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Nakigalala Land Not Yet Purchased by NSSF

NSSF Ag. Managing Director Patrick Ayota. Image source: Exposed Uganda

UGANDA, Kampala | Real Muloodi News | The National Social Security Fund (NSSF) management has clarified that the purchase of Nakigalala land has not yet taken place, despite the claims made by Gender Minister Betty Amongi that the Fund had budgeted to buy land at Nakigalala for USh400 billion.

NSSF’s Ag. Managing Director, Patrick Ayota, confirmed that the Fund had budgeted for two pieces of land – one at Nakigalala and another at Nakawa, with a budget of Shs 400 billion, including VAT and contingencies, following a proposed partnership with Uganda Police.

The Fund’s management had evaluated the prospect of acquiring the Nakigalala land on 26th February 2019 and initially deemed it attractive.

Still, they were mindful of the risks and the need for thorough due diligence.

A provision of USh250 billion, including VAT and contingencies, was made in the 2019/2020 budget paper, subject to the resolution of all legal due diligence issues and compliance with procurement regulations.

As part of its efforts to source new land, the Fund received a letter from the Inspector General of Police on 9th August 2021, requesting a meeting to discuss a potential partnership for the development of key infrastructure for a potential purchase of approximately 40 acres of police-owned land in Naguru.

A budget of Shs 150 billion, including VAT and contingencies, was made for the Naguru land, which informed a budget estimate of USh150 billion.

The budget amount for both Nakigalala (USh250b) and land at Naguru (USh150b) informed the total amount of USh400 billion for “Strategic land Purchases” in the FY 2022-2023 budget paper submitted to the Minister of Gender for approval.

Former Managing Director Richard Byarugaba confirmed that the budget indicated “purchases” for two pieces of land and not “purchases” for a single piece.

Ayota noted that the Fund uses a zero-based budgeting methodology, meaning that all spending in the year must be anticipated and budgeted for, without which no procurement can be undertaken.

In practice, due to the lengthy due diligence and approval processes, it does not always happen.

In the case of Nakigalala, the due diligence reports indicated numerous claims on the property, and the transaction is on hold until further notice.

Ayota affirmed that the Fund would have to go through the process of approvals before the final decision is made.

The Board had not yet approved the procurement of the Nakigalala land pending the completion of the due diligence process per the Board’s earlier directive.

The due diligence process has not yet been concluded mainly due to multiple claims on the land, which have not yet been resolved by the potential vendor.

The NSSF’s investments officer, Gerald Kassato, told the Parliamentary Committee that the budget amount for both Nakigalala and land at Naguru had informed the total amount of USh400 billion for “Strategic land Purchases” in the FY 2022-2023 budget paper submitted to the Minister of Gender for approval.

He added that the land has not yet been purchased and will follow all due diligence if the Fund goes ahead with the transaction.

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