What Next: Uganda Muslim Supreme Council Loses Bid To Halt Auction Of Prime Properties

In a recent legal setback for the Uganda Muslim Supreme Council (UMSC), an attempt to halt the auctioning of several key assets to settle a substantial Shs19 billion debt has been dismissed by the Court of Appeal. The properties slated for auction include the land housing the iconic Gaddafi National Mosque in Old Kampala.

Justice Christopher Gashirabake, presiding as the sole judge, delivered the ruling, stating that the businessman, Justus Kyabahwa, should be allowed to proceed with the sale of eight prime properties to recover the owed sum. The judge emphasized that UMSC failed to demonstrate a likelihood of success in their pending appeal and that any potential harm could be compensated through damages.

“In the circumstances of this case, the applicant (UMSC) has failed to prove that it has a likelihood of success in the pending appeal or that it will suffer any damage or harm that cannot be atoned for by an award of damages. Clearly, the balance of convenience would be in not granting this application for stay of execution but to allow the party (the businessman) with the judgment in hand to proceed with the execution process,” ruled Justice Gashirabake.

The Court’s decision marks a significant development in the ongoing legal battle, prompting the businessman’s legal representative, Ahmed Kalule, to express readiness for the auction of the designated properties if the UMSC fails to settle the outstanding debt by December 24.

UMSC’s unsuccessful appeal stemmed from a ruling by the Commercial Division of the High Court, which mandated the auctioning of several properties to satisfy the businessman’s financial claims. The attached properties, as outlined in the court order, encompass land parcels, shares in companies, and strategic plots across different locations, including Old Kampala, Kyadondo, Bukwe, Hoima, Jinja, Mbale, Migyera-Buluri, and Entebbe.

The roots of the legal dispute trace back to a protracted land sale in Sembabule District, where the UMSC sold land to Kyabahwa for Shs3.5 billion. Due to complications arising from existing leases, Kyabahwa was unable to take possession, and despite the UMSC’s obligation to refund the money promptly, the delay led to accumulating interest charges. The outstanding debt has since escalated to approximately Shs19 billion over the past 15 months.