Legal Battle Ensues Over Exclusion of Gaddafi National Mosque from Auction Amidst Debt Controversy”

Old Kampala Hill Assets Spark Legal Quagmire as Uganda Muslim Supreme Council Faces Lawsuit

In a dramatic twist, the Gaddafi National Mosque atop Old Kampala hill, previously teetering on the brink of auction due to a substantial debt owed to businessman Justus Kyabahwa, has been excluded from the list of assets set for sale. The decision, communicated by Louiza Auctioneers and Court Bailiffs to the High Court commercial division, adds a layer of complexity to an already contentious situation.

In a formal document addressed to the deputy registrar, Louiza Auctioneers revealed that the Uganda Muslim Supreme Council (UMSC), listed as Lease Hold Register Volume 2771 Folio 2, Old Kampala Plot 23-25, is encumbered by a caveat, rendering it ineligible for auction. The letter stated, “This property… is a subject of a caveat and contentious… ceases to be part of the properties under attachment and execution and shall not be auctioned.”

Potential bidders were promptly notified that the property, encompassing significant structures including the National Muslim Mosque and the Muslim community headquarters, would not be available for sale. The exclusion comes amidst a crisis stemming from a complex land transaction between UMSC and Justus Kyabahwa, resulting in a staggering debt of Shs 19 billion.

The transaction involved the sale of a two-square-mile tract of land for Shs 3.584 billion, with the intention of transferring ownership within 150 days. However, complications arose as the land held an existing 15-year lease, leading to a failure in ownership transfer and the subsequent accumulation of the significant debt.

The controversy escalated with allegations of contradictory interest clauses, considered against Islamic teachings, reportedly introduced by the former UMSC secretary general, Hajji Ramathan Mugalu. In pursuit of recovering his funds, Kyabahwa’s legal action resulted in UMSC’s defeat in court and a directive to settle the debt within 30 days.

Despite the exclusion of the Old Kampala properties from auction, the legal battle continues, with eight properties, including those advertised on November 21, 2023, still earmarked for auction if the debt remains unpaid.

The entity responsible for placing the caveat on the property remains unidentified, sparking intrigue within legal circles. Typically initiated by parties with vested interests, caveats serve as official notices alerting the public to specific concerns related to land or property.

A city lawyer, speaking anonymously due to the sensitivity of the issue, emphasized that no formal transaction can be documented on the land title until the caveat is removed. In certain circumstances, the court might authorize the bailiff to intervene, considering the circumstances surrounding the placement of the caveat.

“The appropriate course of action… is for a bailiff to remove the property with a caveat from the attachment list. Properties with caveats could present a challenge for the bailiff in facilitating a sale,” noted the lawyer, highlighting potential hesitancy from buyers due to pending interests.

The controversy surrounding the proposed sale has sparked discontent within the Muslim community, leading the Association of Muslim Lawyers to file a lawsuit against the Mufti of Uganda, Sheikh Shaban Ramadhan Mubaje, and Justus Kyabahwa. The suit, lodged at the civil division of the High Court in Kampala, alleges fraudulent dealings and raises concerns about the potential auctioning of various Muslim properties, including the UMSC headquarters at Old Kampala.

As the legal battle unfolds, stakeholders await further developments, anticipating resolution in this complex and high-stakes situation.