Auditor General blames gov’t for ignoring advice on Mutungo land
The Auditor General John Muwanga has told the Land probe that the true value government should have paid for the contentious land on Mutungo hill is not known since it was never valued by the Chief government valuer.
Appearing before the Justice Catherine Bamugemereire judicial commission of inquiry on land matters, Muwanga said that there a lot of flaws in the transaction.
“Despite the court order and existence of various caveats, the Uganda Land Commission proceeded to enter into a sale agreement with Buwule Muhammad for Plots 56, 58, 59, 67 and 29 on September 12, 2008 in consideration of a sum of Shs 2.4 billion. This was in total disregard of an interim order,” Muwanga said.
The sale agreement government entered into with Dr Muhammad Kasasa Buwule required the government to pay Shs 2.4 billion within 60 working days, failure of which would attract an interest which was not specified in the agreement.
Muwanga told the commission that he took further steps to write to the Inspector General of Government (IGG) after noticing gaps in the ownership of the land.
He further faulted the Uganda Land Commission for going ahead to pay for the land without a valuation report from the Chief government valuer.
Already, there is a disagreement between the chief government valuer, Gilbert Kermundo and the Attorney General over how much interest should be paid to Kasasa.
While Kermundo values the accumulated interest at Shs 7.294 billion, the Deputy Attorney General, Mwesigwa Rukutana put the figure at Shs 26.4 billion.
To arrive at his figure, Kermundo told the probe commission, he applied the fixed deposit rate to calculate the interest.
“When the bank rate is not clear, I used the assumption that government paid him and he invested the money in a fixed deposit at a commercial bank which is a no risk venture, the money would attract a fixed deposit interest. I looked at threats from 1970 to 2017; that is the amount I came up with” said Kermundo
Rukutana had earlier told the same commission that experienced people from the Ministry of Finance had calculated the amount and came up with Shs 26.4 billion.