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Judge slaps Shs 37bn bill on lawyers

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Written by Edris Kiggundu   March 31, 2013

Uganda Law Society declares war on him

Justice Anup Singh Choudry has ordered two prominent lawyers to pay Shs 37 billion for allegedly being ‘dishonest’ in a case in which an investor evicted 410 tenants from a 11.6 square mile piece of land in Mubende to pave way for a coffee plantation and factory.

The ruling has shocked the legal fraternity and renewed the war between Justice Choudry and the Uganda Law Society, which has long called for him  to be fired.

The judge said lawyers James Nangwala and Alex Rezida should pay the colossal figure as damages to the tenants for misadvising a government entity (Uganda Investment Authority) to purchase land that had encumbrances.

The duo is supposed to pay the money within 30 days from the date of the ruling and cannot appeal against the ruling unless they first deposit the full sum in court. The judge said this should serve as a lesson that ‘government cannot be an open cheque book for the negligence, fraud, dishonesty and theft of their lawyers.’

Nangwala and Rezida represented UIA, which identified the land for the investors, Neumann Kaffee Gruppe (NKG) of Hamburg, Germany, in August 2001. Choudry, in the March 28 ruling, 2013, said Nangwala and Rezida were grossly, recklessly and deliberately negligent in failing to complete the purchase of the land, contrary to the conditions in the sale agreement.

“They should  have been more diligent because the overall quantum of the transaction including the compensation that was payable under the contract was in the region of billions of shillings; and the issue of compensation of tenants in the contract could not have  been overlooked. They would have known full well the negligent  implications of not concluding the terms of the sale agreement,” he said.

The figure, Choudry said, included Shs 3.8bn as special damages to the plaintiffs, Shs 1.1bn as disturbance allowance, Shs 2bn as general damages for the eviction of the plaintiffs, Shs 2bn as exemplary damages for oppressive and violent behaviour suffered by the tenants and Shs 1bn as damages in pain and suffering for the tenants.

This is in addition to Shs 27bn accrued as interest on all the above damages 10 years since the case was lodged in court.

If the lawyers cannot pay, Choudry said, the tenants may apply to the Law Society or Law  Council to be paid from the compensation fund where a member of the public has suffered from the dishonesty of the lawyers.

But Nangwala, laughing, described the ruling as a set of ‘superfluous statements which have no meaning in law.’

He said they would not pay the money because the two parties to the suit were the tenants and government.

“He fabricated facts of his own,” Nangwala told The Observer on Saturday. “I can tell that it is a vindictive judgment meant to pay back those who stand by the decision of ULS to take him to court.”

ULS has petitioned the Judicial Service Commission, demanding that Justice Choudry be removed from the bench, citing improper conduct while he was practising law in the United Kingdom. The society also petitioned the Constitutional court over the matter, which is now before President Museveni. This has drawn a wedge between the judge and ULS, with some members vowing to boycott his court.

According to an email to members written by the newly elected ULS president, Ruth Sebatindira, and seen by The Observer, Choudry has crossed the ‘rubicon.’

ULS reacts

“An attack has been made on the Uganda Law Society which was not even a party to this suit in circumstances that suggest that the judge may be taking his wrath out on members of the bar who abide by the ULS position not to appear before him,” Sebatindira wrote a day after the ruling.

In April 2012, ULS requested President Museveni to set up a special tribunal to investigate allegations of improper conduct on the part of Choudry. According to documents filed in court in 2008 by ULS, Choudry was on October 31, 2000 convicted of making an excessive bill of costs amounting to £1 million (Shs 4 billion) in a libel case he was handling on behalf of a Sikh leader against the Sunday Times, a UK newspaper.

ULS says that Choudry was subsequently struck off the register of lawyers and solicitors from the United Kingdom and his law firm, Singh and Choudry, was closed down. Choudry denies the allegations which he has challenged in court. Bruce Kyerere, a former ULS president, described Choudry’s ruling as “the epitome of lunacy” and further evidence that he should not be a judge.

He said it was unconstitutional for the judge to demand that lawyers first deposit the entire amount in court before they can lodge an appeal.

“His continued presence on the bench is a disgrace to the judiciary,” Kyerere said.

Dramatic case

The controversial case was first lodged in 2002 by a group of tenants. However, judges it was allocated to kept rescheduling it. In 2009, with the support of a German NGO, FoodFirst Information and Action Network (FIAN), the tenants revived the case.

The tenants argued that NKG acquired the 11.6 square miles of contested land from UIA on a 99-year lease illegally. The land covered the villages of Keitemba, Luwunga, Kijunga and Kiryamakobe. They said that they were forcefully evicted from the land by soldiers from a nearby army barracks with the assistance of Mubende’s then Resident District Commissioner, Perez Katamba. In the process, they lost their property, livelihood, shelter and education.

They claimed that the compensation given was insufficient and not comparable to what they had lost. Choudry took over the case in 2009 and in the early stages Nangwala and Rezida asked him to disqualify himself because ULS had questioned his integrity. They also feared that being lead lawyers in the petition filed by ULS against Choudry, he might be biased against them.

But Choudry rubbished their worries and maintained that he would be impartial.

He said: “…my  performance  in  the  judiciary  has been impeccable and I  demonstrated exemplary behaviour in the  past five  years as a judge. I did not do anything wrong under our Constitution. In the past I also ruled in favour of clients who were represented by Nangwala and Rezida. I suspect there is  some other motive why James Nangwala and Alex Rezida do not want to appear before a gray bearded judge in this case.”

The ruling

After three years of court arguments, Choudry ruled on March 28 that the tenants had been illegally evicted without being fully compensated. He instructed that they be paid damages, dating back 10 years, since they were evicted. Choudry faulted UIA for not carrying out due diligence, supervision and checks on the land.

He said: “… the whole transaction was suspicious. UIA  failed to check land  values and the compensation amounts payable.”

Choudry said the German investors, NKG, had a duty to ensure that people were not exploited. But he reserved the harshest criticism for Nangwala and Rezida, UIA’s lawyers.

“Messrs Nangwala and Rezida deliberately withheld information in breach of their fiduciary duty and this deliberate omission was a dishonest conduct. Nangwala and Rezida had forsaken their loyalty to the Leaser and Lessee in the grant of the lease, when to their knowledge the title was lumbered with encumbrances,” Choudry said.

ekiggundu@observer.ug

DEFENDING LAND AND ENVIRONMENTAL RIGHTS

Statement: The Energy Sector Strategy 2024–2028 Must Mark the End of the EBRD’s Support to Fossil Fuels

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The European Bank for Reconstruction and Development (EBRD) is due to publish a new Energy Sector Strategy before the end of 2023. A total of 130 civil society organizations from over 40 countries have released a statement calling on the EBRD to end finance for all fossil fuels, including gas.

From 2018 to 2021, the EBRD invested EUR 2.9 billion in the fossil energy sector, with the majority of this support going to gas. This makes it the third biggest funder of fossil fuels among all multilateral development banks, behind the World Bank Group and the Islamic Development Bank.

The EBRD has already excluded coal and upstream oil and gas fields from its financing. The draft Energy Sector Strategy further excludes oil transportation and oil-fired electricity generation. However, the draft strategy would continue to allow some investment in new fossil gas pipelines and other transportation infrastructure, as well as gas power generation and heating.

In the statement, the civil society organizations point out that any new support to gas risks locking in outdated energy infrastructure in places that need investments in clean energy the most. At the same time, they highlight, ending support to fossil gas is necessary, not only for climate security, but also for ensuring energy security, since continued investment in gas exposes countries of operation to high and volatile energy prices that can have a severe impact on their ability to reach development targets. Moreover, they underscore that supporting new gas transportation infrastructure is not a solution to the current energy crisis, given that new infrastructure would not come online for several years, well after the crisis has passed.

The signatories of the statement call on the EBRD to amend the Energy Sector Strategy to

  • fully exclude new investments in midstream and downstream gas projects;
  • avoid loopholes involving the use of unproven or uneconomic technologies, as well as aspirational but meaningless mitigation measures such as “CCS-readiness”; and
  • strengthen the requirements for financial intermediaries where the intended nature of the sub-transactions is not known to exclude fossil fuel finance across the entire value chain.

Source: iisd.org

Download the statement: https://www.iisd.org/system/files/2023-09/ngo-statement-on-energy-sector-strategy-2024-2028.pdf

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DEFENDING LAND AND ENVIRONMENTAL RIGHTS

Breaking: Three community land rights defenders from Kawaala have been arrested.

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Old kampala police where defenders were arrested from .

Breaking: Three community land rights defenders from Kawaala have been arrested.

By Witness Radio team

Police at Old Kampala Regional Police Headquarter have arrested three of the six community land rights defenders from Kawaala Zone II, Kampala suburb, and preferred a fraud charge before being released on bond.

Kasozi Paul, Busobolwa Adam, and Kabugo Micheal got arrested on their arrival before being taken inside interrogation rooms. They were questioned from 11:00 AM – 12:30 PM local time and later recorded their statements.

Section 342 of the Penal Code states that forgery is the making of a false document with the intent to defraud or deceive. It carries a three year imprisonment on conviction.

According to lawyers representing victims, defenders are arrested on the orders of the Deputy Resident City Commissioner (RCC) in charge of Rubaga Division Anderson Burora and accused them of fraud.

Resident City Commissioner is a representative of the president in the Capital City at the division level.

The charges are a result of continued resistance by Kawaala community seeking fair compensation and resettlement before Lubigi drainage channel is constructed. Since the first COVID outbreak in 2020, the victim defenders and others have been leading a pushback campaign to stop forced evictions by a multimillion dollars Kampala Institutional and Infrastructure Development Project (KIIDP-2) funded by World Bank. Kampala Capital City Authority (KCCA) is the implementor of the project.

This project first impacted Kawaala Zone II around 2014, when a channel diversion was constructed. The current planned expansion will widen that channel and require forced evictions across an area at least 70 meters wide and 2.5 km long.

The New Vision, a local daily of June 21st, 2022, quoted Burora accusing Kasozi Paul, one of the community land rights defenders from Kawaala Zone II of being a fraudster.

Witness Radio – Uganda challenges the deputy RCC Burora to produce evidence that pins the defenders on fraud instead of criminalizing the work of defenders.

“We warn Mr. Burora against using police to harass defenders who have openly opposed a project which is causing negative impacts on the community” Adong Sarah, one of the lawyers representing the defenders said.

The defenders got released on police bond as they are expected to report back to the police on Monday, the 18th of July 2022 at 11:00 AM local time.

 

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DEFENDING LAND AND ENVIRONMENTAL RIGHTS

Signs of harmful projects with financing from development institutions are spotted in Uganda…

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By Witness Radio Team.

The growth of a country is discerned by great leaders and innovators who see opportunities out of darkness and transform their areas from nothing to success. Those are great leaders whose interest is to see the developments in their countries and the well-being of their citizens.

Every single day, countries all over the world receive investors that acquire loans, grants, and donations to implement mega projects that are seemingly expected to develop host countries. countries and investors borrowing the money Often, countries and investors portray how these projects improve the livelihood of the browbeaten, au contraire, they have left many broken families, poor-dirty homesteads, and shattered dreams.

Uganda is one of those countries, whose citizens have paid a price for reckless or unsupervised and profit-led international investment. In a bid to implement its industrial policy, the country has welcomed both foreign and local investors with interests in the fields of extraction, industrial agriculture, carbon credit tree plantation, mining, infrastructural projects, and many others.

It has received billions of dollars from different financiers including commercial banks, Pension Funds, and International Development Finance Banks or institutions, among others. For instance, the World Bank has invested more than 20 Billion Dollars since 1963 and currently

Every project comes with its own chilling story. More often their stories are unheard by the World. Witness Radio – Uganda surveyed some projects in Uganda. This study revealed agony, illegal evictions, abject poverty, environmental degradation, and loss of life among others, as some of the consequences suffered by the would-be beneficiaries of these international funded projects across the country.

In the capital of Uganda, Kampala, over 1750 families were forcefully evicted from a city suburb, Naguru, for Naguru- Nakawa housing estates.  11 years down the road the project that was highly hyped is to take off on the grabbed land. Pleas from the victims of the eviction to regain their land have all fallen on deaf ears.

About 80km away from Kampala is the island district of Kalangala surrounded by the World’s second-largest lake, Victoria, and known for palm growing. When the palm-oil project was introduced to residents they were given the impression that it would improve their livelihoods and create job opportunities.  Instead, it has dumped thousands into poverty after their land was grabbed by BIDCO, a Wilmer international-funded project. People lost land and now work on plantations as casual laborers. The neighboring communities are accusing BIDCO workers of sexual and gender-based violence.

In the South-Western District of Kiryandongo, multinational companies including Agilis Partners Limited, Kiryandongo Sugar Limited, and Great Seasons SMC Limited with funding from The United States Agency for International Development (USAID), The Department for International Development (DFID) of the United Kingdom, and Common Fund for Commodities among other financiers are forcefully evicting more than 35,000 people. The eviction has been on since 2017.

Workers that worked on a World Bank Project in Soroti, in the far east of the country, are accused of sexually harassing minors. Several young girls were defiled and left pregnant. Despite the government being aware of this none of the pedophiles have been brought to book, the World Bank-funded project in the Eastern Town of Soroti left several underage girls defiled and impregnated.

In late 2020, residents of Kawaala zone II woke up to the hail of armed men and graders evicting and destroying their properties to implement a multimillion-dollar project funded by the World Bank. The project is being implemented by the Kampala Capital city Authority (KCCA) on behalf of the government of Uganda.

The above-listed and other projects, on the other hand, continue to perpetuate violence and judicial harassment against leaders of Project Affected Persons (PAPs) and community land and environmental rights defenders because of their work that resists illegal evictions and destruction of the environment among others.

Although project implementers such as government entities accuse local communities of occupying land targeted for projects illegally, in most cases victim communities have rights over these pieces of land because their settlement on the same land can be traced to have happened generations ago.

No matter how people are negatively impacted being by these harmful projects, financiers continue to release more money to the government and investors. The banks aim at profit margins other than the livelihoods of the people. In Bulebi village, Mbazi parish, Mpunge Sub County in Mukono district, Akon’s futuristic city is about to lead to the eviction of over 1000 residents whose entire lives have been built on their land.

In April last year, American rapper Aliaune Damala Badara well known for his stage name AKON visited Uganda in search of land for constructing the city. On the same business trip, he met President Museveni Yoweri Kaguta and expressed his interest in building a futuristic city with its currency. The president ordered the Ministry of Lands, housing, and urban development to look out for free land for his city.

However, on 7th Jan 2022, the Uganda Land Commission showed the Minister for Lands, Housing, and Urban Development “Hon Judith Nabakooba” land that was proposed for the Akon city. According to the Uganda land commission, the land is Freehold Volume 53 Folio 9 measuring I square mile.

This has sparked outrage amongst the affected as they were never consulted or consented to allow the project in their community. According to community members that Witness Radio interviewed, they said they heard the distressing news of Akon city through the Media.

The community said no official from the ministry has ever approached them about their land giveaway. “Our country is full of land evictions and evictors begin in that way. There has been no official coming on the ground to officially inform us about the project and neither have we heard any official communication of compensation.” Obori said.

Residing in the attractive village surrounded by freshwaters, the community asserts this has been the source of livelihood and advised the government to get alternative land for the City.

Controversies surrounding the land giveaway and ownership of the area still exist. A section of residents have protested and vowed not to surrender their land for the City. They claim to have acquired freehold titles from the Mukono lands board.

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