to Moosa, who had travelled from Canada in August 2019, summoned NSSF, Nzeyi, the Ministry of Lands, Abas Mawanda (who sold to Nzeyi) and the family of the late Daniel Saku Mugwanya who first got registered on a special certificate of title on 6th April, 1983.
The MPs, in their report seen by CEO East Africa Magazine and expected to be adopted by Parliament before the close of this term, state that their findings revealed that the late Mugwanya was erroneously issued a special certificate of title on a running lease and later on passed the land onto Mawanda.
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, the sub-committee recommended that Mawanda, Nzeyi and all officials in the Ministry of Land who were involved in this act be investigated for possible prosecution while NSSF 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.
Background
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.
Beyond the Balance Sheet: How Uganda's Top CFOs Are Forging Legacy Through Purpose, People, and Unwavering IntegrityDuring 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, 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.
However, the recommendations of the committee come after the Land Division of the High Court, on 28th November, 2019 cleared the NSSF and Nzeyi of any wrongdoing in the acquisition and ownership of 366 acres of land in Temangalo, Wakiso District.
Justice John Eudes Keitirima ruled that the case was stifled after a fixed length of time irrespective of the merits of the particulars of the suit filed in 2016 hence dismissing it on technicalities.
“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.
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.
