Businessman Basajjabalaba Demands Compensation Over Cancelled City Square Deal

Businessman Hassan Basajjabalaba has told Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) that he is seeking compensation from the Government over the cancellation of a deal to redevelop Kampala’s 2.5-acre City Square.

Basajjabalaba told the committee that his company won the tender to redevelop the prime city property in 2001 and subsequently paid Shs1.635 billion to the then Kampala City Council (KCC) as a premium.

He said the proposed development was designed to preserve the green space above the square while allowing commercial activities to be developed underneath.

According to Basajjabalaba, the agreement provided for a five-year lease commencing in 2002, with an option for a further 49 years.

However, he said the project was later halted, becoming part of his broader compensation claims against Government arising from the cancellation of various market and property deals.

Basajjabalaba said he was also surprised when he saw a letter from President Yoweri Kaguta Museveni directing the responsible authorities to undertake a study on a proposal concerning the development of City Square.

“I was also shocked to see the President’s letter asking for a study on the proposal to develop City Square land,” he said.

He said he was now waiting to see how the matter would be resolved, particularly if the same property is being considered for allocation to another developer.

“As of now, I am waiting to see whether one property will be given to two people,” Basajjabalaba said.

The COSASE Chairperson, Hon. Muwada Nkunyingi, questioned the circumstances under which Basajjabalaba acquired his company’s interest in the property and the basis of the claim.

Basajjabalaba, however, maintained that his company had a legitimate interest in the property and vowed to challenge any decision to allocate the same land to another developer.

The committee is examining the circumstances surrounding the City Square deal, including the original tender, payments made, the subsequent cancellation of the project and the competing interests in the property.

The post Businessman Basajjabalaba Demands Compensation Over Cancelled City Square Deal appeared first on Watchdog Uganda.