Milton Obote Foundation (MOF) and Kampala Capital City Authority (KCCA), who are locked in a dispute over sh135.8m ground rent for Uganda House, are holding negotiations for an amicable settlement.
On Friday, the High Court in Kampala was informed that the parties had already started the process to ensure that the dispute is resolved.
Lawyers Peter Walubiri(MOF), together with Winnie Kabeije and Ritah Mutuwa(KCCA) appeared in court presided over by the civil division registrar Tadeo Asiimwe.
Walubiri stated that talks had commenced, and that KCCA had conceded to the application. He asked court to grant reliefs sought in the application.
"We have been having discussions between counsels and the respective parties. We have agreed to meet and do further reconciliation of figures," Walubiri stated.
The court had convened to hear an application to temporarily prohibit KCCA from enforcing the fee collection, pending the hearing of the main case.
Kabeije confirmed Walubiri's statement, noting that the parties initially met on September 13. She asked court for a three-week period to enable the parties deliberate, and later inform court on the progress of the negotiations.
Accordingly, the registrar granted the application. However, he pointed out that since hearing of the main suit is scheduled to start on September 23, the parties should notify Justice Yasin Nyanzi who was assigned the case file.
According to documents filed on August 29, MOF wants to block any attempts by KCCA, which it claims has threatened to forcefully recover the money.
Uganda House is located on prime land at plot 10, Kampala Road. MOF states that KCCA has threatened to obtain a warrant for the sale of the property to recover the purported debt.
Established in 1963, MOF deals in real estate, owns prime properties, and is the financial arm of the opposition Uganda People's Congress party(UPC).The party headquarters are situated on Uganda House.