Compensate Basajjabalaba over city abattoir, say MPs

Members of Parliament have demanded that Kampala Capital City Authority (KCCA) compensates city businessman Hassan Basajjabalaba, repossess the city abattoirs and have them managed by the City Abattoir Traders Development Association (CATDA).

The recommendation is contained in a report of the Committee on Presidential Affairs, which was presented to the House on, Thursday, 08 November 2018.

The Vice Chairperson of the Committee, Hon. Esther Anyakun, who presented the report, said that they investigated the management and operations of the city abattoirs following numerous complaints that there was non-remittance of Non-Tax Revenue to KCCA.

The committee report notes that KCCA failed to assure Basajjabalaba Hides and Skins (BHS) Company Limited, to whom they had sub-leased the land hosting the city abattoir, of vacant possession.

It further states that BHS paid the agreed premium and initial ground rent in accordance with the sub lease agreement but had not paid the outstanding balance of shs450 million, due to the failed assurance by KCCA, which the latter acknowledged.

“BHS Co. Ltd was indeed prevented from enjoying effective occupation by CATDA, who are currently in occupation… Being out of possession, BHS could definitely not be expected to comply with clause 5 of the sublease agreement, which required them to construct an ultra-modern slaughter and meat handling facility,” reads the committee report in part.

MPs expressed discontent over KCCA’s failure to reach their end of the bargain to sub-lease the city abattoir to Basajjabalaba Hides and Skins Company Limited for management for a period of 49 years, noting that the deal could have given a face-lift to the facility on Plot 1 and 3 on Old Port BeIl Road.

“BHS is justified to be compensated because they were sub-leased land but ended up being forced out of possession of the property. This could culminate into serous litigation issues,” said Hon. John Baptist Nambeshe (NRM, Mayinja County).

In September 2017, a similar motion was moved by then committee vice chairperson Hon. Susan Amero (NRM, Amuria), whose decision on the matter was deferred by Speaker Rebecca Kadaga, who advised the committee to study the then report of the Public Accounts Committee on the compensation to Habba Group of Companies Limited and Rhino Investments Ltd in the 2009/2010 financial year.

According to MPs at the time, both reports bore similar recommendations on the subject matter, which they noted would lead to contradictory findings and conclusions if not reconciled.