The Constitutional Court will on Tuesday give a ruling in a matter in which businessman Hassan Basajjabalaba was sued for allegedly using among others, Bank of Uganda(BoU) and four commercial banks, and government officials to facilitate the theft billions of shillings from the Consolidated Fund.
“Take notice that the above matter has been scheduled for judgment/Ruling March 24, 2020 at 9.30 am,” a notice by the court registrar issued on Friday reads in part.
Legal Brains Trust of Uganda sued Basajjabalaba alongside his five companies: Haba Group, Victoria International Trading Company, Sheila Investments, Yudaya International Limited and the First Merchant International Trading Company.
Other respondents in the case are government institutions and officers sued in their individual capacities.
These include Kampala City Council Authority (KCCA), Bank of Uganda, the Attorney General, Syda Bbumba, Prof Khiddu Makubuya, and Bou governor Emmanuel Tumusiime-Mutebile.
Others are United Bank of Africa, Orient Bank, Bank of Baroda, Tropical Bank, Mr James Ssegane, Ms Ruth Kijjambu, Mr Gordon Mwesigye and Mr Wilson Tumwine. Advertisement
During the June 11 and June 13, 2019 hearings, court heard that between January 2000 and December 2011 Mr Basajjabalaba and his companies entered into contracts with KCC to manage, own and redevelop Owino, Nakaero and Shauliyako markets, and the Constitutional Square, but the said contracts were entered into without the advice of the Attorney General.
Unrest on the part of the traders led to a cancellation of the contracts compelling the businessman to appeal to President Museveni who referred the matter to the Attorney General.
An interdepartmental evaluation committee which was set up to review Haba Group’s claims recommended Shs54.7b compensation, but the Attorney General then, Mr Khiddu Makubuya, proposed a payment of compensation in the region of Shs142.7b and another about Shs29.9b in respect of Nakawa market, which had never been part of the contracted markets.
Even when the audit firm KPMG concluded that Haba Group was not entitled to any compensation the Minister of Finance then, Ms Syda Bbumba, wrote to Bank of Uganda, directing it top help raise credit for Haba Group.
Bank of Uganda then issued various letters of comfort to Bank of Africa, Tropical Bank, Bank of Baroda, and Orient Bank, which Haba Group used to as security to get the loans, which it later defaulted on. The bank used the letters of comfort to recover the money from Bank of Uganda.
During the hearings, Legal Brains Trust prayed for orders directing Mr Basajjabalaba and his firms to return all the money they had been paid and commercial banks return money that they had been paid from the Consolidated Fund.
