National Social Security Fund (NSSF) has issued stern warning to people claiming ownership of the 830.6 acres of Nsimbe estate in Mpigi off Kampala-Masaka highway.
NSSF says a group of unscrupulous individuals led by a one Leo Kimalempaka have come forward to claim ownership of the land.
“To cement their baseless claims, they instituted a suit reference number HCCS 93 of 2017 at Mpigi High Court seeking to have the Fund’s certificates of Titles cancelled and to issue an injunction to stop the fund from utilising the land…,” NSSF wrote in a media statement.
Court ruled in favour of NSSF as the lawful owner of the land. However, the Fund said “these individuals have resorted to unlawful means to take possession of the land. This amounts to criminal trespass.”
“We would like to reiterate that the Fund is the rightful owner of the 830.68 acres of land, is in full possession of land and has embarked on plans to establish a low cost housing estate on the same,” NSSF said.
The Fund took full possession of the land in April this year after it paid businessman Isabirye Mugoya Shs 21.6bn to relinquish his 51 per cent claim to the estate.
NSSF managing director Richard Byarugaba told reporters then that the pay-out enabled the Fund to redeem initial investment and acquire a valuable asset in a prime location.
The pay-out came after years of protracted battles with Mugoya. The new claims show NSSF may still have to spend billions of savers’ money on more legal gymnastics between the fund and individuals that claim ownership to whole or part of it.
The controversy started in 2004 when Mugoya was given 51 per cent shareholding for his contribution of the 830 acres.
It was agreed that NSSF and Mugoya would, in a joint venture, construct tens of thousands of housing units, which would be sold to generate profit for both parties.
A year later, the inspectorate of government cancelled the deal saying it had been marred with corruption and mismanagement, including the loss of Shs 1.4bn through the over valuation of the land in question.
The struggle went on until September 2016, when the Commercial court said in a consent judgement that NSSF buys the 51 per cent shareholding from Mugoya to solely develop the land.
The completion of the transaction with Mugoya last April seemed to have let the land free for development.
New claims, even as NSSF says it is in full possession of the land in question, point to the fact that controversy on this asset is far from over.