Bank of Uganda Governor, Emmanuel Tumusiime Mutebile has been named in the illegal sale of Uganda Broadcasting Corporation—UBC land to embattled businessman Hassan Basajjabalaba.
Members of Parliament on Wednesday heard that Mutebile in November 2010 guaranteed Basajjabalaba, up to US$10 million, an equivalent 25 billion shillings, to allow him acquire the UBC land in Bugolobi.
The land in question is located on Plot 112 Faraday road in Bugolobi a Kampala suburb.
The MPs were shocked by the letter, written on an official Bank of Uganda headed paper and referenced “Credit Facility of 10 million US Dollars to HABA Group (U) Limited. In the letter, Mutebile was directing the Managing Director of the Tropical Bank (U) Limited to advance Basajjabalaba the money because the central bank had his money totaling up to 96 billion shillings. The BoU governor was confirming that the businessman’s money was going to be paid to him within the next one year.
The MPs also learnt that the money guaranteed was part of the cash that was used to pay about 4.9 billion shillings for the UBC land, but only after the Corporation had sued demanding to be paid its debt that Basajjabalaba had defaulted on.
The MPs on the Commissions, State Authorities and State Enterprises (COSASE) grilled top management of UBC, led by their Managing Director Paul Kihika, for a whole day about their role in the sale of several acres of land belonging to the national broadcaster.
Kihika revealed to the members that a number of pieces of land were sold out to prominent politicians who did not pay for them. The politicians named include Mary Karooro Okurut, the minister of Information and National Guidance under whom UBC falls and the former Woman MP for Kabarole, Margaret Muhanga. The two prominent politicians were leased two acres at UGX957 million but did not pay a cent and yet shortly after sold their interest in the land to another company known as the Sino East Africa Center.
The Chairman of the committee, Eng. Patrick Amuriat, together with Tororo Municipality MP, Sanjay Tanna, asked Kihika what action he had taken since December when the offer for the land ended.
Amuriat, the Kumi County MP told the UBC team that they were going to have many meetings with them until they get to the bottom of all scandals and shady financial dealings between the corporation and private business entities.
