{UAH} Land for oil terminal transferred to another developer

By Ephraim Kasozi

Posted  Monday, October 28  2013

In Summary

The government alleges that the agreement over the land ownership has been breached.

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The dispute over the ownership of the 640 acres land in Mpigi District, where government intends to construct an oil terminal, has been transferred into the names of another developer in prejudice of a court case, the Ministry of Energy has said.

In an October 4 letter to the Solicitor General, the Rev Frank Tukwasibwe, commissioner in the ministry, said the land had been gazetted for construction of the oil terminal under the Kenya- Uganda Oil Pipeline Extension Project.

"While the ownership dispute is still being handled by court, we have been informed that the title deed has been transferred to Sese Habitat Resort Limited by Mulowooza and Brothers Limited. This transfer is not in line with the terms and conditions of the signed memorandum of understanding," reads the letter.

Cancellation
Mulowooza & Brothers Limited initially claimed the controversial land through a mailo title that was cancelled after it was established that it was issued in error and transferred as proprietors on the freehold title held by N. Shah and Company Limited.

N. Shah and Company sued Mulowooza and Brothers Limited and the Attorney General seeking for declarations that it owns the said land.

Documents indicate that the commissioner of land registration, Ms Sarah Kulata, approved the transfer of the land to Sese Habitat Resort in April contrary to an earlier directive by the Inspectorate of Government in which she was barred from entertaining any transactions that are likely to introduce a third party on the land.

The land transfer exposes the government to a risk of making double payments since it had executed a memorandum of understanding with the two firms stating that the successful party in the suit would be paid the money for the land.