By Our Reporter
The government has allocated UGX14 billion to settle a long-standing legal dispute between the Uganda Muslim Supreme Council (UMSC) and businessman Justus Kyabahwa, following a court ruling that authorized the sale of Gaddafi Mosque to recover a UGX19 billion debt.
The disclosure was made by Agnes Kunihira, Chairperson of Parliament’s Committee on Gender, Labour, and Social Development, while presenting the Ministry of Gender’s 2025/26 Ministerial Policy Statement before Parliament’s Budget Committee in April 2025.
Kunihira explained that the dispute stems from a June 24, 2020 land sale agreement in which UMSC sold a 517-hectare ranch in Sembabule District to Kyabahwa through Arthur Kayanja. The land was sold for UGX3.584 billion, with the agreement signed by Ramathan Mugalu, Secretary General of UMSC; Mufti Shaban Ramathan Mubajje; and Abdulkadir Idi Balonde, Chairperson of the Council.
Under the agreement, UMSC was required to hand over the land within 60 days and clear any outstanding rates or levies. It also stipulated that if Kyabahwa failed to take possession within 150 days for reasons not of his making, UMSC would refund the full payment with a 12% monthly interest. Additionally, UMSC was obligated to lift a caveat placed on the land title by Enterprise Handling Services Limited (ENHAS), which held a 15-year lease until 2028.
The agreement stated that the transaction had been approved by all relevant UMSC organs and provided for arbitration prior to court action in case of disputes. However, Kyabahwa later discovered that UMSC had sold the same land to a third party. After failing to recover his funds or take possession, he sued in the Commercial Court, demanding UGX18.9 billion due to accumulated interest over four years.
While the UGX14 billion allocation did not draw objections from MPs, a separate request from the Ministry of Gender for UGX800 million in counterpart funding for the UGX794.6 billion ($217 million) World Bank-funded GROW project drew criticism from legislators.
Patrick Isiagi (Kachumbala County) faulted the Ministry for poor planning, saying: “There is a real justification for this money, but the question is, did the Ministry prioritize it? This should have come first in the budget process. It’s unacceptable to budget upside down and later pressure this Committee when the funds could have been reallocated internally.”
Bukanga County MP Stephen Kangwagye questioned the project’s impact, remarking: “In our language, we say the language used while brewing local alcohol is different from that used when drinking it. My sister [from the Ministry] speaks with authority, but the reality on the ground is different.”
Pian County MP Achia Remegio proposed that the UGX2 billion allocated for child labour elimination be rechanneled to support the GROW project: “If they want the money, let them take it from the child labour budget. They tell us even sweeping a compound is child labour.”
However, Kunihira dismissed the proposal, stating: “We don’t agree with that. We shall revert to the Minister to find a better solution.”
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