NEW VISION-31ST OCTOBER 2002

Karim Sold House To Mushega

POSH COMPLEX: The house Rwakakooko says he sold to Karim. Mushega says he bought the building from Karim

By Richard Mutumba
THE sh210m house bought by city tycoon Karim Hirji from the former URA chief Elly Rwakakooko is now owned by the East African Community (EAC) secretary general, Amanya Mushega.

“When I was appointed EAC boss, I decided to put my little money in a more useful asset. I contacted estate agents in town who identified that property for me. I borrowed some more money from Housing Finance Company of Uganda and paid it off,” Mushega told The New Vision from his Arusha office yesterday.

He declined to disclose the amount he paid for the property, referring the reporter to his lawyers, Kagumire and Company Advocates who executed the transaction.

The property, which has been at the centre of controversy, is located at Plot 30 Lower Naguru East Road, near Kampala.

The Uganda Revenue probe commission led by Justice Julia Ssebutinde learnt on Monday that Rwakakooko took sh55m from Karim Hirji under unclear circumstances.

However, Karim’s lawyer Masembe Kanyerezi told The New Vision on Tuesday that the money was the last installment for the purchase of Plot 30 Lower Naguru East Road from Rwakakooko.

A source that was involved in the deal said Karim Hirji sold the 0.152 hectares where the property is, to Amanya Mushega and wife on January 18, 2001.

“The property is no longer owned by Karim. Transfers were made in January last year, but I cannot tell you the amount involved,” the source told The New Vision.

Mushega said he renovated the property and has rented it out in order to raise money to pay back the bank loan.

“I don’t want to be involved in those funny deals I have been hearing. Mine was a clean deal and as a lawyer, I ensured that the property was free from controversy before I paid for it,” the former senior Cabinet minister quipped.

Rwakakooko on Tuesday denied taking any bribe from Karim Hirji or any other person. He said the sh55m was not a bribe to help Karim dodge paying sh2.4b in taxes.

However , Ssebutinde rejected his defence, saying it was inadequate.

She questioned why Rwakakooko was doing business with Karim who was suspected to be evading taxes.

Ssebutinde was earlier angered by revelations that instead of paying the sh2.4b, Karim appealed to the State House and the tax authority allowed him pay just over sh700m which he had proposed.

State House denied it gave Karim preferential treatment.
Ends

Published on: Thursday, 31st October, 2002

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