The Uganda Muslim Supreme Council (UMSC) faced a setback on Wednesday as it lost an appeal attempting to prevent the auctioning of several valuable properties, including the land housing the Gaddafi National Mosque in Old Kampala, to settle a Shs19b debt owed to businessman Justus Kyabahwa.
Justice Christopher Gashirabake, acting as the sole judge of the Court of Appeal, ruled that the balance of convenience favored allowing businessman Justus Kyabahwa to proceed with selling the eight prime properties to recover his money.
The UMSC’s attempt to prove a likelihood of success in the pending appeal or irreparable harm failed.In response to the ruling, lawyer Ahmed Kalule, representing the businessman, welcomed the decision, stating they are prepared to auction the designated properties by December 24 if UMSC fails to settle the outstanding debt.
The unsuccessful appeal by UMSC followed a decision by the Commercial Division of the High Court, which ordered the auctioning of several properties to recover the businessman’s money.
The properties listed in the court attachment order include land in various locations and shares in Uganda Ranchers Ltd and Commercial Holdings Ltd, subsidiaries of the Uganda Moslem Supreme Council.The case originated from a prolonged land sale where UMSC sold land in Sembabule District to Kyabahwa for Shs3.5 billions.
However, Kyabahwa couldn’t take possession of the land, as it was already leased to Enterprise Handling Services Limited for 15 years.
UMSC was supposed to refund the money immediately but didn’t, leading to interest charges and accumulating the debt to about Shs19b.
Among the properties listed to be auctioned include; Land in Leasehold Register Volume KCCA 149 Folio 16 land at Kampala City William Street which houses tabliq mosque.Others are Land are; Lease Register Volume 2771 Folio 2, Old Kampala Plot 23-25 which houses the national Muslim mosque and the Muslim headquarters; Kyadondo Block 195 plot 5463 Land at Kyanja Kampala City; one square miles of land at Bukwe Hoima district, one acre of land located at Lumbas, Jinja city; plot of land at Mbale city; shares in Uganda Rancheers Ltd & Commercial Holdings Ltd; Subsidiaries to Uganda Moslem Supreme Council that own 2 square miles land at Migyera-Buluri; plot of land at Entebbe Municipality opposite Victoria Mall.