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Uganda: Naguru Investor to Sue Govt for Shs815 Billion
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The Monitor (Kampala)
25 July 2008
Posted to the web 24 July 2008
Richard Wanambwa
Kampala
Opec Prime Properties Ltd, the company that won a tender to re-develop the dilapidated Naguru/Nakawa housing estates has issued a notice of intention to sue the government for breach of contract.
According to the notice by Kampala Associated Advocates received by the Attorney General's Chambers on July 18, Opec Prime Properties Ltd, which belongs to UK- based real estate giants, the Comer Group, is seeking up to Shs 815 billion for breach of contract, resulting from the halting of the Nakawa/Naguru project and subsequent land give-ways within the project land.
"Take notice that Kampala Associated Advocates intends to institute a suit against the Attorney General in the High Court at Kampala in which the intended plaintiff will seek special and general damages and interest thereon together amounting to US$ 500,000,000 plus costs, of the suit for breach of the public - private - partnership agreement entered into the government of Uganda and the intended plaintiff,"reads the notice.
The government on October 15, 2007, signed a public private partnership agreement, with Opec, a company set up by the Comer Homes Group, as a special purpose vehicle to oversee the re-development project and transform the area into a modern satellite town of over 5,000 flats, bungalows and commercial blocks.
However, the Inspector General of Government, Justice Faith Mwondha, in December 2007, halted the project, saying that she wanted to investigate the tendering process after some sitting tenants complained.
Gen. Otafiire on June 13 issued a "final and last" warning ordering the residents of the dilapidated structures to vacate by July 12 or face forceful eviction.
But Justice Mwondha on June 16 also issued her own notice directing the residents not to vacate until her office had completed an investigation into the process leading to the award of the re-development tender.
Government was obliged to transfer or procure the transfer into the company's name - the certificates of title for the project site immediately upon the signing of the agreement in the event of not later than 30 days from the date of signature.
"In further breach of the PPP agreement, government of Uganda has allocated and transferred part of the land comprising the project site to other persons," the notice to the AG reads.
The notice indicates that unless the government immediately transfers or procures the transfer of certificates of title for the project site into the names of Opec Prime Properties Ltd with the full acreage of 56.1 hectares and avail vacant possession of the project site to them within 45 days from July 18, the legal proceedings shall proceed without further notice.
Gen. Otafiire while appearing before Parliament committee on Local Government to defend his budget on Wednesday said government would pay heavily because the IGG has personalised the issues of Naguru and Nakawa re-development.
"The IGG is interfering in my department. How could she write to the Mbale town clerk stopping my administrative directive in the ministry? I don't want to be seen as bullying one arm of government," Gen. Otafiire said yesterday.
MPs claimed that the IGG was sitting on a report that exonerates Gen. Otafiire and alleged that it was just personal grudge on the part of the IGG to fight Gen. Otafiire using the project. The committee was also told that some unnamed people are against the Minister of Local Government being in government and are now using this to fight him.
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Mr Fred Ruhindi, deputy Attorney General refused to comment saying he had not seen the letter. "If it was not copied to me and I have not seen it, I cannot say anything. I am sorry I cannot comment," said Mr Ruhindi. When Daily Monitor tried to contact the IGG's direct line , there was no response.
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