On September 16, 2008, Uganda’s parliamentary committee on Commissions, Statutory Authorities and State Enterprises heard that the Uganda National Social Security Fund (NSSF) received title to about 50% of the land that it bought from Kampala businessman, Amos Nzeyi and security minister Amama Mbabazi. One John Busungu of Geomap Surveyors, who were contracted by NSSF to survey the land, testified to the committee that the land titles for Plot 12 and Plot 20, representing 249.94 acres out of a total 463.87 or just over 50%, were still in the names of Amos Nzeyi. Mbabazi and Nzeyi sold the land, located at Temangalo, Busiro County, at a whopping US $15,000 per acre.

The NSSF contracted Geomap Surveyors to survey the land prior to completing the deal. Musungu informed the committee that after surveying the land, he had warned the NSSF that the land was mostly a swamp. However, according to him, NSSF officials told him that the swamp and marsh was OK since they could serve as a green belt in their housing projects.

The controversial land sale by Nzeyi and Mbabazi to NSSF is under investigation by parliament because of allegations that it was rife with corruption and influence peddling, especially by influential Banyarwanda and Bakiga government officials. Mbabazi is a Mukiga from Rukungiri in Kigezi. According to the evidence presented so far, bidding for the land was not open, thus violating the Public Procurement and Disposal of Public Assets (PPDA) law. Ezra Suruma, another Mukiga, Minister of Finance and co-owner of a commercial bank with Mbabazi, is reported to have authorized suspension of the PPDA law.  A government valuer also reported claims that the land was grossly overvalued, especially since much of it is swamp and marshes.

In another twist, President Museveni jumped into the fray earlier this week. Museveni intervened to support Amos Nzeyi, referring to him as a private businessman who cannot be blamed for simply selling his property. One Kampala political analyst sees Museveni’s support for Nzeyi expected in these times of unlimited government arrogance. He told this reporter, “Museveni and Nzeyi go way back over 10 years when they worked together to cheat Ugandan share holder in the Pepsi Cola bottling company and take it over without investing anything. On that, add the fact that he is a Munyarwanda.”

Local Uganda newspapers have reported that the National Social Security Fund (NSSF) bought 402 acres of land from Security Minister Amama Mbabazi and Rwandese origin businessman Amos Nzeyi for US $6.9 million. According to two real estate independent firms, Knight Frank International and Associated Consulting Surveyors, the amount paid by NSSF represented an overvaluation of about 100%. According to sources in Uganda banking circles the primary purpose for the deal was not the profit, but to liquidate investment in Buganda land.

At the beginning of August, Amama Mbabazi told The Independent magazine that he and Nzeyi sold land to NSSF to generate funds for buying out partners in the National Bank of Commerce, formally named Kigezi National Bank. Banking sources have told Buganda Post that the NSSF land sale was motivated by two major objectives. First, they wanted to take their money out of Buganda land because they are convinced that it is becoming too risky as the stand-off between the Kabaka and Museveni continues. Making a tidy profit through the NSSF deal was only a bonus. Secondly, they wanted to eliminate Kenyan and other untrusted shareholders so they can maintain maximum secrecy over who keeps money in their bank.

The National Bank of Commerce was originally called the Kigezi National Bank. It was started in the mid-1990s, when large scale money laundering and big stake corruption was taking root in Uganda. The initial investors in Kigezi National Bank included Ruhukana Rugunda, Tumusiime Mutebire (Bank of Uganda Governor), Amos Nzeyi, Sam Kuteesa, and others. Members of the banking community allege that for over five years, Kigezi National Bank has served as a vehicle for the owners and their friends to launder Congo and other ill gotten funds until around the year 2000 when they took on Kenyan partners and renamed it National Bank of Commerce. Total secrecy about the customers and transactions at National Bank of Commerce will give Mbabazi and his partners maximum flexibility to clean and legally move their massive wealth, including outside Uganda, without detection.

Mbabazi and Nzeyi are not the only wealthy Banyankore and Rwandese who are holding back on or exiting land investments in Buganda. Based on transactions at the Uganda Land Office, overall purchases of Buganda land by Banyankore, Bakiga and Banyarwanda have drastically fallen off since 2006.