Businessman Hassan Basajjabalaba has told Parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) that his long-running compensation dispute with Government is linked to several cancelled property deals, including the redevelopment of Kampala’s City Square.
Appearing before the committee, Basajjabalaba said his company won a tender in 2001 to redevelop the approximately 2.5-acre City Square, after paying Shs1.635 billion to the then Kampala City Council (KCC) as a premium.
He said the proposed project was designed to preserve the green space above the square while allowing commercial facilities to be developed underneath.
The arrangement was initially structured as a five-year lease beginning in 2002, with an option to extend it for another 49 years. However, the project was later halted, leading to a dispute over compensation.
Basajjabalaba told the committee that Government has several options for resolving the outstanding claim. He said it could pay the balance it owes him, negotiate a refund and take back the property, or allow him to stop further investment and take over only what has already been paid for.
His comments come as Government considers renewed plans for the redevelopment of City Square, a development he said had surprised him given his unresolved claim over the property.
The City Square dispute is part of a wider history of property transactions involving companies associated with Basajjabalaba and the former KCC. These have included deals involving several Kampala markets and Constitutional Square, some of which later resulted in compensation claims following the cancellation or termination of agreements.
Meanwhile, Basajjabalaba’s appearance before COSASE has also brought renewed scrutiny to a Shs140.8 billion Bank of Uganda guarantee involving his Haba Group of Companies.
During the committee’s interaction, Basajjabalaba reportedly put the amount Government owes him at Shs168.8 billion, a figure that differs from the Shs140.8 billion contained in the Auditor General’s report.
COSASE chairperson Muwada Nkunyingi said the committee had recorded fresh figures concerning Haba Group that differ from those in the Auditor General’s report. The discrepancies have prompted committee members to seek clarification on the payments, agreements and financial obligations involved.
The committee is also examining the circumstances under which the Bank of Uganda guarantee was issued in 2017, the obligations of the parties involved and efforts to recover the funds.
Basajjabalaba had earlier been summoned to appear before COSASE after failing to attend a previous sitting. His lawyer, Calvin Ojambo of Magina Advocates, had requested more time, citing the need to obtain documents relating to transactions dating back to 2009–2011 and informing the committee that his client was indisposed.
The committee subsequently directed that Basajjabalaba appear in person on September 23, 2026, with the summons to be served through a police officer.
The latest proceedings have therefore brought two related but distinct issues into focus: Basajjabalaba’s long-running compensation claims arising from cancelled Government property deals, and the separate COSASE inquiry into the Bank of Uganda guarantee involving Haba Group.
As the committee continues examining the records, the differing figures of Shs140.8 billion and Shs168.8 billion are expected to remain a key point of clarification alongside the agreements and payments underlying the claims.
