City arcades row: Government calls for calm, to open escrow account for tenants

Government has intervened in the property dispute that has pitted Drake Lubega, Mansour Matovu a.k.a.Young on the one hand, and the late Charles Muhangi’s family interests on the other.

The row concerns ownership of Qualicel building and Nabukeera Plaza.

In a statement issued by Benny Namugwanya, the minister of state for Kampala, government said it was wrong for Lubega to close the building to tenants without giving any notice.

Government said it will continue deploying security personnel around the building to maintain order.

“We wish to condemn the unacceptable actions by some property owners who have been closing shopping arcades without any notice or even due regard to the livelihood of tenants operating in those premises,” noted the statement.

Namugwanya said government, through the Attorney General’s office shall negotiate a modality of opening up an escrow account, where all disputed or accruing rent for the period after February 2019, shall be paid and held therein until the final case is determined by courts of law.

“All affected tenants are hereby advised to remain calm and to cooperate with the landlord currently in possession of the property, as government finds a lasting solution to this stalemate,” noted the statement.

The statement said that all business owners in the shopping malls downtown Kampala and indeed elsewhere should proceed normally with their business operations.