Businessman Hassan Basajjabalaba Questions Shs140 Billion Bank Guarantee, Accuses Government of Unfairness in Parliament Probe
Businessman Hassan Basajjabalaba has accused the government of acting unfairly towards him during his appearance before Parliament’s COSASE committee, where he addressed a disputed Shs140 billion bank guarantee issued to his Haba Group in 2017. The guarantee was issued with no collateral provided, and the funds remain outstanding.
During his testimony, Basajjabalaba detailed the history of his 2001 City Square redevelopment tender win. His firm paid Shs1.635 billion for a 49-year sublease, only for the deal to be halted. This halt has now fueled claims totaling Shs168.8 billion.
According to NTV Uganda, Basajjabalaba claims he reached an agreement with the government to terminate his contracts on the understanding that he would be paid the full amounts owed to him. However, he told the committee that he has not received the full amounts as agreed, prompting his assertion that the government is treating him unfairly.
To resolve the ongoing dispute, Basajjabalaba proposed three resolutions to the committee: full payment, refund and reclaim, or halt investments. He also vowed to fight any new developer for the site as the parliamentary committee continues its probe into the accountability for public funds.
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